Modular Data Center Market on Track for $89.38 Billion Growth by 2031, Led by Schneider Electric, PCX Holding, Huawei Digital Power Technologies and Delta Electronics – The Insight Partners

The Modular Data Center market is experiencing significant growth, driven by the rapid expansion of the data center industry and the rising adoption of cloud-based services. The demand for modular data centers is increasing due to their flexibility, scalability, and disaster recovery capabilities. The growing need for advanced data infrastructure, driven by IoT, AI, and 5G technologies, is further contributing to the market's expansion.

/EIN News/ -- US & Canada, March 27, 2025 (GLOBE NEWSWIRE) -- According to a new comprehensive report from The Insight Partners, Modular Data Center Market Size and Forecast (2025 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component, Deployment, Application, End-User Industry, and Geography”, the global modular data center market is observing significant growth owing to growth in the data center industry and the rise in the adoption of cloud-based services. The global market experiences growth owing to the growth data center industry and the rise in adoption of cloud-based services.

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The report runs an in-depth analysis of market trends, key players, and future opportunities. In general, the modular data center market comprises a vast array of offering, form factor, organization size, and end users, which are expected to register strength during the coming years.

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Overview of Report Findings

Modular Data Center Market Growth: The modular data center market size was valued at US$ 29.26 billion in 2024 and is expected to reach US$ 89.38 billion by 2031; it is estimated to record a CAGR of 17.8% from 2025 to 2031. The growth of the modular data center market has been driven by mobility, scalability, and disaster recovery benefits. These innovations are designed to provide fast and flexible solutions, allowing businesses to deploy IT systems. Organizations require assurance regarding operational continuity and the ability to recover from potential disruptions.

Rising Demand for IoT, AI, and 5G-driven Data Infrastructure: The modular data center market is poised to see significant growth driven by the rising demand for data infrastructure fueled by IoT, AI, and 5G technologies. According to Vanguard, AI investments in the US are projected to reach between US$ 76 billion and US$ 121 billion in the coming year. If AI investments follow a growth trajectory similar to NVIDIA Corp.'s data center revenues in recent years, AI spending could rise to ~US$ 129 billion by 2024 and US$ 248 billion by 2025 in an optimistic scenario. This surge highlights the growing need for flexible and sustainable data environments, which modular data centers provide, enabling businesses to adapt to the evolving AI and machine learning landscape. As advancements in AI and the rollout of 5G continue, the demand for localized data processing becomes increasingly critical. Modular data centers offer a practical solution, catering to the uncertainty of demand and the need for rapid deployment. By delivering lower latency and enhanced connectivity, these data centers are essential for the successful implementation of IoT solutions across various industries. The integration of AI, IoT, and 5G technologies not only boosts operational efficiency but also drives the demand for reliable, scalable data infrastructure, further providing growth opportunities in the future.

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Regional Overview: The modular data center market in the Middle East and Africa (MEA) is leading the way in a revolutionary digital era and technological developments. As organizations and sectors embrace digitization, data centers have become crucial for innovation, efficiency, and competitiveness. Organizations are leveraging data centers to improve operations, enhance customer experiences, and open new prospects for advancement, recognizing the importance of data in driving economic growth and societal progress. Cloud computing and digital services are rapidly gaining popularity throughout the Middle East and Africa. This is increasing demand for modular data center capacity to support cloud computing services. The data center landscape in the Middle East and Africa is evolving rapidly. The region is gaining importance for global data center operators because of its strategic position, favorable government policies, and rising demand for 5G networks, cloud computing, and other digital services. The total number of data centers functioning in the UAE, Saudi Arabia, Qatar, Oman, and Kuwait is ~73 colocation facilities. These are specialized data centers where numerous organizations can rent space to store their servers, networking equipment, and other gear. Moreover, the modular data center market in the Middle East and Africa is experiencing growth due to favorable government policies. These policies include the provision of special economic zones, tax incentives, and infrastructure development, which create a supportive ecosystem for a thriving data center market. As a result, more data center operators are encouraged to invest in the region.

Geographical Insights: North America dominated the modular data center market in 2024. Europe is the second-largest contributor to the global modular data center market, followed by Asia Pacific.

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Modular Data Center Market Segmentation

Key segments that contributed to the derivation of the modular data center market analysis are offering, form factor, organization size, and end user.

• In terms of offering, the market is bifurcated into solutions and services.
• Based on solutions, the market is segmented into prefabricated modules and all-in-one solutions.
• In terms of form factor, the market is divided into ISO containers, skid-mounted systems, and enclosures.
• On the basis of the organization size, the market is bifurcated into SMEs and large enterprises.
• By industry vertical, the market is divided into IT and telecom, BFSI, government, healthcare, manufacturing, media and entertainment, and others.
  
  

Key Players and Competitive Landscape:

The Modular Data Center Market is characterized by the presence of several major players, including:

• Schneider Electric SE
• PCX Holding LLC
• Huawei Digital Power Technologies Co Ltd
• Delta Electronics Inc
• Rittal GmbH & Co KG
• Eaton Corp Plc
• Dell Technologies Inc
• Vertiv Group Corp.
• Hewlett Packard Enterprise Development LP
• ABB Ltd

These companies are adopting strategies such as new product launches, joint ventures, and geographical expansion to maintain their competitive edge in the market.

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Competitive Strategy and Development

• Key Players: A few major companies operating in the modular data center market include Schneider Electric SE, PCX Holding LLC, Huawei Digital Power Technologies Co Ltd, Delta Electronics Inc, Rittal GmbH & Co KG, Eaton Corp Plc, Dell Technologies Inc, Vertiv Group Corp, Hewlett Packard Enterprise Development LP, and ABB Ltd.
• Trending Topics: Edge Computing, Sustainability Initiatives, AI and Machine Learning Integration, and Disaster Recovery.

Global Headlines

• "NTT DATA and Schneider Electric have unveiled a first-of-a-kind co-innovation that empowers enterprises to harness the power of edge computing. The strategic partnership introduces a unique solution that seamlessly integrates Edge, Private 5G, IOT, and Modular Data Centers, providing unparalleled connectivity and supporting the computational demands of Generative AI applications deployed at the edge."
• "Huawei introduced two new additions to its Smart Modular Data Center and SmartLi uninterruptible power supply (UPS) series –FusionModule2000 6.0, a modular small/medium-sized data center solution, and UPS2000-H, a small-footprint power supply solution running on SmartLi Mini, at Huawei's Sanyapo Campus in China, on November 11. These new solutions are designed to enable channel partners to gain a competitive edge in the marketplace while driving forward green digitalization for businesses in a cost-effective manner."

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Conclusion

The demand for flexible and portable solutions is increasing as companies strive to adapt to evolving market needs. Modular data centers enable businesses to expand their infrastructure as needed, with less downtime compared to traditional data centers. This flexibility is especially advantageous for industries such as retail, where demand fluctuates, or for companies entering new markets. With flexibility and rapid response becoming essential for business success, modular data centers are increasingly viewed as valuable assets that help organizations effectively tackle challenges and optimize their operations.

The report from The Insight Partners, therefore, provides several stakeholders—including component providers, manufacturers, distributors or suppliers, and end users —with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.

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About Us:

The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.

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