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Modular Data Center Market

The market for Modular Data Center was estimated at $32.2 billion in 2024; it is anticipated to increase to $93.3 billion by 2030, with projections indicating growth to around $226 billion by 2035.

Report ID:DS1103035
Author:Ranjana Pant - Research Analyst
Published Date:
Datatree
Information Technology
IT Services & Managed Solutions
Modular Data Center
Share
Connect
Report Price: $4,200
Report Summary
Market Data
Methodology
Table of Contents

Global Modular Data Center Market Outlook

Revenue, 2024

$32.2B

Forecast, 2034

$189B

CAGR, 2025 - 2034

19.4%

The Modular Data Center industry revenue is expected to be around $38.4 billion in 2025 and expected to showcase growth with 19.4% CAGR between 2025 and 2034. The modular data center (MDC) market serves as a fundamental element of contemporary data center infrastructure because enterprises and cloud service providers who make up 76.6% of end user demand seek quick deployment and flexible capacity and lower capital expenses for their worldwide operations. Organizations spend most of their budget on Solutions components because they want pre engineered systems that integrate all necessary elements to shorten construction times and create standardized performance and simplified maintenance for their multi site networks. The market experiences growing demand because organizations need to support digital transformation and cloud computing and edge computing and always on digital services and improved operational efficiency and resilience.

A modular data center consists of pre engineered factory built facilities which combine standardized building blocks that unite IT racks with power distribution systems and security features and energy efficient cooling solutions into a compact scalable design. The systems arrive at sites as prefabricated data center modules and containerized data center units which enable fast installation and connection and expansion based on workload requirements and business expansion plans. The system enables fast deployment of standardized designs which supports high density computing operations and built in redundancy to help operators match capacity with demand while fulfilling strict availability and compliance standards. The main uses of modular data centers include enterprise IT consolidation and cloud availability zones and telecom and 5G points of presence and remote and industrial sites and disaster recovery locations. The combination of performance and scalability and cost effectiveness in MDC solutions drives their adoption for enterprise IT consolidation and cloud availability zones and telecom and 5G points of presence and remote and industrial sites and disaster recovery locations. The growing demand for distributed edge computing and hybrid and multi cloud systems and AI workloads and sustainability standards drives organizations to adopt MDC which leads to advancements in integrated monitoring systems and intelligent automation capabilities.

Modular Data Center market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2024-2034
Modular Data Center Market Outlook

Market Key Insights

  • The Modular Data Center market will expand from $32.2 billion in 2024 to reach $190 billion by 2034. The market will experience a 19.4% annual growth rate because of increasing requirements from Telcom Edge Deployments and Cloud Data Centers and Enterprise Modernization initiatives.

  • The Modular Data Center market shows its highest growth potential through the United States and China which maintain their positions as leading markets with 18.6% to 27.2% CAGR from 2024 to 2030.

  • The market research predicts Brazil, Saudi Arabia and Indonesia will experience the highest growth rates at 14.5% to 20.2% CAGR.

  • The Modular Data Center market will experience $16 billion growth through 2030 because of the Transition known as Shift To Distributed Edge.

    .

  • The Modular Data Center market will expand by $157 billion during 2024-2034 while Cloud Service Providers & Enterprises Application manufacturers will control an increasing share of the market.

  • With

    rapid edge computing expansion and 5g-driven low-latency services accelerating demand for scalable modular data center capacity, and

    Intensifying sustainability regulations and energy-cost pressures favoring energy-efficient, prefabricated modular data center architectures worldwide, Modular Data Center market to expand 489% between 2024 and 2034.

modular data center market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Modular Data Center - Country Share Analysis

Opportunities in the Modular Data Center

European automotive and industrial manufacturers now use AI and digital twins and autonomous testing at a faster rate which creates dense compute clusters that exceed the capacity of their current server rooms. The modular data center solutions enable fast GPU capacity growth in factories while upholding both power efficiency and environmental sustainability requirements. The worldwide market value will also expand from USD 23.76 billion in 2025 to reach USD 51.44 billion by 2030 while service revenue will increase from USD 8.44 billion to USD 26.70 billion which indicates substantial growth potential for high density liquid cooled modules in major manufacturing centers.

Growth Opportunities in North America and Asia-Pacific

The North American modular data center market operates mainly through cloud service providers who choose prefabricated and containerized data centers because their fast growing AI ready infrastructure and high density computing needs require these architectures for new availability zones and edge locations and regional backup sites; the market demands standardized modular data center platforms which can be configured for liquid cooling and GPU workloads and low latency edge computing nodes that need fast deployment in metropolitan and secondary cities. The established global manufacturers and design build firms operating in this market force new companies to create unique value through their lifecycle services and sustainable design approaches and DCIM integration. The main factors driving regional growth include aging facilities that need modular updates and enhanced energy standards and data protection requirements and fast deployable infrastructure needed for 5G services and hybrid cloud and colocation operations.
The Asia Pacific region sees telecom service providers as its leading user base for modular data center adoption because they need to build out 5G networks and edge computing infrastructure across developed and developing digital markets which drives demand for small modular data center units at cell sites and aggregation nodes and regional hubs; The most promising business opportunities emerge from delivering affordable modular solutions which handle harsh environmental conditions and deploy quickly in limited urban region's and support cloud services for expanding internet user bases in fast growing markets; The market competition between local vendors who provide customized engineering and flexible payment options and international suppliers forces providers to build strategic partnerships for market entry and develop industry specific solutions with carriers and manufacturing and government sectors as their main focus. The main drivers for this region stem from its fast paced digital transformation efforts and smart city development and rising mobile data usage and requirement for disaster resistant modular data centers that provide flexible IT infrastructure solutions.

Market Dynamics and Supply Chain

01

Driver: Rapid edge computing expansion and 5G driven low latency services accelerating demand for scalable modular data center capacity

The growing adoption of edge computing in smart manufacturing and autonomous vehicles and digital retail requires fast deployable IT capacity at local sites which makes modular data centers the preferred solution. Organizations together with service providers need prefabricated modules that function as micro data centers for remote and limited sites to support real time analytics and latency sensitive applications near end users. The deployment of nationwide 5G networks has also created new bandwidth intensive applications which require distributed processing and network edge resilience to support AR/VR and industrial IoT services. Operators can also deploy capacity through small standardized increments using modular data center designs which include containerized data centers with integrated power systems and cooling solutions and high density computing racks. The combination of edge computing and 5G network convergence has also triggered organizations to build adaptable modular infrastructure systems for their telecom and cloud and delivery operations.

Operators must also upgrade their outdated facilities because rising energy costs and tighter environmental standards demand the implementation of efficient MDC. The design of prefabricated MDC includes optimized power usage effectiveness and integrated monitoring systems and advanced cooling systems which work together to reduce energy waste in high density computing environments. The modular design approach enables operators to achieve faster compliance with new carbon reduction standards through its built in renewable ready features and optimized power distribution and right sized UPS systems. The sustainability oriented solution helps cloud and colocation and enterprise providers decrease operational expenses while increasing their capacity through MDC deployment for green digital infrastructure expansion.

02

Restraint: High upfront capital expenditure and financing constraints slow adoption of scalable modular data center solutions

The high costs of prefabricated data center modules and advanced cooling systems and energy efficient infrastructure exceed mid sized enterprise budgets which causes project delays and forces them to lease space from colocation data center operators instead of building their own modular data centers thus reducing hardware sales and integrator revenue. The restricted availability of funding across different markets and edge computing applications extends sales periods and decreases transaction values which leads to unstable revenue streams and reduced market growth for modular data center providers.

03

Opportunity: Accelerating 5G edge computing deployments among rural North American telecom operators driving modular data center investments and Growing digital banking adoption among Southeast Asian small enterprises boosting demand for prefabricated MDC

The traditional facility network fails to provide adequate service to rural and semi urban areas across North America because 5G networks and edge computing need processing facilities to be located near subscribers. Telecom operators can establish compact containerized modular data center units at base stations to deliver support for video analytics and IoT applications and private enterprise networks that need low latency. The use of standardized prefabricated data center designs enables vendors to deliver fast deployment and permitting processes which benefits companies that focus on ruggedized edge modules and lifecycle services for remote areas with harsh conditions and extreme weather conditions.

The fast growing small and mid sized enterprises across Southeast Asia now use digital banking and e commerce and real time payments but their local infrastructure fails to meet hyperscale cloud requirements. Financial institutions together with fintech companies now require regional colocation data center capacity which offers both stable pricing and fast deployment capabilities. Financial institutions use prefabricated MDC to build compliant facilities in secondary cities which support their hybrid cloud infrastructure. The Philippines together with Vietnam and Indonesia will experience the most significant growth because their urban areas need expandable MDC solutions to support increasing transactions and changing regulatory requirements.

04

Challenge: Regulatory uncertainty, interoperability issues and legacy integration challenges undermine confidence in MDC investments

The implementation of complex regional data sovereignty rules and safety standards and environmental compliance requirements prevents companies from creating standardized MDC designs which results in project redesigns and longer approval processes and increased non recurring costs that reduce profitability and discourage investment. The market experiences limited large scale deployments because enterprises and hyperscale cloud providers avoid workload re architecture which blocks repeat business opportunities and decreases long term contract worth thus controlling market growth below projections and maintaining conservative market dynamics.

Supply Chain Landscape

1

IT Infrastructure

Dell TechnologiesHuawei Technologies
2

Power Cooling

VertivSchneider Electric
3

Modular Data Center

Bladeroom GroupHuawei TechnologiesDell Technologies
4

Edge Computing Users

cloud service providerstelecom operatorsfinancial services
Modular Data Center - Supply Chain

Use Cases of Modular Data Center in Telcom Edge Deployments & Cloud Centers

Telcom Edge Deployments : The main deployment of modular data centers by Telcom Service Providers occurs through containerized data center modules which operate at 5G base stations and aggregation sites and regional facilities to deliver standardized edge computing solutions with fast deployment times and minimal latency. The market segment generates 7.53 billion dollars in revenue during 2025 with a projected 21.4% annual growth rate from 2026 to 2030. The market requires durable high performance systems which Huawei Technologies leads through its telecom grade integrated power and cooling and IT solutions. The market share of Vertiv and Schneider Electric grows through their combined power and thermal solutions which deliver optimal performance for outdoor and unmanned sites. The Bladeroom Group stands out through its factory tested efficient enclosures which handle demanding environmental conditions. Dell Technologies expands its market presence through its ability to integrate scalable compute and storage solutions into these modular units. The complete Solutions segment leads the market with 73.8% market share because customers prefer them over Service offerings which account for 26.20% of the market.
Cloud Data Centers : The Cloud Service Providers construct their data center campuses through prefabricated building blocks to support high density computing and AI workloads which deliver predictable performance and enhanced energy efficiency and faster deployment times across worldwide locations; this end user segment will produce $11.17 billion in revenue during 2025 while showing 23.8% annual growth from 2026 to 2030 by selecting standardized turnkey solutions instead of customized construction; Schneider Electric and Vertiv lead the market through their complete power and cooling and monitoring solutions while Huawei Technologies leads the market with its high capacity modular halls for major cloud regions and Dell Technologies provides value through its integrated server and storage and network solutions within these modules and Bladeroom Group specializes in energy efficient scalable halls which help cloud operators achieve sustainability and resiliency and fast market entry through its 73.8% Solutions market dominance.
Enterprise Modernization : The adoption of MDC designs by enterprises enables them to transform their on premises and colocation facilities through indoor prefabricated data center rooms and compact containerized data centers for branch sites and disaster recovery and public cloud connectivity which enables quick deployment and reliable operations and IT resource optimization for business expansion; this market segment will generate $13.49 billion in revenue during 2025 while showing a 13.83% annual growth rate until 2030 through solution based purchasing with additional service support for design and integration and maintenance needs. Dell Technologies leads the market through its integrated infrastructure solutions and lifecycle management services while Schneider Electric and Vertiv maintain dominance in mission critical facilities through their resilient power and cooling solutions. Huawei Technologies operates successfully in region's that focus on affordable modular deployment solutions. The Bladeroom Group stands out for its expertise in building efficient factory made rooms which help businesses control expenses while ensuring secure IT expansion.

Recent Developments

The modular data center market shows growing adoption because edge computing and AI workloads and hyperscale cloud expansion. Enterprises select prefabricated containerized data center solutions because they offer fast deployment and flexible growth and lower initial investment costs. The market now focuses on developing sustainable MDC through green technologies which combine liquid cooling systems with advanced power management solutions to fulfill environmental goals.

January 2024 : Schneider Electric expanded its European manufacturing sites for prefabricated modular data center solutions to boost production capacity of power and cooling and IT modules which will reduce delivery times for modular data center and edge data center projects and enable quick deployment of containerized data centers for cloud and enterprise customers.
October 2023 : Vertiv launched Vertiv TimberMod as a prefabricated modular data center platform which replaces steel structures with mass timber to reduce construction time and decrease environmental impact for hyperscale and colocation operators.
September 2023 : Huawei Technologies presented new smart modular data center and power solutions at Huawei Connect 2023 which integrates prefabricated data center modules with AI powered energy management and high density racks to boost modular data center adoption in emerging markets for cloud and 5G and edge data center operations.

Impact of Industry Transitions on the Modular Data Center Market

As a core segment of the IT Services & Managed Solutions industry, the Modular Data Center market develops in line with broader industry shifts. Over recent years, transitions such as Shift To Distributed Edge and Convergence Of Sustainability And AI have redefined priorities across the IT Services & Managed Solutions sector, influencing how the Modular Data Center market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Shift To Distributed Edge

The Modular Data Center market is poised for a significant transformation, projected to grow by $16 billion through 2030, driven by the Shift to Distributed Edge. This transition enables organizations to move from centralized large facilities to agile, prefabricated, and containerized edge data centers, facilitating rapid deployment. Telecommunications operators are increasingly deploying small MDC modules at cell sites to enhance 5G network performance, significantly reducing latency for streaming, gaming, and autonomous systems. Additionally, edge computing nodes in manufacturing environments enable real time analytics for robotics and predictive maintenance, eliminating the need for continuous hyperscale data center backhaul. This strategic shift not only accelerates market entry but also standardizes infrastructure, enhancing operational reliability across multiple locations, thereby positioning organizations to capitalize on emerging opportunities in a rapidly evolving digital landscape. This industry transition is expected to add $16 billion in the industry revenue between 2024 and 2030.
02

Convergence Of Sustainability And AI

The modern enterprise data center now focuses on developing modular facilities which use energy efficient high density computing systems to run demanding AI applications and complex analytics operations. Financial institutions use standardized prefabricated data centers with liquid cooling and smart power management systems to fulfill their sustainable IT goals and meet regulatory requirements. The healthcare sector uses modular halls within colocation facilities to build out imaging and genomics and telemedicine services at a fast pace while delivering exact capacity matches to clinical requirements which minimizes capital waste and operational threats.

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