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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
Market Size Value in US$ 23.35 Billion in 2022 Market Size Value by US$ 86.92 Billion by 2028 Growth rate CAGR of 24.5% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2022
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Modular Data Center Market: Strategic Insights

Market Size Value in | US$ 23.35 Billion in 2022 |
Market Size Value by | US$ 86.92 Billion by 2028 |
Growth rate | CAGR of 24.5% from 2022 to 2028 |
Forecast Period | 2022-2028 |
Base Year | 2022 |

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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 Report Scope
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

Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Solution, Service, Application, Deployment Type, and Vertical

Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Frequently Asked Questions
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.
The List of Companies - Modular Data Center Market
- 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
- ABB Ltd
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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