Modular Data Centers are self-contained, prefabricated platforms consist stackable modules and secure enclosure, along with integrated power, cooling, security and racks for housing servers, storage and networking equipment. Modular Data Centers deploy quickly with reduced downtime and risk as fully integrated modules deliver full IT capability faster and easier than traditional Developments. As these facilities are portable, scalable in nature, and optimal for temporary, disaster recovery or expansion needs, Modular Data Center Market has opened-up opportunities in high-growth markets worldwide to support digital transformation. The increasing energy efficiency and low power consumption of modular data centers have also fueled their adoption to reduce carbon footprint.

The global modular data center market size was valued at US$ 18.49 billion in 2023 and is expected to reach US$ 87.65 billion by 2030, grow at a compound annual growth rate (CAGR) of 24.9% from 2023 to 2030.
Key Takeaways
Key players operating in the Modular Data Center Market are Rittal GmbH & Co. KG, BladeRoom Group Ltd., Eaton, Cannon Technologies Ltd., Hewlett Packard Enterprise Development LP, Dell Inc., Vertiv Co., International Business Machines (IBM) Corporation, Baselayer Technology, LLC, Eltek AS, Schneider Electric SE, Datapod, Zella DC, and ETA.
The increasing digitization across industries and growing adoption of cloud-based services has massively increased the data volumes worldwide driving the demand for Modular Data Center Market. For instance, over 50% of organizations increased their data storage by more than 25% in 2022 compared to pre-COVID levels.
Modular data center players are also investing heavily in the development of AI-driven technologies and edge data center solutions including 5G integration to optimize data center management autonomously, reduce latency and boost operational efficiency. For example, Baselayer recently launched "Tardigrade" - a completely autonomous and intelligent modular micro data center optimized for mobile, edge and on-premise deployments.
Market Trends
The increasing preference towards environment-friendly data center solutions: Modular data centers are highly energy efficient design and help organizations significantly reduce their carbon footprint through utilizing renewable energy integration.
Rising adoption of hyperconverged infrastructure: Hyperscalers are increasingly investing in turnkey pre-engineered, integrated HCI infrastructure which help reduce TCO and provide agility through flexible capacity. This is driving the demand for hyperconverged optimized modular data center solutions.
Market Opportunities
Increasing demand from telecom industry for 5G edge deployments: Telecom operators are deploying modular facility at radio network edges in telecom towers and cell sites to support low-latency 5G services creating opportunities.
Growing requirement for disaster recovery infrastructure: Rising focus on business continuity planning post pandemic has bolstered the adoption of portable off-site modular data centers which can temporarily replace impacted on-premise facilities during disasters.
Impact of COVID-19 on Modular Data Center Market
The COVID-19 pandemic has significantly impacted the growth of the modular data center market. In the initial months of the pandemic, many businesses shifted to remote working which increased the demand for computing power and data storage capacity. This led to higher adoption of modular and portable data centers by organizations to quickly scale up their IT infrastructure. However, market growth was temporarily hampered due to disruptions in the supply chain and restrictions on trade of non-essential goods during country-wide lockdowns.
As countries are now easing lockdowns and economic activities are resuming gradually, the modular data center market is witnessing renewed demand. Many companies are looking to deploy modular data centers to support their long-term remote and hybrid working models. Organizations are preferring portable and scalable infrastructure offered by modular solutions over expensive and time-consuming customary data center builds. The market is anticipated to grow at a higher rate in the forecast period compared to the pre-COVID estimates driven by increased cloud consumption and digital transformation initiatives of enterprises.
The North American region accounts for over 40% of the global modular data center market value. The region has seen extensive adoption of cloud, IoT, big data and other emerging technologies among organizations which is fueling the need for dynamic and scalable IT infrastructure. Asia Pacific is emerging as the fastest growing regional market and the growth rate is estimated to increase further post-COVID. Countries like China, India are witnessing immense growth in their digital ecosystems and have a huge potential for modular data center deployments.

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Author Bio:

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)