The modular data center market size was valued at US$ 29.26 billion in 2024 and is expected to reach US$ 89.38 billion by 2031; it is estimated to register a CAGR of 17.8% during 2025–2031. Rising demand for IoT, AI, and 5G-driven data infrastructure is likely to be a key trend in the market during the forecast period.
The global modular data center market growth has been driven by its mobility, scalability, and disaster recovery benefits. These innovations are designed to provide fast and flexible solutions, allowing businesses to deploy IT systems. Organizations require assurance regarding operational continuity and the ability to recover from potential disruptions. The market offers various solutions with robust structures that can be easily relocated or expanded to meet the specific requirements of a company. This flexibility is crucial for maintaining business continuity during disasters or other unforeseen events, ensuring the protection of their data and applications.
A modular data center is a scalable and flexible approach for managing IT infrastructure, where individual components or modules are pre-designed, prefabricated units that can be assembled and expanded as needed. Unlike traditional data centers, which require large, centralized construction projects, modular data centers are built using standardized units that can be quickly deployed and customized. This modularity allows businesses to add more capacity over time without significant disruptions or large upfront investments. Modular data centers offer several key benefits. They provide scalability, allowing companies to increase their data processing capacity with their growing needs. This makes them particularly valuable for businesses experiencing rapid growth or fluctuating demand. The modular design also ensures that businesses can expand their IT infrastructure incrementally, minimizing unnecessary costs and preventing over-provisioning. The demand for flexible and portable solutions is increasing as companies strive to adapt to evolving market needs. Modular data centers enable businesses to expand their infrastructure as needed, with less downtime compared to traditional data centers. This flexibility is especially advantageous for industries such as retail, where demand fluctuates, or for companies entering new markets. With flexibility and rapid response becoming essential for business success, modular data centers are increasingly viewed as valuable assets that help organizations effectively tackle challenges and optimize their operations.
The data center industry has experienced significant growth over the past decade, driven by increasing data consumption, cloud adoption, and the proliferation of IoT devices. According to JLL, in September 2024, the data center industry is experiencing an overwhelming demand from users. By mid-2024, the available colocation data center capacity in the US had reached 12 GW, having doubled since 2020, with a compound annual growth rate of 21%. Northern Virginia continues to lead as the largest market, accounting for nearly half of the capacity expansion since 2020 and surpassing other regions by a significant margin. However, markets in the Southern and Western US have observed faster growth. As organizations and businesses continue to expand their digital infrastructure, the need for efficient and reliable management of complex IT systems has escalated. This has given rise to the growing demand for modular data centers, which play a pivotal role in enabling seamless management of data center operations.
Governments and large enterprises are prioritizing the implementation of advanced cloud solutions and applications. Leading industry players are focusing on developing cutting-edge modular data centers equipped with immersive technologies to manage vast amounts of data. For instance, in July 2025, Vertiv, a global leader in critical digital infrastructure and continuity solutions, introduced the Vertiv MegaMod CoolChip, a prefabricated modular (PFM) data center solution equipped with liquid cooling, designed to support efficient and reliable AI computing. This solution can be customized to accommodate platforms from leading AI computing providers and scaled according to customer needs. By combining the high-quality, process-efficient approach of offsite fabrication with advanced AI-ready technologies, the MegaMod CoolChip can reduce the deployment time for AI-critical digital infrastructure by up to 50%.
Key segments that contributed to the derivation of the modular data center market analysis are offering, solutions, form factor, organization size, and industry vertical.
The regional trends and factors influencing the Modular Data Center Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Modular Data Center Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
Report Attribute | Details |
---|---|
Market size in 2024 | US$ 29.26 Billion |
Market Size by 2031 | US$ 89.38 Billion |
Global CAGR (2025 - 2031) | 17.8% |
Historical Data | 2021-2023 |
Forecast period | 2025-2031 |
Segments Covered |
By Offering
|
Regions and Countries Covered | North America
|
Market leaders and key company profiles |
The Modular Data Center Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Modular Data Center Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The modular data center market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the modular data center market are listed below:
(Source: Eaton, Press Release, 2025)
(Source: Schneider Electric, Press Release, 2024)
The “Modular Data Center Market Size and Forecast (2021–2031)” provides a detailed analysis of the market covering the areas mentioned below:
The List of Companies - Modular Data Center Market
The key players, holding majority shares, in modular data center market includes Huawei Technologies Co., Ltd., Dell Inc., Schneider Electric, Hewlett Packard Enterprise Development LP, and ABB Ltd.
The North America held the largest market share in 2024, followed by Europe.
The modular data center market was valued at US$ 29.25 billion in 2024 and is projected to reach US$ 89.37 billion by 2031; it is expected to grow at a CAGR of 17.8% during 2025–2031.
Growth in data center industry and increased mobility, scalability, and disaster recovery benefits, and rise in adoption of cloud-based services are the driving factors impacting the modular data center market.
Rising Demand for IoT, AI, and 5G-driven Data Infrastructure is the future trends of the modular data center market.
The modular data center market is expected to reach US$ 89.37 billion in the year 2031.