Modular Data Center Market 2030: Recent Trends, Key Opportunities, Growth Demand, Drivers and Future Scope

Modular Data Center Market by Solutions (All-in-one and Prefabricated Modules (IT, Power, Cooling)), Form Factor (ISO Containers (20 feet, 40 feet), Enclosures, Skid-mounted), Build Type (Semi & Fully-prefabricated) - Global Forecast to 2030.
The Modular Data Center Market [https://www.marketsandmarkets.com/Market-Reports/modular-data-centers-market-996.html?utm_campaign=modulardatacentersmarket&utm_source=abnewswire.com&utm_medium=paidpr] is anticipated to expand from USD 29.93 billion in 2024 to USD 79.49 billion in 2030 at a Compound Annual Growth Rate (CAGR) of 17.7%. Because modular data centers can be deployed more quickly than traditional data centers and are readily adaptable and expandable, the demand for them is growing. With the help of these pre-engineered systems, businesses can quickly set up data centers across several sites while ensuring peak performance in every situation. Because they allow a business to grow without necessarily affecting its operations, modular data centers are both economical and energy-efficient. This adaptability aids businesses in managing complex and distributed infrastructures, meeting emerging technological demands, and maintaining competitive advantages.

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"As per form factor, skid-mounted is expected to grow at the highest CAGR during the forecast period."

Skid-mounted systems are another flexible and easy to implement solution in the modular data center market. These systems are permanently mounted on a strong metallic structure that enables them to be easily connected to other machineries and electrical appliances in an organization. Skid-mounted systems are another type of systems that have the benefit of being pre-built in a factory, leaving little to setup on site. This pre-construction approach is not only beneficial in the installation process but also reduces the construction time. When used as pre-fabricated structures, skid-mounted modules can provide a convenient way to grow or create new data centers. They normally occupy less space than conventional enclosures, hence, enabling efficient use of the available space. Furthermore, these systems are normally cheaper and usually developed to fit certain operations of an organization. For organizations that need standby systems or require a solution for permanent installations, skid-mounted systems are a cost-effective option to improve the data center infrastructure.

"As per deployment type, indoor holds the largest share during the forecast period."

Modular data centers for indoors are specifically planned to be implemented within the premises of buildings, including warehouses or office spaces, and take advantage of the available space for the IT facilities. These units are typically characterized by standard containerized modules that can be easily incorporated into existing structures. One of the major benefits of indoor deployments is that the environment is controlled, which is especially important for the performance and durability of some crucial equipment. Moreover, indoor installations can leverage pre-existing power, cooling, and networking infrastructure, thereby requiring less investment in these areas. However, these solutions can face issues such as space constraints, which can hinder expandability and future growth. Additionally, indoor environments may require enhanced security measures to protect sensitive data and equipment from unauthorized access. Modular data centers designed for indoor environments are preferred by organizations that need to maximize their premises while ensuring that operational capacity is not compromised, thus achieving an optimal balance between flexibility and efficiency in their IT solutions. In general, modular data centers for indoor use meet the requirements of organizations that need to improve their infrastructure without interrupting business processes.

"As per region, Asia Pacific will grow at the highest CAGR during the forecast period."

The Asia Pacific region, comprising China, Japan, Australia, and New Zealand, has witnessed the fastest growth in the modular data center market over recent years, propelled by increasing demand for AI and cloud computing infrastructure. China's investment in data center infrastructure has surged, with a staggering $61 billion allocated to support the rising demand for AI chips. Major companies like Alibaba are expanding their capacity, aiming for a 200 MW increase in hyperscale facilities across Beijing and Shanghai.

In Japan, significant investments are transforming the data center landscape. Oracle has committed $8 billion to bolster cloud computing and AI capabilities, while Microsoft is investing $2.9 billion to enhance its data center operations, reflecting the region's focus on digital transformation. Australia is also actively contributing to this growth, with DXN delivering modular data centers that tackle supply chain challenges while emphasizing sustainability and innovation. The rapid digital transformation across the Asia Pacific has made it the fastest-growing market for modular data centers globally, driven by government initiatives, robust cloud adoption, and escalating data consumption. As companies adapt to this evolving landscape, the region is well-positioned to solidify its dominance in the global data center sector, paving the way for continued advancements and expansion in the years ahead.

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Unique Features in the Modular Data Center Market

A standout feature of modular data centers is their ability to scale rapidly based on business needs. Unlike traditional facilities, these data centers can be expanded by adding prefabricated modules, enabling enterprises to adjust capacity with minimal downtime and cost. This flexibility makes them attractive for industries with dynamic data demands.

Modular data centers are designed for quick deployment compared to conventional builds that may take years. Prefabricated units can be manufactured, shipped, and installed within weeks or months, significantly reducing time-to-market and ensuring faster IT infrastructure availability for organizations.

These data centers are engineered with advanced cooling technologies, energy-efficient power systems, and optimized layouts. Many modular solutions incorporate renewable energy integration and green building practices, supporting enterprises' sustainability and carbon reduction goals while lowering operational costs.

Unlike traditional setups, modular data centers can be deployed in remote or underserved regions where building large-scale facilities is not feasible. Their portability makes them ideal for industries such as mining, oil & gas, defense, and disaster recovery, ensuring robust IT support in challenging environments.

Major Highlights of the Modular Data Center Market

The rise of IoT, AI, and 5G has accelerated the adoption of edge computing, creating a strong demand for modular data centers. Their ability to be deployed closer to end-users ensures low latency, faster data processing, and improved service delivery, making them crucial for edge deployments.

Industries such as BFSI, healthcare, IT & telecom, energy, and defense are increasingly adopting modular data centers to support digital transformation. Their flexibility and scalability make them suitable for handling varying workloads across sectors.

With rising concerns about carbon emissions, enterprises are prioritizing green IT infrastructure. Modular data centers integrate advanced cooling technologies, renewable energy sources, and energy-efficient designs, positioning them as sustainable alternatives to traditional facilities.

The modular approach allows organizations to expand capacity incrementally, reducing upfront capital expenditures. This pay-as-you-grow model is gaining popularity, especially among SMEs and enterprises seeking cost-effective IT infrastructure without long construction timelines.

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Top Companies in the Modular Data Center Market

Some of the key players operating in the Modular Data Center Market are - Dell (US), Vertiv (US), Schneider Electric (France), Huawei (China), Eaton (US), Johnson Controls (US), Delta Electronics (Taiwan), ABB (Switzerland), Rittal (Germany), Stulz (Germany) and Hubbell (PCX) (US).

Dell

Dell Technologies is a prominent player in the modular data center market, leveraging its extensive expertise in infrastructure solutions and advanced technology to cater to the evolving demands of businesses worldwide. The company has a complete portfolio of modular data center solutions that are scalable, flexible and energy-efficient. Dell's systems are most relevant for those organizations that have need to make the best use of the limited space and also require high performance from the systems in use. Through hyper-converged infrastructure, edge computing, and artificial intelligence, Dell provides customers with an opportunity to implement scalable data centers based on business requirements and operational conditions.

Dell's commitment to innovation and customer-centric solutions has positioned it as a preferred partner for enterprises across various sectors, including healthcare, finance, and telecommunications. The company emphasizes sustainability through its modular designs, which facilitate energy efficiency and reduced carbon footprints. Additionally, Dell collaborates with key technology partners to enhance its offerings, providing customers with comprehensive solutions that include networking, security, and management capabilities. This strategic approach not only helps Dell to build up its market power but also responds to the increasing customers' requirements for the flexible and robust computing platforms in the modern world of globalization and informatization. Since many businesses are transitioning to using modular data centers, Dell is prepared to provide the best technology and service possible.

Vertiv

Vertiv is a global specialist in the critical infrastructure that supports the modern digital economy and is committed to protecting the availability, reliability, and resilience of vital applications. Vertiv is very much conscious of its commitment to innovation and productivity and, thus, applies technological innovations and principles of mass production to its product offerings, which include modular data center solutions fitting the dynamic needs of businesses. The company's approach is to provide easy to deploy and scalable modular solutions, for example, the Vertiv SmartMod, that does not sacrifice performance and safety, tackles the urgency of high density computing and reduces wasted capital. Vertiv has adopted the following strategies in order to be competitive in the modular data center market. They emphasize pre-integration and prefabrication, significantly reducing build times and allowing customers to scale their operations quickly. Additionally, Vertiv's commitment to energy efficiency helps clients lower their Power Usage Effectiveness (PUE) and operating costs while minimizing environmental impact. With over 1,500 modules shipped and more than 800 sites worldwide, Vertiv's expertise in delivering flexible and reliable solutions positions them as a trusted partner for enterprises needing additional capacity close to existing facilities. This strategic approach not only enhances agility but also supports stakeholders in managing risks and budgets effectively, ultimately driving greater profitability and efficiency.

Schneider Electric Schneider Electric SE is a French multinational corporation specializing in digital automation and energy management. Founded in 1836, the company has evolved into a global leader, offering products and services across various sectors, including building automation, industrial control systems, and critical power solutions. Schneider Electric is known for its commitment to sustainability and innovation, aiming to drive energy efficiency and digital transformation worldwide.

Huawei Huawei is a Chinese multinational technology company headquartered in Shenzhen, Guangdong. Established in 1987, it has become a global leader in telecommunications equipment and consumer electronics. Huawei offers a wide range of products, including smartphones, tablets, laptops, and telecommunications infrastructure. The company is also a significant player in 5G technology and has been involved in various initiatives to advance artificial intelligence and cloud computing.

Eaton Eaton is a multinational power management company with operational headquarters in Dublin, Ireland, and a corporate office in Beachwood, Ohio, USA. Founded in 1911, Eaton provides energy-efficient solutions to manage electrical, hydraulic, and mechanical power. Its products and services are utilized in various industries, including automotive, aerospace, and electrical sectors. Eaton is committed to improving the quality of life and the environment through the use of power management technologies and services.

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