The global modular data center market size was estimated at USD 29.04 billion in 2024 and is anticipated to reach USD 75.77 billion by 2030, expanding at a CAGR of 17.4% from 2025 to 2030. This substantial growth is primarily attributed to the rising need for scalable, energy-efficient, and rapidly deployable data center infrastructure, which has become critical due to the exponential increase in global data generation and processing workloads. Enterprises are moving away from conventional data center setups, which require long construction timelines and high installation costs, and are instead shifting toward prefabricated modular systems that enable faster deployment, simplified installation, and reduced capital expenditure. The rapid expansion of cloud computing, edge computing networks, and IoT ecosystems further accelerates market demand, as these technologies require distributed, flexible, and easily expandable data storage and processing capabilities closer to the end user.

Additionally, sustainability has become an important factor influencing purchasing decisions, with businesses striving to minimize energy consumption and environmental impact. Modular data centers, designed for optimized power usage, reduced operational overheads, and minimal cooling requirements, align well with global green initiatives and carbon reduction goals. Their ability to operate efficiently in diverse environments, coupled with enhanced reliability and simplified maintenance, makes them increasingly suitable across diverse sectors such as IT, telecommunications, healthcare, BFSI, and government organizations. Industries handling large volumes of data and time-sensitive operations are particularly adopting modular architectures for better uptime, improved scalability, and predictable performance.

The ongoing expansion of cloud platforms, widespread introduction of edge data processing systems, and the rise in IoT-connected devices have further intensified the need for modular infrastructure. Since edge and IoT frameworks require localized data handling to reduce latency, modular data centers equipped with compact footprint, plug-and-play features, and scalable configuration options serve as an ideal choice. Sustainability-driven initiatives are also reinforcing market adoption as organizations increasingly seek eco-friendly solutions that cut energy consumption, support renewable integration, reduce material waste, and lower carbon emissions. With smaller land requirements and reduced construction waste, modular data centers play a significant role in supporting environmentally responsible digital growth.

Key Market Trends & Insights:

  • North America accounted for 41.0% of the market share in 2024, driven by accelerated deployment of 5G networks, edge computing environments, and energy-efficient digital infrastructure. The U.S. is anticipated to register strong growth throughout 2025–2030, supported by continuous data center modernization and AI-driven infrastructure upgrades.
  • The Asia Pacific market is projected to grow at over 18% CAGR from 2025 to 2030, fueled by digital transformation initiatives, increased cloud adoption, expanding internet penetration, and development of smart cities in countries such as China, India, and Singapore.
  • By component, the solution segment dominated with over 80% market share in 2024, owing to the high adoption of prefabricated modules integrating power, cooling, racks, and IT systems into a single deployable unit. Meanwhile, the service segment is expected to record the fastest growth, as businesses seek installation support, monitoring, remote management, and lifecycle maintenance services for modular setups.
  • By enterprise size, large enterprises held the dominant share in 2024, driven by extensive computing needs and data-heavy operations. However, the SME segment is set to grow at the fastest pace, supported by cost-effective modular offerings and increased accessibility to advanced digital infrastructure.
  • By end-use, IT & telecom led the market in 2024, owing to heavy data processing, cloud traffic, and network expansion. The healthcare segment is projected to witness notable growth, supported by the surge in EHR adoption, telemedicine usage, AI healthcare analytics, and the digitization of patient records.

Order a free sample PDF of the Modular Data Center Market Intelligence Study, published by Grand View Research.

Market Size & Forecast:

  • 2024 Market Size: USD 29.04 Billion
  • 2030 Projected Market Size: USD 75.77 Billion
  • CAGR (2025-2030): 17.4%
  • North America: Largest market in 2024

Key Companies & Market Share Insights:

Leading companies in the modular data center market include Cannon Technologies Ltd., Dell Inc., Eaton, Hewlett Packard Enterprise Development LP., Huawei Technologies Co., Ltd., IE Corp., PCX Holding LLC, Rittal GmbH & Co. KG, Schneider Electric, and Vertiv Group Corp. These players are actively pursuing strategic partnerships, product launches, technological upgrades, and collaborative agreements to strengthen their presence and expand solution offerings. With demand for AI-ready and high-density computing infrastructure rising sharply, companies are innovating to reduce deployment time and enhance cooling performance.

In line with this, Vertiv launched its Vertiv MegaMod CoolChip, a prefabricated modular data center equipped with liquid cooling capabilities to support high-compute AI platforms. This solution enables fast scalability, reduced setup time by up to 50%, and improved efficiency, making it suitable for data-heavy businesses. Similarly, Eaton introduced the SmartRack modular data center solution in March 2024, targeting machine learning, edge computing, and enterprise workloads. The system integrates IT racks, cooling systems, and equipment enclosures, offering rapid deployment within days and supporting critical loads up to 150 kW, making it ideal for warehouses, colocation centers, and industrial environments.

In March 2024, Eaton announced the North American launch of its innovative SmartRack modular data center solution. This new offering is designed to help organizations rapidly address the increasing demands of machine learning, edge computing, and artificial intelligence (AI). The SmartRack modular data centers are engineered for swift deployment, with installation possible within days, making them ideal for manufacturing facilities, enterprise and colocation data centers, and warehouses. The SmartRack solution integrates IT racks, cooling systems, and service enclosures to create a performance-optimized modular data center capable of supporting critical IT equipment with loads of up to 150 kW. Featuring durable and easily transportable modular enclosures, these data centers can be quickly sized, configured, commissioned, and deployed to meet various operational requirements.

Explore Horizon Databook – The world's most expansive market intelligence platform developed by Grand View Research.

Conclusion:

The global modular data center market is set for strong growth, supported by increasing demand for scalable, energy-efficient, and rapidly deployable infrastructure solutions. Rising data consumption, cloud adoption, edge computing expansion, and IoT integration are key factors driving industry momentum. The market will continue to benefit from sustainability-focused investments, as modular systems offer reduced energy consumption, optimized space usage, and lower environmental impact. Regional growth will remain robust, particularly in North America and Asia Pacific, backed by digital transformation initiatives and the rollout of advanced technologies like 5G and AI. With continuous innovation from leading companies and growing demand across IT, telecom, healthcare, and SME sectors, the market is expected to witness sustained adoption and significant revenue growth through 2030.