Modular Data Center Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Pre-Engineered Data Center, Prefabricated Data Center), By End-User (Government, Telecom, IT, BFSI, Other End Users), By Organization Size (Small And Medium-sized Enterprises, Large Enterprises), By Configuration (Fully Prefabricated Data Center, Semi-Prefabricated Data Center, All-in-One Data Center), And By Geography - Forecasts From 2024 To 2029

  • Published : Mar 2024
  • Report Code : KSI061610013
  • Pages : 114

The modular data center market is expected to grow at a CAGR of 9.89%, reaching a market size of US$31.758 billion in 2029 from US$16.41 billion in 2022.

A considerable quantity of data is generated every day, and that rate is only growing as the number of internet users grows. To process such a vast amount of data, companies use a facility known as a data centre that holds an institution's combined IT operations and equipment for data storage, processing, and distribution. A modular data centre system is a portable data centre capacity deployment solution that may be installed in almost any place where data capacity is required. Modular data centre systems are made up of purpose-built modules and components that provide expandable data centre capacity as well as a variety of power and cooling choices. Because modular data centres are movable and made from conventional containers, they offer much operational flexibility. Hence, they serve as an excellent alternative to organizations that need a faster and more economical data solution. Recent advancements in the modular data centre market have seen growth in providing cloud computing solutions to help users protect their data.

The increasing influence of location and climate on data centre setup

The location analysis is a crucial part of the modular data centre installation process. Because of geographical difficulties, many organizations that require data centre solutions cannot deploy modular data centres. As a result, modular data centres are unable to penetrate a wide range of markets. The provisions for transportation of data modules, power and fibre connectivity, location-related latency, interconnectivity to network systems, building regulations, etc., play a significant role in the modular data centre market. For instance, locations that experience a lot of precipitation also require proper physical qualities of the data centre enclosure to prevent water damage, leakage, and rusting. Though most modular data centre companies provide cloud storage to protect data from getting lost, they require more power and cooling than regular data centres, limiting an organization’s ability to install it.

While some climates may be unsuitable for modular data centres, some markets are positively influenced by them. According to an IEEE report, the data centre's Energy Reuse Effectiveness rises when the ambient (outside) temperature drops and the server inlet-outlet temperature differential rises. Furthermore, data indicate that, particularly in scorching and humid areas, using passive cooling techniques (e.g., DEC and free air cooling) reduces data centre heating, ventilation, and air-conditioning energy use.

Introduction of cloud computing

With an increase in data consumption and usage, there arises a need for proper data storage. Due to the increase in data breaches and hacking, data servers need to be safeguarded from such risks. Modular data centres come with the added advantage of cloud computing, which stores data in a cloud-based environment to serve as a recovery tool in case of a data breach or data loss. Modular data centres provide cloud solutions, including the data centre infrastructure, cloud hardware, storage, software, patterns, monitoring, and more in a prefabricated, compact solution. Cloud computing solutions are provided either by data centre providers (like Amazon and Microsoft) or by third-party cloud computing companies (like Oracle and VMware). These solutions make modular data centres an ideal choice for organizations.

Increase in government expenditure

There has been an ever-increasing need for proper data centre infrastructure, and companies are finding it difficult to keep up with the trend due to rising energy expenses. As a result, the requirement for government expenditure increases. For instance, Kuwait aspires to be a "financial and commercial" centre in the Middle East as part of the ‘Vision 2035’ plan. Government agencies and the commercial sector are migrating to digital platforms, which is accelerating the development of cloud, collocation, and managed data centres and increasing the data centre industry. Greenfield construction dominates the Kuwaiti market, which is also seeing the rise of on-site modular data centre construction. The market is dominated by VRLA battery-based UPS systems, which account for more than 90% of the market. Most data centres include N+1 redundancy UPS systems, which may be expanded to 2N redundancy depending on customer needs.

North America is expected to hold a significant share during the forecast period

The expansion of cloud computing, mobile broadband, and big data analytics are driving the need for new data centre infrastructure in this area. North America is known for having a large number of data centres. As more businesses move from providing hardware-based services to software-based ones, it is anticipated that this market will present opportunities for data centre installation. To optimize infrastructure, organizations are searching for modular services that enable them to choose the desired service from an integrated portfolio. As part of a standardized deployment, the online catalogues offer several service options. These choices give businesses the chance to reduce their initial outlay of funds. The IBM Integrated Managed Infrastructure Service is a prime illustration of this circumstance.

Market key launches

  • In February 2023, under the terms of the Joint Warfighting Cloud Capability (JWCC) contract, Amazon Web Services (AWS) announced that the U.S. Department of Defense (DoD) can now access AWS Modular Data Center. The Department of Defense (DoD) declared in December 2022 that AWS has been chosen for the DoD JWCC contract. This multi-vendor acquisition vehicle aims to provide cloud services and capabilities across all security domains, from the enterprise to the tactical edge, and at all classification levels. The DoD will be able to deploy self-contained data centers with integrated AWS infrastructure to areas with inadequate infrastructure thanks to the AWS Modular Data Center.
  • In June 2023, Hewlett Packard Enterprise and Equinix announced a deeper partnership to expand HPE GreenLake's private cloud offering at Equinix's data centres located in the International Business Exchange (IBX). To give customers quick access to a wide range of private cloud offerings for even greater speed, agility, flexibility, and choice in their hybrid cloud strategy, Hewlett Packard Enterprise pre-provisioned HPE GreenLake for Private Cloud Enterprise and HPE GreenLake for Private Cloud Business Edition at key Equinix data centres around the world.

Modular Data Center Market Scope:


Report Metric Details
Market Size Value in 2022 US$16.41 billion
Market Size Value in 2029 US$31.758 billion
Growth Rate CAGR of 9.89% from 2022 to 2029
Base Year 2022
Forecast Period 2024 – 2029
Forecast Unit (Value) USD Billion
Segments Covered
  • Type
  • End-User
  • Organization Size
  • Configuration
  • Geography
Companies Covered
  • PCX Corporation
  • Dell EMC
  • Microsoft Azure
  • Oracle Corporation (Sun Microsystems Inc.)
  • Japanese telco KDDI (Internet Initiative Japan (IIJ))
  • And more
Regions Covered North America, South America, Europe, Middle East and Africa, Asia Pacific
Customization Scope Free report customization with purchase



  • By Type
    • Pre-engineered Data Centre
    • Prefabricated Data Centre
  • By End-User
    • Government
    • Telecom
    • IT
    • BFSI
    • Other End Users
  • By Organization Size
    • Small and Medium-sized Enterprises
    • Large Enterprises
  • By Configuration
    • Fully Prefabricated Data Centre
    • Semi-Prefabricated Data Centre
    • All-in-One Data Centre
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • Germany
      • France
      • UK
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • UAE
      • Others
    • Asia Pacific
      • China
      • India
      • Japan
      • South Korea
      • Taiwan
      • Thailand
      • Indonesia
      • Others

Frequently Asked Questions (FAQs)

The global modular data center market is expected to grow at a CAGR of 9.89% during the forecast period.
The modular data center market is expected to reach a market size of US$31.758 billion by 2029.
Modular Data Center Market was valued at US$16.41 billion in 2022.
North America is expected to hold a significant share of the modular data center market.
The major factor anticipated to drive the modular data center market growth is the increasing demand for scalable and flexible data center solutions.


1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder


2.1. Research Design

2.2. Research Processes


3.1. Key Findings

3.2. CXO Perspective


4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View


5.1. Introduction

5.2. Pre-engineered Data Centre

5.2.1. Market Trends and Opportunities

5.2.2. Growth Prospects

5.2.3. Geographic Lucrativeness

5.3. Prefabricated Data Centre

5.3.1. Market Trends and Opportunities

5.3.2. Growth Prospects

5.3.3. Geographic Lucrativeness


6.1. Introduction

6.2. Government

6.2.1. Market Trends and Opportunities

6.2.2. Growth Prospects

6.2.3. Geographic Lucrativeness

6.3. Telecom

6.3.1. Market Trends and Opportunities

6.3.2. Growth Prospects

6.3.3. Geographic Lucrativeness

6.4. IT

6.4.1. Market Trends and Opportunities

6.4.2. Growth Prospects

6.4.3. Geographic Lucrativeness

6.5. BFSI

6.5.1. Market Trends and Opportunities

6.5.2. Growth Prospects

6.5.3. Geographic Lucrativeness

6.6. Other End-Users

6.6.1. Market Trends and Opportunities

6.6.2. Growth Prospects

6.6.3. Geographic Lucrativeness


7.1. Introduction

7.2. Small and Medium-sized Enterprises

7.2.1. Market Trends and Opportunities

7.2.2. Growth Prospects

7.2.3. Geographic Lucrativeness

7.3. Large Enterprises

7.3.1. Market Trends and Opportunities

7.3.2. Growth Prospects

7.3.3. Geographic Lucrativeness


8.1. Introduction

8.2. Fully Prefabricated Data Centre

8.2.1. Market Trends and Opportunities

8.2.2. Growth Prospects

8.2.3. Geographic Lucrativeness

8.3. Semi-Prefabricated Data Centre

8.3.1. Market Trends and Opportunities

8.3.2. Growth Prospects

8.3.3. Geographic Lucrativeness

8.4. All-In-One Data Centre

8.4.1. Market Trends and Opportunities

8.4.2. Growth Prospects

8.4.3. Geographic Lucrativeness


9.1. Introduction

9.2. North America

9.2.1. By Type

9.2.2. By End-User

9.2.3. By Organization Size

9.2.4. By Configuration

9.2.5. By Country USA Market Trends and Opportunities Growth Prospects Canada Market Trends and Opportunities Growth Prospects Mexico Market Trends and Opportunities Growth Prospects

9.3. South America

9.3.1. By Type

9.3.2. By End-User

9.3.3. By Organization Size

9.3.4. By Configuration

9.3.5. By Country Brazil Market Trends and Opportunities Growth Prospects Argentina Market Trends and Opportunities Growth Prospects Others Market Trends and Opportunities Growth Prospects

9.4. Europe

9.4.1. By Type

9.4.2. By End-User

9.4.3. By Organization Size

9.4.4. By Configuration

9.4.5. By Country Germany Market Trends and Opportunities Growth Prospects France Market Trends and Opportunities Growth Prospects United Kingdom Market Trends and Opportunities Growth Prospects Others Market Trends and Opportunities Growth Prospects

9.5. Middle East and Africa

9.5.1. By Type

9.5.2. By End-User

9.5.3. By Organization Size

9.5.4. By Configuration

9.5.5. By Country Saudi Arabia Market Trends and Opportunities Growth Prospects UAE Market Trends and Opportunities Growth Prospects Others Market Trends and Opportunities Growth Prospects

9.6. Asia Pacific

9.6.1. By Type

9.6.2. By End-User

9.6.3. By Organization Size

9.6.4. By Configuration

9.6.5. By Country China Market Trends and Opportunities Growth Prospects India Market Trends and Opportunities Growth Prospects Japan Market Trends and Opportunities Growth Prospects South Korea Market Trends and Opportunities Growth Prospects Taiwan Market Trends and Opportunities Growth Prospects Thailand Market Trends and Opportunities Growth Prospects Indonesia Market Trends and Opportunities Growth Prospects Others Market Trends and Opportunities Growth Prospects


10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard


11.1. PCX Corporation

11.2. Dell EMC

11.3. Microsoft Azure

11.4. Oracle Corporation (Sun Microsystems Inc.)

11.5. Japanese telco KDDI (Internet Initiative Japan (IIJ))

11.6. Cisco

11.7. Vertiv Holdings Co.

11.8. IBM Corporation

11.9. Fujitsu

11.10. Hewlett Packard Enterprise (HPE)

PCX Corporation

Dell EMC

Microsoft Azure

Oracle Corporation (Sun Microsystems Inc.)

Japanese telco KDDI (Internet Initiative Japan (IIJ))


Vertiv Holdings Co.

IBM Corporation


Hewlett Packard Enterprise (HPE)