Modular Data Centers Market Size 2026-2030
The modular data centers market size is valued to increase by USD 69.27 billion, at a CAGR of 22.4% from 2025 to 2030. Requirement to reduce complexity of traditional data centers will drive the modular data centers market.
Major Market Trends & Insights
- North America dominated the market and accounted for a 33.3% growth during the forecast period.
- By End-user - IT and telecom segment was valued at USD 9.12 billion in 2024
- By Component - Solution segment accounted for the largest market revenue share in 2024
Market Size & Forecast
- Market Opportunities: USD 89.77 billion
- Market Future Opportunities: USD 69.27 billion
- CAGR from 2025 to 2030 : 22.4%
Market Summary
- The modular data centers market is undergoing significant transformation, moving away from monolithic, stick-built facilities toward agile, prefabricated solutions. This shift is primarily driven by the need for enhanced data center deployment speed to support the voracious computational demands of AI workload-optimized infrastructure and the decentralized architecture of edge computing.
- Organizations are increasingly adopting modular data center construction to achieve data center CAPEX reduction strategies and better data center OPEX management models. The use of a containerized data center or micro data center solutions enables businesses to scale capacity incrementally, aligning infrastructure spend with actual demand.
- For example, a global logistics company can deploy ruggedized modular units at its distribution hubs for remote data processing capabilities of real-time supply chain data. This strategy not only improves operational efficiency by reducing latency but also enhances resilience through distributed disaster recovery data centers.
- However, challenges in data center facility design principles and the need for specialized data center infrastructure management (DCIM) software skills persist, requiring careful planning for successful hyperscale data center deployment models and adoption across sectors like BFSI and healthcare.
What will be the Size of the Modular Data Centers Market during the forecast period?
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How is the Modular Data Centers Market Segmented?
The modular data centers industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2026-2030, as well as historical data from 2020-2024 for the following segments.
- End-user
- IT and telecom
- BFSI
- Healthcare
- Retail and ecommerce
- Others
- Component
- Solution
- Services
- Application
- Data center expansion
- Edge computing
- Disaster recovery
- Geography
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- APAC
- China
- Japan
- India
- South America
- Brazil
- Argentina
- Middle East and Africa
- Saudi Arabia
- UAE
- South Africa
- Rest of World (ROW)
- North America
By End-user Insights
The it and telecom segment is estimated to witness significant growth during the forecast period.
The IT and telecom sector is a primary adopter, driven by the need for rapid deployment data centers to support cloud computing data center capacity and 5G network infrastructure support.
These organizations leverage prefabricated data center modules and factory-built data center systems to build out scalable IT infrastructure with greater cost-efficiency. Utilizing pre-tested data center components within a self-contained data center reduces complexity.
For instance, operators deploying edge computing infrastructure benefit from the compact footprint of micro data center solutions, enabling data center deployment speed benchmarks that reduce project timelines by up to 50%.
This agility is crucial for managing IoT data processing hubs, making modular data center construction a strategic imperative.
The IT and telecom segment was valued at USD 9.12 billion in 2024 and showed a gradual increase during the forecast period.
Regional Analysis
North America is estimated to contribute 33.3% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market exhibits distinct regional dynamics, with North America dominating due to extensive colocation data center services and strong investment in high-performance computing (HPC) infrastructure. The region accounts for approximately 33% of incremental growth.
Meanwhile, APAC is emerging as the fastest-growing region, fueled by digitalization and the deployment of ruggedized modular units. Europe maintains a strong position, focusing on sustainability with advanced cooling infrastructure module designs.
Globally, adoption of these solutions enables operators to reduce construction timelines by over 40%, meeting the demands of modern digital infrastructure.
Market Dynamics
Our researchers analyzed the data with 2025 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
- Strategic decisions around digital infrastructure increasingly involve a detailed comparison of modular data center vs traditional construction. The benefits of software-defined modular data centers, such as enhanced agility and automated management, are compelling for businesses aiming to optimize IT operations.
- For use cases requiring minimal latency, modular data centers for edge computing latency offer a practical solution, bringing compute closer to end-users. A thorough cost comparison of modular data center deployment often reveals significant savings in initial capital outlay and long-term managing OPEX with modular data center infrastructure.
- The rise of high-performance computing has also spurred interest in advanced liquid cooling technologies for modular data centers, essential for maintaining performance. Furthermore, businesses are integrating these systems into their continuity strategies, recognizing the value of a modular data center for disaster recovery planning. Security considerations for modular data centers remain paramount, requiring robust physical and cyber protocols.
- As companies look to the future, planning for modular data center scalability for business growth is a critical exercise. Prefabricated modules for rapid AI infrastructure are becoming standard, with projects achieving operational readiness in nearly half the time of conventional builds.
- This accelerated timeline is a key factor in addressing the impact of 5G rollout on modular data centers and navigating the challenges in operating modular data centers in telecommunication networks.
What are the key market drivers leading to the rise in the adoption of Modular Data Centers Industry?
- A primary market driver is the requirement to reduce the operational complexity and significant capital expenditure associated with building and managing traditional data centers.
- The primary driver is the urgent need for data center expansion solutions that are fast and cost-effective.
- Businesses leveraging containerized data center models can deploy new capacity in a fraction of the time, with some projects reducing on-site work by up to 60%. This agility is critical for hyperscale data center deployment models.
- A second driver is data center CAPEX reduction strategies, as factory-based assembly can lower initial investment by 20-30%.
- Furthermore, predictable data center OPEX management models are achieved through standardized, efficient designs incorporating reliable uninterruptible power supply (UPS) systems, making modular approaches a compelling choice for meeting BFSI data center compliance and enabling new retail edge computing solutions.
What are the market trends shaping the Modular Data Centers Industry?
- The implementation of software-defined modular data centers represents a key emerging market trend. This approach leverages virtualization to deliver infrastructure as a service, enhancing operational control and management.
- A key trend is the integration of software-defined data center (SDDC) principles, creating automated environments for telecom data center modernization and improving healthcare data infrastructure security. This approach allows organizations to manage all-in-one data center modules as a unified resource pool, with implementations reducing workload provisioning times by over 75%.
- Another significant trend is the focus on data center energy efficiency metrics, with vendors developing high-density cooling solutions and modular power assembly units that minimize environmental impact. This is driving adoption of advanced hot-aisle containment systems and even direct-to-chip liquid cooling for AI workload-optimized infrastructure, which can lower energy consumption by more than 20% compared to traditional air-cooling.
What challenges does the Modular Data Centers Industry face during its growth?
- The lack of widespread awareness and specialized expertise required to operate and maintain modular data center solutions poses a significant challenge to broader market adoption.
- Despite benefits, challenges related to data center facility design principles persist. The compact nature of a modular IT space can introduce constraints on future hardware choices if not planned correctly.
- A significant hurdle is the skills gap; operating a highly integrated IT infrastructure module and network infrastructure module requires specialized training, and improper configuration of power distribution units (PDUs) can decrease efficiency by up to 25%. There are also security concerns for remote data processing capabilities, as tactical field data center solutions may require more robust physical security.
- Overcoming these hurdles requires investment in data center infrastructure management (DCIM) software and planning for resilient disaster recovery data centers.
Exclusive Technavio Analysis on Customer Landscape
The modular data centers market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the modular data centers market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape of Modular Data Centers Industry
Competitive Landscape
Companies are implementing various strategies, such as strategic alliances, modular data centers market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Amazon Web Services Inc. - Key offerings include advanced modular data center solutions engineered for the rapid deployment of remote cloud services and building scalable IT infrastructure.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- Amazon Web Services Inc.
- Cannon Technologies Ltd.
- Cisco Systems Inc.
- Colt Technology Services Ltd.
- Datapod
- Dell Technologies Inc.
- Delta Electronics Inc.
- Eaton Corp. Plc
- GREEN4T SOLUCOES TI LTDA
- Hewlett Packard
- Huawei Technologies Co. Ltd.
- IE Corp.
- IBM Corp.
- Iron Mountain Inc.
- Microsoft Corp.
- Rittal GmbH and Co. KG
- Schneider Electric SE
- STULZ GmbH
- Vertiv Holdings Co.
- WESCO International Inc.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Recent Development and News in Modular data centers market
- In March 2025, Vertiv announced the global launch of Vertiv SmartRun, a modular, prefabricated overhead infrastructure system featuring hot-aisle containment systems to streamline data center deployments.
- In February 2025, Microsoft announced a multi-billion dollar expansion of its Wisconsin data center campus, utilizing prefabricated data center modules to accelerate the development of its AI and cloud infrastructure.
- In April 2025, Google revealed a three-billion-dollar investment to expand its Virginia data center footprint, using factory-built data center systems for densification and rapid deployment of AI workload infrastructure.
- In May 2025, Schneider Electric, in collaboration with NVIDIA, released new reference designs for AI data centers, emphasizing prefabricated modular configurations with direct-to-chip liquid cooling to manage high-thermal GPUs.
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Modular Data Centers Market insights. See full methodology.
| Market Scope | |
|---|---|
| Page number | 295 |
| Base year | 2025 |
| Historic period | 2020-2024 |
| Forecast period | 2026-2030 |
| Growth momentum & CAGR | Accelerate at a CAGR of 22.4% |
| Market growth 2026-2030 | USD 69269.6 million |
| Market structure | Fragmented |
| YoY growth 2025-2026(%) | 19.0% |
| Key countries | US, Canada, Mexico, Germany, UK, France, Italy, Spain, The Netherlands, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Argentina, Chile, Saudi Arabia, UAE, South Africa, Israel and Turkey |
| Competitive landscape | Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Research Analyst Overview
- The modular data centers market is defined by its rapid evolution, driven by the need for scalable IT infrastructure that can be deployed quickly. The core of this market revolves around prefabricated data center modules, including distinct IT infrastructure module, network infrastructure module, and cooling infrastructure module designs.
- We observe a strong shift towards high-density cooling solutions, particularly direct-to-chip liquid cooling, to support high-performance computing (HPC) infrastructure. This trend directly impacts boardroom-level budgeting, as the upfront investment in such specialized systems is weighed against long-term operational savings. The use of pre-tested data center components in a factory-built data center systems environment improves reliability.
- Solutions range from large-scale rapid deployment data centers to compact all-in-one data center modules and ruggedized modular units for edge computing infrastructure. Adopting these technologies has enabled some organizations to lower their Power Usage Effectiveness (PUE) by up to 15%, a critical metric for sustainability and cost control in any modular IT space.
What are the Key Data Covered in this Modular Data Centers Market Research and Growth Report?
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What is the expected growth of the Modular Data Centers Market between 2026 and 2030?
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USD 69.27 billion, at a CAGR of 22.4%
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What segmentation does the market report cover?
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The report is segmented by End-user (IT and telecom, BFSI, Healthcare, Retail and ecommerce, and Others), Component (Solution, and Services), Application (Data center expansion, Edge computing, and Disaster recovery) and Geography (North America, Europe, APAC, South America, Middle East and Africa)
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Which regions are analyzed in the report?
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North America, Europe, APAC, South America and Middle East and Africa
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What are the key growth drivers and market challenges?
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Requirement to reduce complexity of traditional data centers, Lack of awareness and expertise in operating modular data centers
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Who are the major players in the Modular Data Centers Market?
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Amazon Web Services Inc., Cannon Technologies Ltd., Cisco Systems Inc., Colt Technology Services Ltd., Datapod, Dell Technologies Inc., Delta Electronics Inc., Eaton Corp. Plc, GREEN4T SOLUCOES TI LTDA, Hewlett Packard, Huawei Technologies Co. Ltd., IE Corp., IBM Corp., Iron Mountain Inc., Microsoft Corp., Rittal GmbH and Co. KG, Schneider Electric SE, STULZ GmbH, Vertiv Holdings Co. and WESCO International Inc.
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Market Research Insights
- The market is characterized by dynamic shifts as organizations seek greater agility and efficiency. Adoption is driven by compelling business outcomes, with firms leveraging modular approaches to achieve data center CAPEX reduction strategies of up to 30% compared to conventional builds.
- The move toward software-defined data center (SDDC) principles further enhances control, enabling automated provisioning that reduces workload deployment times from weeks to hours. For mission-critical sectors requiring BFSI data center compliance, modular designs provide a pathway to enhanced resilience, with some operators reporting fault tolerance improvements that contribute to 99.999% uptime.
- These tactical field data center solutions are becoming essential for supporting new revenue streams from 5G services and IoT data processing hubs, where low latency is non-negotiable.
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