The containerized data center market is anticipated to show steady growth during the forecast period.
A modular data center, also referred to as a containerized data center, is a pre-built structure in the form of a container that houses IT infrastructure. This specialized shipping container is specifically designed to accommodate various IT equipment such as servers, storage devices, networking gear, uninterruptible power supplies, generators, and cooling equipment.
A data center serves as a physical facility where computing machines and their associated hardware are stored. It houses the necessary computing infrastructure for IT systems, including servers, data storage drives, and network equipment. Increased investment in scalable data center solutions, growing requirements for data centers that are energy efficient, and recent developments in data centers are driving the containerized data center market growth.
The increasing need for data storage, processing, and analysis is creating significant challenges for data centers. Companies are finding it difficult to cope with the rapid expansion of data, necessitating data center solutions that are not only efficient but also flexible. Containerized data centers are the ideal solution for this situation, as their scalability aligns perfectly with the escalating demand.
Energy-efficient data centers, equipped with intelligent cooling mechanisms and high-performance servers, effectively minimize power requirements. Consequently, they prove to be an excellent fit for containerized data centers, which have limited space to accommodate bulky cooling systems. This synergy enables quicker deployment, reduced energy expenses, and a diminished ecological impact.
For instance, according to a KDDI-published article in March 2023, a remarkable achievement has been made in the field of liquid cooling system testing, as it has successfully demonstrated a staggering 94% reduction in energy consumption for cooling servers in data centers. KDDI Corporation (KDDI), Mitsubishi Heavy Industries, Ltd. (MHI), and NEC Networks & System Integration Corporation (NESIC) collaborated to conduct a demonstration test on an immersion cooling system. This test aimed to explore the potential use of liquid cooling for IT components in a hyper-scale data center. The objective was to develop sustainable data centers that would contribute to decarbonization efforts. The test protocol resulted in the successful achievement of Tier 4 stable operation in a liquid-cooled unit.
Hybrid cooling systems, which integrate both air and immersion cooling, are being introduced for containerized data centers. The advancement enhances operational efficiency and accommodates various server requirements within a unified module. Consequently, this emerging trend is expected to expedite deployment and augment the overall attractiveness of containerized data centers.
For Instance, according to a Varanium published article in February 2023, Varanium Cloud, an Indian digital technology company, recently inaugurated a cutting-edge data center in Kudal, Maharashtra. This innovative containerized facility is situated within shipping containers, allowing for convenient transportation. Positioned in close proximity to users, edge data centers provide rapid data processing capabilities for various applications such as cloud services and internet connectivity, particularly in remote regions.
Asia Pacific is anticipated to account for a significant share of the containerized data center market due to favorable developments in the region. For instance, according to a Vantage Published article in October 2023, it states that Vantage Data Centers is increasing its presence in the Asia Pacific by establishing a new 16MW data center in Taipei, Taiwan. That signifies the company’s debut in the largest data center market in the region. The five-story facility, TPE1, is set to commence operations in mid-2024 and will provide 215,000 square feet of space supported by the local utility Taiwan Power Company.
Efficient energy features are beneficial, but effectively controlling the heat produced by IT equipment in a confined area can pose challenges. It is essential to maintain adequate cooling to avoid overheating and potential equipment malfunctions.
Containerized units have a reduced footprint in comparison to traditional data centers, which results in limited processing power and storage capacity. This may not be ideal for businesses that require extensive computational capabilities.