Modular Data Center Market Report 2025

This Modular Data Center report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The modular data center market size has grown rapidly in recent years. It will grow from $34 billion in 2024 to $39.57 billion in 2025 at a compound annual growth rate (CAGR) of 16.4%. The growth in the historic period can be attributed to need for scalable and flexible data center solutions, rapid deployment and time-to-market advantages, growth in edge computing and IoT applications, energy efficiency and green data center initiatives, adoption of containerization and virtualization technologies.

The modular data center market size is expected to see exponential growth in the next few years. It will grow to $87.93 billion in 2029 at a compound annual growth rate (CAGR) of 22.1%. The growth in the forecast period can be attributed to increased adoption in edge and remote locations, expansion of 5g networks and edge computing, demand for sustainable and eco-friendly data centers, growth in modular data center solutions for disaster recovery, integration of advanced cooling and power management technologies. Major trends in the forecast period include adoption of prefabricated and plug-and-play modular data centers, development of micro data centers for specific use cases, use of modular data centers for temporary or mobile deployments, integration of artificial intelligence for predictive maintenance, emphasis on modular data center security and compliance.

The modular data center market is expected to experience growth due to the increasing emphasis on environmental protection and energy consumption regulations. The performance of modular data centers in energy consumption, coupled with benefits in construction, planning, and space requirements, aligns with government policies. Newly constructed data centers have realized advantages in construction time, energy efficiency, and cost. These modular solutions address server changes like cloud computing, virtualization, centralization, and high density, aiming to enhance data center operational efficiency, reduce energy consumption, and facilitate rapid expansion with minimal interference. The European Commission is exploring ways to improve the energy efficiency of data centers and cloud computing, with the goal of achieving carbon neutrality in data center operations within the European Union by 2030. Consequently, the growth of the modular data center market is driven by increasing environmental protection and energy consumption regulations.

The increasing trend of digital transformation is anticipated to drive the growth of the modular data center market in the coming years. Digital transformation refers to the use of digital technologies, strategies, and capabilities to fundamentally enhance organizational operations, improve customer value delivery, and adapt to changing market conditions. In the context of modular data centers, digital transformation involves implementing advanced technologies to optimize data center operations. This includes employing real-time data analytics to enhance energy efficiency, improve cooling systems, and ensure equipment reliability. For example, in October 2024, a report from Forbes indicated that the UK AI market is valued at over $21 billion, according to the US International Trade Administration, and is expected to approach approximately $1 trillion by 2035. Currently, 68% of large companies, 33% of medium-sized companies, and 15% of small companies have adopted at least one AI technology. Thus, the rise of digital transformation is set to propel the growth of the modular data center market.

A key trend in the modular data center market is technological innovation, with major companies integrating new technologies into their products to enhance data center efficiency. Schneider Electric SE, a France-based digital automation and energy management company, launched a faster prefabricated data center service in Europe in June 2022. The 'Easy Modular Data Center All-in-One' brand offers prefabricated containerized data centers ranging from 27kW to 80kW, streamlining the ordering process and moving toward standardized configurations available on a configure-to-order (CTO) basis. This innovation aims to meet the needs of edge sites or smaller users, delivering ISO standard-sized containers in as little as 12 weeks.

Strategic partnerships and collaborations with start-ups and mid-sized companies are a prominent strategy in the modular data center market, enabling major companies to expand their product and service offerings. In June 2023, Hewlett Packard Enterprise (HPE), a US-based IT company, announced an expanded partnership with Equinix, a US-based Internet services company, to extend the HPE GreenLake private cloud portfolio at Equinix International Business Exchange (IBX) data centers. This collaboration allows for the pre-provisioning of HPE GreenLake private cloud offerings, providing customers with greater speed, agility, flexibility, and choice in their hybrid cloud strategy.

In April 2022, Equinix Inc., a US-based company specializing in digital infrastructure, including data centers and interconnection services, announced the acquisition of MainOne for $320 million. This acquisition represents Equinix's entry into the African market, enabling the company to establish a foothold in a rapidly growing region with significant digital infrastructure demands. The deal adds over 64,000 square feet of operational data center space to Equinix's platform, along with additional land for future expansion. MainOne, a Nigeria-based company, is a leading provider of connectivity and data center services in West Africa.

Major companies operating in the modular data center market include The International Business Machines Corporation, Huawei Technologies Co. Ltd., Dell Technologies Inc., Hewlett Packard Enterprise., Baselayer Technology LLC, Vertiv Group Corp., Schneider Electric SE, Cannon Technologies Ltd, Rittal Gmbh & Co. KG, Instant Data Centers LLC, Colt Group SA, Bladeroom Group Ltd., Diversitec Inc., Iron Mountain Inc., Rahi Systems Pvt Ltd., Eaton Corporation, EdgeConneX Inc., Flexenclosure AB, Green Datacenter AG, Hitachi Vantara Corporation, IO Data Centers, MDC Stockholm AB, Nortek Air Solutions, Panduit Corp., PCX Corporation, STULZ GmbH, Sunbird Software, Telenetix Private Limited, Uptime Institute LLC., Vapor IO Inc., ZTE Corporation, ZutaCore Inc.

North America was the largest region in the modular data center market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the modular data center market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the modular data center market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

A modular data center consists of portable components strategically placed in any location to offer data center functionalities such as storage and networking. The primary objective of these modular data centers is to provide a cost-effective and scalable approach to acquiring flexible computing capabilities wherever they are required.

The key components of modular data centers include solutions and services. Solutions encompass container-housed data center solutions featuring customized SME, cloud, and edge applications, along with preconfigured data center containers. These modular data centers cater to organizations of various sizes, including small and medium-sized enterprises and large enterprises, spanning sectors such as banking, financial services and insurance (BFSI), IT and telecommunications, media and entertainment, healthcare, government and defense, retail, manufacturing, and other verticals.

The modular data center market research report is one of a series of new reports that provides modular data center market statistics, including modular data center industry global market size, regional shares, competitors with modular data center market share, detailed modular data center market segments, market trends, and opportunities, and any further data you may need to thrive in the modular data center industry. This modular data center market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The modular data center market consists of sales of all-in-one modules and individual modules. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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