Modular Data Center Market Report 2031 by Segments, Geography, Dynamics, Recent Developments, and Strategic Insights

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.

Modular Data Center Market Analysis

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.

Modular Data Center Market Overview

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.

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Modular Data Center Market: Strategic Insights

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Modular Data Center Market Drivers and Opportunities

Growth in Data Center Industry

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.

Rise in Adoption of Cloud-based Services

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%.

Modular Data Center Market Report Segmentation Analysis

Key segments that contributed to the derivation of the modular data center market analysis are offering, solutions, form factor, organization size, and industry vertical.

• In terms of offering, the market is bifurcated into solutions and services.
• Based on solutions, the market is segmented into prefabricated modules and all-in-one solutions.
• In terms of form factor, the market is divided into ISO containers, skid-mounted systems, and enclosures.
• On the basis of the organization size, the market is bifurcated into SMEs and large enterprises.
• By industry vertical, the market is divided into IT and telecom, BFSI, government, healthcare, manufacturing, media and entertainment, and others.

Modular Data Center Market Share Analysis by Geography

• The modular data center market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2024, followed by Europe and Asia Pacific.
• The modular data center market in North America is segmented into the US, Canada, and Mexico. The rapid expansion of data-intensive applications and cloud computing has resulted in a considerable increase in the number of data centers in the region. As per the 2024 CBRE North America Data Center Trend Analysis, the top seven data center markets in North America are operational in the US, i.e., in Northern Virginia, Dallas / Fort Worth, Silicon Valley, Chicago, Phoenix, New York Tri-State Area, and Atlanta. The rapid adoption of cloud computing, IoT, AI, and 5G technologies is fuelling the demand for scalable and efficient data centers in North America. These technologies require robust, flexible, and reliable infrastructure, making modular data centers an ideal solution. Modular data centers provide the scalability needed to accommodate the growing data volumes, enabling businesses to scale up their infrastructure quickly to meet changing demands.
• The need for low-latency, localized data processing is becoming more critical, especially with the rise of IoT and real-time data applications. Modular data centers offer a solution by allowing businesses to deploy smaller, geographically distributed units that reduce latency and improve performance. This is particularly important in industries such as automotive, healthcare, and manufacturing, where real-time data processing is crucial for operational efficiency. Similarly, the growing trend of edge computing in North America is a key driver of modular data center adoption. As businesses push for greater computing power closer to the source of data generation, modular data centers offer the flexibility and quick deployment capabilities required for edge computing applications.
• Vertiv Group, Schneider Electric, and Emerson are a few of the prominent companies in the modular data center market in Europe. These payers are taking various initiatives in developing modular data centers. In November 2024, Schneider Electric, the leader in the digital transformation of energy management and automation, significantly scaled the manufacturing and production capacity of its Barcelona prefabricated data center factory, increasing it from 7,000 m2 to 12,000 m2 in response to accelerated customer demand for prefabricated, high-compute workload data center solutions. The factory and large-scale logistics center, located in Sant Boi de Llobregat, Barcelona—one of the primary locations in Europe for the design, production, and integration of Schneider Electric’s EcoStruxure Modular Data Centre portfolio—provides an additional 5,000 m2 of dedicated, production space, meeting accelerated customer requirements for speed to market, predictability, and resilient, data center solutions.

Modular Data Center Market Regional Insights

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.

Modular Data Center Market Report Scope

Modular Data Center Market Players Density: Understanding Its Impact on Business Dynamics

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:

1. Schneider Electric SE
2. PCX Holding LLC
3. Huawei Digital Power Technologies Co Ltd
4. Delta Electronics Inc
5. Rittal GmbH & Co KG
6. Eaton Corp Plc

Disclaimer: The companies listed above are not ranked in any particular order.

Modular Data Center Market News and Recent Developments

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:

• Eaton and CTS Nordics—a business that designs and builds data centers—are constructing a new NordicEPOD facility in Oslo. NordicEPOD's cutting-edge facility is now producing standardized power modules known as EPODs, which cut weeks off data center construction time.

(Source: Eaton, Press Release, 2025)

• Schneider Electric, the global leader in the digital transformation of energy management and automation, opened a new 105,000-square-foot integration facility in Red Oak, Texas, that will be used to build prefabricated modular infrastructure to satisfy the growing demand for new data centers throughout the US.

(Source: Schneider Electric, Press Release, 2024)

Modular Data Center Market Report Coverage and Deliverables

The “Modular Data Center Market Size and Forecast (2021–2031)” provides a detailed analysis of the market covering the areas mentioned below:

• Modular data center market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Modular data center market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Modular data center market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the modular data center market
• Detailed company profiles