Modular Data Center Market is Segmented By Component (Functional Modules, Services, Infrastructure, Power & Cooling), Data Center Size (Small and Medium, Large, Micro), Tier Type (Tier 1 & 2, Tier 3, Tier 4), Industry (BFSI, IT & Telecom, Government & Defense, Healthcare, Retail & E-commerce, Manufacturing, Others), Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) The report offers the value (in USD billion) for the above-mentioned segments.

Modular Data Center Market Trends

  • Innovations in Power Equipment for Improved Resiliency: Vendors are offering modular power infrastructure with hardening, redundancy and certified integration for maximized availability. For instance, Delta offers Eco Power Monitors to analyze quality of power delivered. Schneider provides shock-proof medium voltage switchgear. Huawei offers modular liquid cooling solutions reducing PUE below 1.2 for high efficiency. Such advances are ensuring resilient, uninterrupted power delivery crucial for continuity of modern always-online applications.
  • Prefabricated Data Centers Gain Traction: Prefabricated modular data centers built via factory pre-integration and testing are gaining impetus. They promise accelerated deployment, controlled environments, minimal errors and consistent quality. Colo providers like ST Telemedia, Global Switch, and Digital Realty have adopted prefabricated designs. Huawei's Modular Data Center Product Portfolio encompasses prefabricated modules, IT/power/cooling infrastructure and management software for rapid capacity rollouts.
  • Growing Adoption of AI-enabled Monitoring and Management: AI and big data analytics are increasing being leveraged by modular data center vendors to enable intelligent remote monitoring and streamline management. Machine learning algorithms help analyze parameters like rack conditions, airflow, humidity levels, track failure patterns and even predict future anomalies. This allows timely servicing and prevention of outages. Chatbots ease IT teams' efforts via conversational interfaces. AI is transforming modular facilities into self-driving data centers improving uptime and staff productivity.
  • Innovative Cooling Techniques and Free Cooling Utilization: Vendors are offering cutting-edge cooling systems for modular data centers to lower energy consumption, including zero-water liquid cooling, rear-door heat exchangers, containment systems, and shrimp farms. Scavenging of external ambient air via free cooling modes is also being smartly enabled leveraging IoT sensors, predictive modeling and PUE optimization engines. For instance, Schneider Electric's EcoBreeze utilize AI to make real-time cooling adjustments using free air. Such techniques ensure optimal cooling while reducing redundant air conditioning.

Modular Data Center Market Regional Insights

  • North America is expected to be the largest market for Modular Data Center Market during the forecast period, accounting for over 38.5% of the market share in 2022. The growth of the market in North America is attributed to early adoption of advanced technologies, presence of leading colocation and cloud service providers, and growing investments in edge computing solutions.
  • The Europe market is expected to be the second-largest market for Modular Data Center Market, accounting for over 32.1% of the market share in 2022. The growth of the market in is attributed to high demand from the UK, Germany, France and the Netherlands along with strict government regulations around emissions.
  • The Asia Pacific market is expected to be the fastest-growing market for Modular Data Center Market, with a CAGR of over 26.7% during the forecast period. The growth of the market in Asia Pacific is attributed to rapidly growing data center infrastructure, increasing adoption of cloud computing and IoT, and growing digitalization in countries like China, Japan and India.

Figure 1. Global Modular Data Center Market Share (%), by Region, 2023