The modular data center market is expected to grow at a CAGR of 9.49%, reaching a market size of US$36.744 billion in 2030 from US$23.349 billion in 2025.
A considerable quantity of data is generated every day, and that rate is only growing as the number of internet users grows. To process such a vast amount of data, companies use a facility known as a data centre that holds an institution's combined IT operations and equipment for data storage, processing, and distribution. A modular data centre system is a portable data centre capacity deployment solution that may be installed in almost any place where data capacity is required. These systems comprise purpose-built modules and components that provide expandable data centre capacity and various power and cooling choices. Because modular data centres are movable and made from conventional containers, they offer much operational flexibility. Hence, they serve as an excellent alternative to organizations needing faster and more economical data solutions. Recent advancements in the modular data centre market have seen growth in providing cloud computing solutions to help users protect their data.
The location analysis is crucial to the modular data centre installation process. Because of geographical difficulties, many organizations that require data centre solutions cannot deploy modular data centres. As a result, modular data centres cannot penetrate a wide range of markets. The provisions for transportation of data modules, power and fibre connectivity, location-related latency, interconnectivity to network systems, building regulations, etc., play a significant role in the modular data centre market. For instance, locations that experience a lot of precipitation also require proper physical qualities of the data centre enclosure to prevent water damage, leakage, and rusting. Though most modular data centre companies provide cloud storage to protect data from getting lost, they require more power and cooling than regular data centres, limiting an organization’s ability to install it.
While some climates may be unsuitable for modular data centres, they positively influence some markets. According to an IEEE report, the data centre's Energy Reuse Effectiveness rises when the ambient (outside) temperature drops and the server inlet-outlet temperature differential rises. Furthermore, data indicate that, particularly in scorching and humid areas, using passive cooling techniques (e.g., DEC and free air cooling) reduces data centre heating, ventilation, and air-conditioning energy use.
With an increase in data consumption and usage, there arises a need for proper data storage. Due to the increase in data breaches and hacking, data servers need to be safeguarded from such risks. Modular data centres come with the added advantage of cloud computing, which stores data in a cloud-based environment to serve as a recovery tool in case of a data breach or loss. These centers give cloud solutions such as the data center infrastructure, cloud hardware, storage, software, templates, supervision and many more in a prefabricated, compact solution. Cloud services are offered by data center providers (e.g., Amazon and Microsoft) as well as by third-party cloud computing companies (e.g., Oracle and VMware). These solutions make modular data centres an ideal choice for organizations.
There has been an ever-increasing need for proper data centre infrastructure, and companies are finding it difficult to keep up with the trend due to rising energy expenses. As a result, the requirement for government expenditure increases. For instance, Kuwait aspires to be a "financial and commercial" centre in the Middle East as part of the ‘Vision 2035’ plan. Government agencies and the commercial sector are migrating to digital platforms, which is accelerating the development of cloud, collocation, and managed data centres and increasing the data centre industry. Greenfield construction dominates the Kuwaiti market, which is also seeing the rise of on-site modular data centre construction. The market is dominated by VRLA battery-based UPS systems, which account for more than 90%. Most data centres include N+1 redundancy UPS systems, which may be expanded to 2N redundancy depending on customer needs.
While there are many benefits to having a data center, most users tend to still use on-premises services. High implementation costs and a generally low level of awareness about modular data centers, which are mainly in rural settings and beyond the reach of IT services or network connectivity, can stymie this market’s growth. Additional elements like data center virtualization and restrictive forms are anticipated to impede market expansion.
The expansion of cloud computing, mobile broadband, and big data analytics drive the need for new data centre infrastructure in this area. North America is known for having a large number of data centres. As more businesses move from providing hardware-based services to software-based ones, it is anticipated that this market will present opportunities for data centre installation. To optimize infrastructure, organizations are searching for modular services that enable them to choose the desired service from an integrated portfolio. Moreover, the online catalogs have several services included in a basic setup. These services enable businesses to lower the cost of starting a business. IBM's Integrated Managed Infrastructure Service provides a good example of such a service.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Modular Data Center Market Size in 2025 | US$23.349 billion |
| Modular Data Center Market Size in 2030 | US$36.744 billion |
| Growth Rate | CAGR of 9.49% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in Modular Data Center Market |
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| Customization Scope | Free report customization with purchase |
The modular data centre market is analyzed into the following segments: