Modular data center refers to portable and modular purpose-built infrastructure solutions that can be rapidly deployed as standalone data centers. They offer benefits including reduced deployment time, optimal capacity utilization, quick scaling, remote management and enhanced energy-efficiency as compared to conventional brick-and-mortar facilities.

The increasing demand for scalable, efficient and edge data center infrastructure to support growing data traffic from 5G networks, IoT devices and cloud services is estimated to drive the adoption of Modular Data Center Market solutions across various industries.



The global modular data center market size was valued at US$ 18.49 billion in 2023 and is expected to reach US$ 87.65 billion by 2030, grow at a compound annual growth rate (CAGR) of 24.9% from 2023 to 2030.

Key Takeaways

Key players operating in the Modular Data Center are Huawei Technologies, International Business Machines Corporation, Eaton, Bladeroom, Cannon Technologies Ltd.



Key opportunities in the market include growing adoption of hyper-converged infrastructure and adoption of edge computing which require scalable and efficient data center infrastructure near the end-user. The market is also witnessing increasing global expansion driven by demand across major markets including North America, Europe and Asia Pacific.



Market drivers

The increasing need for scalable and energy-efficient data center infrastructure is a major driver boosting the modular data center market. Modular solutions offer 30-50% higher energy-efficiency and flexible scaling as per changing business needs compared to conventional facilities. Adoption of 5G technology and IoT applications is generating massive data traffic which requires robust infrastructure support at the edge, driving demand for modular edge data centers globally. Growing popularity of cloud computing and demand for optimizing CAPEX and OPEX of data centers though deployment of modular facilities is further fueling the market growth.

PEST Analysis

Political: The growing adoption of modular data centers by government organizations for critical infrastructure and defense will drive the modular data center market growth. Governments are focusing more on renewable sources of energy which makes modular data centers an attractive option.



Economic: Modular data centers provide cost savings in terms of reduced construction cost and time. As they require less upfront capital expenditure, organizations are opting more for modular data centers. Their ability to scale according to changing business needs further adds to their economic feasibility.



Social: With growing digitization and mobility trends, the demand for secure and reliable data storage is increasing rapidly. Social media platforms and OTT services require robust data center infrastructure to ensure seamless user experience. Modular data centers fulfill this demand effectively.



Technological: Modular data centers facilitate easy upgrade of IT infrastructure with minimal downtime. Their standardized, pre-assembled functional modules enable quick deployability. The integration of renewable energy sources makes modular data centers more sustainable.



Geographical regions with high market concentration

North America currently dominates the modular data center market owing to rapid digital transformation of industries. The region accounts for over 30% of the global market share. Asia Pacific is expected to provide lucrative growth opportunities due to increasing investments in cloud computing and huge internet user base in countries like China and India.



Fastest growing region

Asia Pacific is poised to be the fastest growing regional market for modular data centers during the forecast period. This is attributed to factors like growing penetration of smartphones, rising adoption of cloud services by SMEs, and supportive government initiatives for digital India. Countries like India, China, Japan, and Singapore are expected to significantly drive the demand in APAC region.

About Author:                                                                                                                                                          

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)