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Market Overview

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The forecast indicates that the global modular data center market is poised to surpass $38 billion by 2027, exhibiting a compound annual growth rate (CAGR) of over 13% from 2022 to 2027. Modular data centers offer a prefabricated and containerized approach to deploying data centers, providing the flexibility to meet increased power capacity needs at any location and time. These data centers consist of functional modules, including IT modules, power modules, and cooling modules. The modules can be combined and arranged in various configurations to suit specific requirements. Furthermore, modular data centers are available in different sizes, forms, and shapes to cater to diverse industry needs.

Modular data centers are pre-engineered, designed, and factory-developed facilities designed to process data generated by consumers and business end-users. They are typically housed in small-sized containerized or enclosure modules. Data centers are interconnected with consumers and businesses through fiber optic cables, utilizing telecommunication broadband connectivity or satellite links. The combination of functional modules forms a complete modular data center, which can be deployed in various locations based on demand. The size, form, and shape of modular data centers can be customized according to specific requirements.

Data centers play a crucial role in supporting online business operations and serving consumers. The growth in data centers is driven by the increasing use of the internet for personal and business purposes through smartphones and high-speed broadband connectivity. The Americas currently represents the largest data center market, fueled by the rising data consumption by end-users. Internet penetration in countries such as the US and Canada is growing at an annual rate of around 1%, while Latin American countries are experiencing a higher annual growth rate of approximately 5%. This trend is expected to continue due to the widespread adoption of smartphones and connected handheld devices, leading to increased data consumption. The growth of social media platforms also contributes significantly to internet penetration and is projected to continue during the forecast period.

Enterprises’ adoption of cloud-based services and the increasing use of social media by consumers are driving the construction of hyperscale data centers by major organizations like Facebook (Meta), Google, Amazon Web Services (AWS), and Microsoft. These companies are also investing in edge data centers to expand their reach in various countries. The exponential growth of data is resulting in a surge in IP traffic in both traditional and cloud data centers. It is estimated that by 2027, 85% to 90% of data centers will be cloud-enabled, as most B2B and B2C services are provided to end-users through the cloud. Many developing countries are witnessing substantial internet penetration due to the growing number of mobile and handheld devices requiring high-speed broadband connectivity. Furthermore, government initiatives aimed at digitalization are expected to further drive internet penetration. The growing number of active mobile users and active mobile social users also contribute to the demand for high-speed internet access in the region.

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Market Segmentation

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The market is segmented based on various factors, including infrastructure, functional module, and geography.

Segmentation by Infrastructure
All-in One Module
Functional Module

Segmentation by Functional Module
IT Module
Power Module
Cooling Module

Segmentation by Geography
North America – US, Canada
Western Europe – UK, Germany, France, Netherlands, Ireland, Other Western European Countries
Nordics – Sweden, Denmark, Rest of Nordics
Central & Eastern Europe – Russia, Other Central and Eastern European countries
Middle East – UAE, Saudi Arabia, Other Middle Eastern Countries
Africa – South Africa, Other African Countries
APAC – China & Hong Kong
Australia & New Zealand, Japan, India, Rest Of APAC, Southeast Asian Countries

The infrastructure segment of the modular data center market is expected to be dominated by the functional module, with a projected market share of approximately 60% by 2027. Within the functional module segment, the IT module is anticipated to hold the largest market share of around 43% in 2027.

Key operators and architecture and engineering firms are continuously evolving the design and engineering of data center facilities, leading to multiple innovations in the development and operation of green data centers. Modular data center buildouts address challenges such as high Power Usage Effectiveness (PUE), high operational costs associated with traditional data centers, and significant environmental impact. The deployment of modular data centers using a templatized plug-and-play approach facilitates easier requirement gathering for each material type, minimizing or eliminating wastage.

Countries that have adopted 5G technology, including Australia, the United States, and China, will witness the development of Performance-Optimized Data (POD) center facilities. Emerging regions such as Latin America, Eastern Europe, Southeast Asia, and the Middle East & Africa will experience modular deployments to promote environmentally friendly operations.

The growth in modular data center deployment is further supported by the emergence of edge cloud solutions, which involve deploying cloud data centers in multiple locations near customers. Major cloud service providers like Google, Amazon Web Services (AWS), and Microsoft Azure are actively pursuing cloud edge computing capabilities. Data center operators such as Equinix, Digital Realty, Vantage Data Centers, Cologix, NEXTDC, ST Telemedia Global Data Centers, NTT Global Data Centers, Global Switch, EdgeConneX, and others provide cloud on-ramps for direct and private access to hyperscale cloud service providers.

The increasing adoption of big data and the Internet of Things (IoT) is driving the demand for modular data centers, as these solutions offer flexibility in supporting High-Performance Computing (HPC) applications like IoT and big data analytics. Organizations are investing in big data and IoT technologies due to the growing use of smart devices, the demand for analytics, cloud adoption, and advancements in wireless networking technologies.

In the APAC region, China and Hong Kong lead the modular data center market in terms of investment and power capacity. Other countries in the region, such as Australia, New Zealand, India, Japan, and Southeast Asia, also contribute to the developing market.

North America is one of the most mature and advanced markets for modular data centers globally. The United States and Canada account for over 39% of the global investment in the North American market.

Latin America is expected to experience significant growth in the modular data center market, with Brazil holding over half of the market share in the region.

In the MEA region, the United Arab Emirates (UAE), Saudi Arabia, and South Africa are key countries driving market growth, with Huawei Technologies being a primary player in the region.

Within Europe, Western Europe holds the largest market share, followed by the Nordics and Central & Eastern Europe. Prominent modular data center countries in the region include the United Kingdom, Germany, Netherlands, France, Russia, Sweden, and Denmark.

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Competitive Landscape

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Several notable vendors in the data center market offer modular data center solutions. These include ABB, Atos, Cisco Systems, Dell Technologies, Delta Electronics, Huawei Technologies, IBM, Rittal, STULZ, Vertiv, and others. Among these vendors, Huawei Technologies holds the largest market share and has a significant presence in key regions such as Latin America and the Middle East & Africa.

Key companies profiled in this report include ABB, ATOS, Cisco Systems, Dell Technologies, Delta Electronics, Eaton, Hewlett Packard Enterprise (HPE), Huawei Technologies, IBM, Rittal, Schneider Electric, Stulz, Vertiv, Actemium, American Portwell Technology, American Tower, Attom Technology, AUTOMATION, BASELAYER (IE Corporation), Bladeroom Data Centres, BMARKO Structures, BOX Modul, CANCOM, Cannon Technologies, Canovate, Commscope, Compass Datacentres, Certified Technology Services (CTSL), Cupertino Electric, DARTPOINTS, DATAPOD, DATA CENTER GROUP, DDC Cabinet Technology, DXN, E3 NV, Edge Mission Critical Systems (EDGE MCS), FIBERHOME, Fuji Electric, GESAB, Internet Initiative Japan (IIJ), Integra Mission Critical, KEHUA DATA (KEHUA Tech), LIQUIDSTACK, MASTER POWER TECHNOLOGIES, Mission Critical Facilities International, Motivair, Nanjing Huamai Technology, Pacific Star Communications (PACSTAR), PCX, PRASA Infocom & Power Solutions (PRASA), Prime Modular Data Centers, RAHI, RK, Shenzhen Consnant Technology, Shenzhen KSTAR Science & Technology, Silent-Aire (Johnson Controls), Sterling Generator, Submer, Swedish Modules (Keyplants), TAS, The mavin Group, USDC Technology, Vapor IO, ZTE.

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Key Questions Answered

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What is the projected size of the modular data center market by 2027?

The modular data center market is projected to reach a size of $38.27 billion by 2027.

Who are the major investors in the modular data center market?

Some key investors in the modular data center market include ABB, Atos, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise (HPE), Huawei Technologies, Eaton, Delta Electronics, Rittal, Schneider Electric, and Vertiv.

Which regions are expected to experience the highest growth rate in modular data center investments?

Emerging markets for modular data center development with high growth potential include Latin America, Central and Eastern Europe, and the Middle East and Africa.

What are the driving factors behind the global modular data center market?

The global modular data center market is driven by factors such as the increasing deployment of edge data centers, the adoption of innovative technologies, and the impact of the Covid-19 pandemic, which has accelerated the demand for off-site prefabricated data centers.

Which segments are covered in the report?

The report covers segments such as Infrastructure and Functional Modules, as well as Geography.