Modular Data Center Market is expected to reach US$ 89.38 Billion by 2031

Increased Mobility, Scalability, and Disaster Recovery Benefits to Fuel Modular Data Center Market Growth During Forecast Period 

According to our latest study, "Modular Data Center Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Offering, Solutions, Form Factor, Organization Size, And Industry Vertical, and Geography," the market 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. The report includes growth prospects owing to the current modular data center market trends and their foreseeable impact during the forecast period.

The growth of the modular data center market has been driven by key factors such as mobility, scalability, and disaster recovery capabilities. These innovations are designed to provide fast and flexible solutions, enabling businesses to establish IT infrastructure. Organizations require a high level of certainty regarding operational continuity and the ability to quickly recover from disruptions. Modular data centers offer a range of solutions with robust structures that can be easily relocated or expanded to meet specific business needs. This flexibility is crucial for ensuring business continuity during disasters or unforeseen events, safeguarding both data and applications. As businesses increasingly face dynamic market conditions, the demand for flexible and portable solutions has grown significantly. Modular data centers allow companies to scale their infrastructure on demand with minimal downtime, offering a distinct advantage over traditional data centers. This adaptability is particularly valuable for industries such as retail, where demand can fluctuate, or for organizations entering new markets. With flexibility and the ability to respond swiftly becoming vital for success, modular data centers are emerging as essential assets that enable businesses to address challenges efficiently and optimize their operations.  

Modular Data Center Market Analysis — by Geography

Source: The Insight Partners Analysis

Schneider Electric SE, PCX Holding LLC, Huawei Digital Power Technologies Co Ltd, Delta Electronics Inc, Rittal GmbH & Co KG, Eaton Corp Plc, Dell Technologies Inc, Vertiv Group Corp, Hewlett Packard Enterprise Development LP, and ABB Ltd. are among the key players profiled in the modular data center market report. Several other major players were also studied and analyzed during the market study to get a holistic view of the market and its ecosystem.

The report includes the modular data center market forecast by offering, solutions, form factor, organization size, and industry vertical. Based on offering, the modular data center market is bifurcated into solutions and services. The solutions segment held a larger modular data center market share and is expected to record a higher CAGR during the forecast period. Solutions are highly adopted by customers owing to their ready-to-deploy availability. These modular units are highly scalable and versatile and are highly suitable for rapid setup, which increases their adoption among businesses that require future extensions. They are typically housed in containers or pre-built modules, and they come with integrated cooling, power, and security systems. The growing demand for a one-stop approach that supports businesses in quickly addressing their data center needs, assembling components from multiple vendors, and eliminating the complexities of designing is driving the market.

The scope of the modular data center market report focuses on North America (the US, Canada, and Mexico), Europe (Russia, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). North America dominated the market in 2024, followed by Europe and Asia Pacific.

The Asia Pacific modular data center market is segmented into Australia, China, Japan, India, South Korea, and the Rest of Asia Pacific. In terms of revenue, China held the largest modular data center market share in Asia Pacific. The market is driven by the rise of the data center industry which is growing rapidly and shows no signs of slowing down. Digitalization, cloud computing, 5G networks, the Internet of Things, and regulations requiring local data storage are driving the market growth. In recent years, the region's data center infrastructure has grown significantly. The emergence of generative AI tools, such as ChatGPT, has increased demand for data centers, which have significant critical IT capacity. Amazon Web Services, Microsoft, and Google are the leading providers of hyperscale data centers, accounting for 60% of the global capacity. During Q1/2024, the data center in Asia Pacific purchased US$ 1.7 billion, up 81% QoQ and 325% YoY, which represented 80% of the overall investment volume for 2023. With the rise in data center capacity and the need for energy efficiency, the demand for modular data centers is expected to grow in Asia Pacific during the forecast period. An alliance of institutional investors, including Hillhouse, Rava Partners, Boyu, Princeville Capital, and Tekne Capital, purchased a 43.9% stake in GDS's worldwide data center business through a US$ 587 million Series A convertible preferred share subscription. The portfolio includes 330 MW of data center capacity in operation or under construction outside of Mainland China, as well as 340 MW for future expansion in critical areas such as Hong Kong, Singapore, Malaysia (Johor), and Indonesia (Batam).

China consists of 400 data centers, and the majority of these facilities are located in and around mainland China. The country is home to numerous major cities that play an important role in the data center industry. Shanghai, Beijing, Guangzhou, Shenzhen, and Chengdu are some of China's largest and most significant cities for data center infrastructure and colocation services. Shanghai, with its flourishing economy and reputation as a worldwide financial hub, attracts data center investments. It has a strong telecommunications network, a consistent power supply, and a friendly business climate, making it a great choice for colocation services in China. Beijing is a significant technological and innovation powerhouse. It has multiple data centers and offers access to a large pool of IT workers. Beijing's strategic location and excellent infrastructure make it an appealing option for both local and foreign companies seeking to build a presence in the modular data center market in China.

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