Modular Data Center Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component (Services (All-in-one Module, Individual Module (IT, Power, and Cooling)), Solutions (Design and Consulting, Integration and Deployment, and Maintenance & Support)), By Organization Size (SMEs, Large Enterprises) By Industry Vertical (IT & Telecom, BFSI, Media & Entertainment, Government & Defense, Healthcare, Retail, and Others), By Region and Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 28.44 Billion
CAGR (2026-2031)	17.83%
Fastest Growing Segment	Healthcare
Largest Market	North America
Market Size (2031)	USD 76.11 Billion

Market Overview

The Global Modular Data Center Market will grow from USD 28.44 Billion in 2025 to USD 76.11 Billion by 2031 at a 17.83% CAGR. Modular data centers are pre-engineered, portable computing facilities consisting of interlocked units that house necessary IT infrastructure, power, and cooling components. The market is primarily supported by the critical need for rapid deployment and scalability, allowing organizations to expand capacity swiftly in response to data surges. Additionally, the shift toward sustainable operations drives adoption, as these prefabricated units often offer superior energy efficiency and reduced carbon footprints compared to traditional construction.

However, the sector faces a significant impediment regarding the integration of these modern units with aging legacy infrastructure, which can create technical complexities and delay implementation. According to AFCOM, in 2024, 42% of respondents indicated that a hybrid approach to data center construction using prefabricated modular facilities alongside traditional techniques was on their radar. This highlights the industry's gradual but cautious shift toward modularity amidst existing operational challenges.

Key Market Drivers

The Rising Demand for Rapid Deployment and Reduced Time-to-Market is fundamentally reshaping the sector, intensified by the explosive growth of high-density computing and artificial intelligence. As hyperscalers and enterprises race to build infrastructure, traditional construction timelines are increasingly insufficient to meet the velocity of data generation. Modular solutions offer a critical speed advantage, enabling operators to commission capacity months or even years ahead of standard schedules. This urgency is reflected in the massive scale of development currently underway; according to JLL, in January 2025, the hyperscale and colocation segments were projected to see 10 gigawatts (GW) of new data center projects breaking ground globally throughout the year. Manufacturers are responding with pre-integrated solutions designed to meet this pace. For example, according to Vertiv, in March 2025, their newly launched modular prefabricated overhead infrastructure system demonstrated the capability to deploy up to 85% faster on-site compared to traditional stick-build methods.

The Need for Energy-Efficient and Sustainable Data Center Solutions further accelerates market adoption, as operators prioritize green technologies to manage the intense thermal output of modern workloads. Modular data centers facilitate the precise integration of advanced cooling systems, such as liquid cooling, which are often complex and costly to retrofit into legacy facilities. This shift towards efficient, prefabricated thermal management is evident in recent industry surveys. According to AFCOM, in May 2025, 83% of data center operators indicated plans to deploy prefabricated cooling modules, a significant increase from the previous year, underscoring the reliance on modularity to achieve sustainability goals. These factory-assembled units not only optimize Power Usage Effectiveness (PUE) through tighter engineering tolerances but also significantly reduce the carbon footprint associated with on-site construction waste and material inefficiency.

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Key Market Challenges

The integration of modern modular units with aging legacy infrastructure presents a substantial barrier to the expansion of the Global Modular Data Center Market. While prefabricated modules are engineered for high-density performance and energy efficiency, older facilities frequently lack the supporting power architectures and cooling capacities required to sustain these advanced interlocked units. This technological mismatch forces data center operators to undertake extensive and costly retrofitting projects before deployment can occur, effectively negating the speed-to-market advantage that typically drives modular adoption. Consequently, the technical complexity involved in harmonizing disparate systems creates operational bottlenecks, causing significant delays in implementation and hesitation among potential buyers.

This structural incompatibility is evidenced by the industry's struggle to improve efficiency metrics within existing footprints. According to the Uptime Institute, in 2024, the global data center industry reported a stagnant average Power Usage Effectiveness (PUE) ratio of 1.56, a figure that has remained largely flat due to the technical limitations inherent in the vast install base of aging legacy facilities. This statistic underscores the widespread prevalence of outdated infrastructure that is ill-equipped to interface with modern technologies. As organizations are forced to divert capital toward stabilizing or upgrading these obsolete onsite environments rather than acquiring new capacity, the uptake of modular solutions is directly impeded, thereby slowing overall market growth.

Key Market Trends

The proliferation of Micro-Modular Data Centers for Edge Deployments is emerging as a critical trend, driven by the necessity to process latency-sensitive workloads closer to the source rather than in centralized hyperscale facilities. Unlike massive core data centers, these granular, ruggedized units are designed for installation in diverse, space-constrained environments such as telecom towers, manufacturing floors, and urban rooftops to support 5G and IoT ecosystems. This shift towards decentralized architecture allows operators to rapidly scale network density and ensure sovereign AI performance. A prime example of this widespread distribution is evident in recent infrastructure projects; according to DCD, December 2025, in the 'DCD>Awards 2025' announcement, BDx Data Centers was recognized for deploying a national AI platform that included a network of over 50 distinct Edge sites delivered in just 73 days, illustrating the speed and scale at which micro-modular solutions are being implemented.

Simultaneously, the Implementation of AI-Enabled Infrastructure Management Systems is becoming indispensable to oversee the complexity of these distributed and increasingly high-density environments. As modular units proliferate across remote locations, manual operation becomes impractical, necessitating advanced software capable of autonomous real-time optimization. These smart systems utilize machine learning algorithms to predict component failures, dynamically adjust cooling parameters, and balance power loads, thereby ensuring reliability without on-site human intervention. The market's aggressive move towards such intelligent, AI-ready infrastructure is reflected in manufacturer performance; according to Vertiv, October 2025, in their 'Third Quarter 2025 Results', the company reported that organic orders increased approximately 60% compared to the previous year, a surge attributed primarily to the accelerating adoption of AI-driven data center technologies and their associated management ecosystems.

Segmental Insights

The Healthcare segment currently represents the fastest-growing area in the Global Modular Data Center Market due to the rapid digitization of patient records and the expansion of telemedicine. Medical institutions deploy modular units to process large volumes of diagnostic data locally, ensuring low latency for real-time applications. These solutions allow organizations to scale infrastructure quickly while maintaining strict control over sensitive information, which is vital for compliance with data protection mandates such as HIPAA. Consequently, the necessity for secure and flexible on-premise storage drives the significant demand for modular data centers in the healthcare sector.

Regional Insights

North America maintains a leading position in the global modular data center market driven by the high concentration of hyperscale cloud providers and established technology enterprises. The region benefits from substantial investments in IT infrastructure and a strategic shift toward energy-efficient computing models. Regulatory frameworks supported by institutions like the U.S. Department of Energy promote sustainable operations, encouraging the adoption of modular facilities that optimize power consumption. Additionally, the increasing demand for rapid deployment and edge computing capabilities across the United States and Canada further solidifies the regional market leadership.

Recent Developments

• In June 2025, Schneider Electric expanded its portfolio with the launch of the Prefabricated Modular EcoStruxure Pod Data Center, a solution designed to handle the extreme power densities of next-generation AI clusters. This new infrastructure consolidates liquid cooling, high-power busways, and high-density racks into a scalable, engineered-to-order architecture capable of supporting loads exceeding 1 MW. The Senior Vice President of EcoStruxure IT highlighted that the pre-assembled pods address critical thermal and power challenges, ensuring predictable scaling and rapid rollout. The system supports various cooling architectures, including rear door heat exchangers, to meet the dynamic needs of modern high-performance computing environments.
• In October 2024, Submer entered into a strategic partnership with Zero Two to accelerate the deployment of sustainable digital infrastructure in the United Arab Emirates. This collaboration focuses on leveraging Submer’s turnkey modular AI platforms and immersion cooling technology to address the region's growing high-performance computing requirements. The initiative utilizes a zero-water cooling design to enhance energy efficiency and support local sustainability goals. According to the Chief Executive Officer of Zero Two, combining their infrastructure expertise with the partner's modular solutions will enable the rapid commissioning of large-scale data center sites, significantly reducing traditional deployment times.
• In July 2024, Vertiv introduced the MegaMod CoolChip, a liquid-cooling-equipped prefabricated modular data center solution engineered specifically for efficient AI computing. This turnkey product integrates high-density direct-to-chip cooling, power protection, and monitoring technologies to support the rigorous demands of AI workloads. By leveraging offsite fabrication, the solution can reduce deployment timelines by up to 50% compared to traditional onsite builds. The Vice President of Infrastructure Solutions noted that the factory-assembled units allow for better control over costs and schedules, offering a scalable approach for developers and operators seeking to rapidly expand their critical digital infrastructure.
• In March 2024, Eaton announced the launch of its SmartRack modular data centers in North America to address the urgent demand for edge computing, AI, and machine learning infrastructure. These prefabricated solutions integrate IT racks, cooling systems, and power distribution into durable enclosures, allowing for rapid deployment in days rather than months. The product line offers several standard configurations designed to support equipment loads of up to 150 kW, catering to enterprise, colocation, and industrial environments. The company’s Product Manager emphasized that this innovation simplifies the traditionally costly process of data center construction while optimizing capacity for modern computing needs.

Key Market Players

• International Business Machines Corporation
• Schneider Electric SE
• Huawei Technologies Co. Ltd
• Hewlett Packard Enterprise Development LP
• Dell Technologies
• Vertiv Co.
• Cannon Technologies Ltd
• Rittal Gmbh & Co. KG
• Baselayer Technology LLC
• Bladeroom Group Ltd.

By Component	By Organization Size	By Industry Vertical	By Region
Services (All-in-one Module Individual Module (IT, Power, and Cooling)) Solutions (Design and Consulting, Integration and Deployment, and Maintenance & Support)	SMEs Large Enterprises	IT & Telecom BFSI Media & Entertainment Government & Defense Healthcare Retail and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Modular Data Center Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Modular Data Center Market, By Component:

• Services (All-in-one Module
• Individual Module (IT, Power, and Cooling))
• Solutions (Design and Consulting, Integration and Deployment, and Maintenance & Support)

• Modular Data Center Market, By Organization Size:

• SMEs
• Large Enterprises

• Modular Data Center Market, By Industry Vertical:

• IT & Telecom
• BFSI
• Media & Entertainment
• Government & Defense
• Healthcare
• Retail
• and Others

• Modular Data Center Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE