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Data centers, crucial hubs for processing and managing vast amounts of information, demand substantial electrical power to fuel their operations. In developing countries, the surge in internet-connected devices and the relentless growth of data traffic—doubling every four years—have led to an escalating need for data centers. Currently, these data centers consume over 2% of the world's electricity, equivalent to the output of 50 power stations. This escalating demand, coupled with prolonged deployment times, has given rise to a pressing need for energy-efficient data centers that offer swift deployment. In this context, modular data centers have emerged as a transformative solution, consolidating all necessary resources into an integrated package.
Traditional data centers, constructed on-site, demand specialized teams for installation and assembly of critical infrastructure. The deployment timeline for these conventional centers typically stretches from 18 to 24 months. In stark contrast, modular data centers can be erected in approximately 12 months, presenting a substantial reduction in deployment time. A notable example is Sun (Oracle Corporation)'s modular data center S20, boasting 18 teraflops of computing power and 3 petabytes of storage, capable of deployment ten times faster than its traditional counterpart.
The integrated nature of modular data centers facilitates the rapid assembly of data center components in any location, creating a standardized and consistent environment. This standardization not only ensures predictable performance but also streamlines IT operations. Beyond speed and efficiency, modular data centers offer significant advantages in terms of cooling and energy optimization. The confined space is easier to cool, and the built-in aisle containment minimizes the mixing of cold and hot air. This not only saves on cooling energy but also optimizes overall data center costs.
According to the Building Industry Consulting Service International (BICSI), modular data centers provide a remarkable 40% increase in energy efficiency compared to open data centers, further propelling their adoption. The rising demand for energy-efficient data centers that facilitate easy deployment is a key driver behind the growing popularity of modular data centers.
The modular approach extends beyond speed and efficiency to environmental sustainability. By reducing energy consumption and optimizing cooling processes, modular data centers align with the imperative of creating greener and more sustainable technological infrastructure. As the global focus on environmental responsibility intensifies, the energy-efficient attributes of modular data centers position them as a pivotal solution for organizations striving to balance technological demands with environmental consciousness.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Opportunities | Rising Adoption of Cloud-Based Services and Solutions to Offer Robust Opportunities |
| Market Dynamics | The Trend for Green Data Centres to Bolster Market Growth |
Modular Data Center Market Highlights:
Modular Data Center Market Overview
The Modular Data Center Market is projected to grow from USD 12.97 billion in 2024 to USD 50.62 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 18.55% during the forecast period (2024 - 2032). Additionally, the market size for modular data center was valued at USD 10.68 billion in 2023.
A transportable and quickly scalable data Center and growing Interest in Green Data Centers are the key market drivers enhancing the market Modular Data Center growth.
Figure 1: Modular Data Center Market Size, 2023-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Modular Data Center Market Trends
Cloud-based solutions are being used more and more will boost the market growth.
One of the main market drivers is the increasing use of cloud-based products and services. Adopting cutting-edge cloud solutions and apps is a top priority for the government and major companies. Key competitors worldwide are concentrating on creating cutting-edge modular data centers equipped with immersive technologies to store a huge quantity of information. For instance, GI Partners purchased two data centers from NTT Data in January 2019 and invested in developing technical infrastructure. Moreover, CyberPower Systems (USA), Inc. announced the release of Power Panel, a cloud-based program for UPS systems in March 2018. Users may monitor and manage unattended computer shutdowns remotely with the help of this cloud-based program. Thus, this factor is driving the Modular Data Center market CAGR.
Its modular design offers a practical method for installing and removing data Center components, so modular data centers are easily scaleable. They are also easily movable, in contrast to the conventional data centers' stiff designs, which increases their appeal to small and mid-sized businesses (SMEs). Mobile network operators, which use dispersed data centers as a platform to perform network function virtualization, find these data centers' scalability and small size to be an attractive offering. Also, the deployment time for modular data centers is significantly reduced. Modular data centers feature internal cooling and power systems and built-in IT space.
It is anticipated that industrial uses of IoT will generate enormous volumes of data. For instance, according to Quicksilver Capital, an offshore oil rig is expected to create between one and two terabytes of data daily. A smart factory is predicted to produce five petabytes of data every week. By utilizing artificial intelligence, platforms, and algorithms, new business models can translate enormous amounts of data into insights and revenue. According to the World Economic Forum, digitally enabled platform business models will provide 70% of all new economic value in the next ten years. Thus, this aspect will accelerate the Modular Data Center market revenue globally.
Modular Data Center Market Industry News
February 2023 - As one of its initial proposals to the Pentagon for its recently finalized Joint Warfighting Cloud Capability contract, Amazon Web Services (AWS) has revealed the AWS Modular Data Center.
The Pentagon launched JWCC as a multiple-award contract in December that is available to AWS, Microsoft, Google, & Oracle. JEDI was once Microsoft's $10 billion exclusive JEDI deal.
The Modular Data Centre (MDC), which is intended to handle AWS Outposts/Snowball Edge devices, has only been shown in a 3D rendering by AWS. To US federal clients that qualify for a JWCC contract, the cloud giant claims that MDC may be delivered by ship, train, truck, or military cargo aircraft.
However, in 2021, Microsoft introduced its MDC as an Azure-in-a-shipping-container service instead of any specialized JWCC solutions. The Azure MDC runs an Azure OS and has resource management, familiar APIs, and a cloud interface, unlike typical container data centers. At that time, both defense and business sector organizations were "early users" of Azure MDC units.
For running optimized edge scenarios with public cloud application model when the data centre is not accessible or would take a long time to set up, Microsoft identified a significant demand for swiftly deploying small-footprint data centers.
The AWS MDC, which offers AWS services & APIs for running low-latency applications from faraway locations, has a similar idea. Since it is self-sufficient, the sole need on site is electricity; however, if utilizing AWS Outposts, networking will be required.
The AWS MDC may be outfitted with Snow Family devices for unconnected, Disrupted, Intermittent, or Limited settings to execute workloads utilizing a "scoped subset of AWS services" even while unconnected, according to AWS.
Additionally, AWS MDCs can connect to the network through satellite communications. Both the AWS GovCloud (US-East) and AWS GovCloud (US-West) regions offer support for the AWS MDC service.
Modular Data Center Market Segment Insights
Modular Data Center Component Insights
Based on Components, the Modular Data Center market segmentation includes Functional modules, Services. The biggest market share for modular data centers is anticipated to be accounted for by function modules. The market participants' increasing use of individual and all-in-one collocation solutions is responsible for this increase.
Modular Data Center Data Center Size Insights
Based on Data Center Size, the Modular Data Center market segmentation includes Mid-Sized, Large Enterprises. The Mid-Sized category generated the most income. These businesses are implementing affordable, scalable solutions. Many Mid-Sized included in our report's Business Profiling section provide creative modular Data Center solutions, including considerable solar power consumption and the development of prefabricated data centers on the moon and beneath the sea. Modular data centers have an advantage over traditional systems, which may be deployed for less money.
Figure 2: Modular Data Center Market, by Data Center Size 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Modular Data Center Tier Type Insights
Based on Tier Type, the Modular Data Center industry has been segmented into Tier 4, Tier 3, Tier 2, and Tier 1. Tier 3 held the largest segment share in 2022. A data center with redundant systems that enable employees to operate on the setup without bringing it down, as well as various channels for electricity and cooling. The annual predicted uptime for this tier is 99.982%. To "enhance" Australia's digital economy and keep data on Australian soil, Schneider Electric intended to partner with Sydney-based Leading-Edge Data Centers on a USD 30 million effort in May 2020. Leading Edge will be able to increase its footprint at six locations around New South Wales with the assistance of the company's Tier-3-designed, standardized, pre-assembled, and fully integrated data Center modules.
Modular Data Center End User Insights
Based on End Users, the Modular Data Center industry has been segmented into BFSI, IT and Telecom, and Healthcare. IT and Telecom held the largest segment share in 2022. To meet the increasing demand across the IT & telecom sectors, prominent market participants are concentrating on creating cutting-edge prefabricated data centers. In addition, it is anticipated that leading companies will increase their investment, fueling market expansion.
Modular Data Center Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North America Modular Data Center market accounted for USD 4.03 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. The government and major companies' increasing investments in the creation of cutting-edge prefabricated data centers are the primary cause of the expansion. The Data Center Map estimates that in 2020 there will be 1789 active colocation data centers operating across the 50 states of the United States. Moreover, there are about 176 operational colocation data centers in Canada and about 10 in Mexico.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: MODULAR DATA CENTER MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review\
Over the projection period, the Europe Modular Data Center market is anticipated to expand at a considerable CAGR. The creation of safe data centers is something that businesses are investing more and more money in, which has led to the expansion. For instance, the investor KKR intended to invest over USD 2.5 billion in constructing data centers across many European nations, including Germany, France, and others, in 2020. Further, the Germany Modular Data Center market held the largest market share, and the UK Modular Data Center market was the fastest-growing market in the European Region.
The Region with the fastest projected growth will likely be the Asia Pacific Modular Data Center market. The expansion of the modular data center market in the Asia Pacific is being driven by the Region's requirement for upgraded data Center infrastructure and by suitable government regulations. The rise is mostly attributable to increased startups and SMEs in nations like China, India, Indonesia, and South Korea. Moreover, the China Modular Data Centr3 market held the largest market share, and the India Modular Data Center market was the fastest-growing market in the Asia-Pacific region.
Modular Data Center Key Market Players & Competitive Insights
Leading industry companies are making significant R&D investments to broaden their product offerings, which will spur further expansion of the market for Modular Data Center products. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants also engage in several strategic actions to increase their worldwide presence. The Modular Data Center industry must offer products at reasonable prices to grow and thrive in a more cutthroat and competitive environment.
One of the primary business strategies manufacturers employ in the worldwide Modular Data Center industry to benefit customers and expand the market sector is local manufacturing to reduce operating costs. The Modular Data Center industry has recently provided some of medicine's most important benefits. Major players in the Modular Data Center market, including Silent-Aire Limited Partnership (Canada), BladeRoom Group Ltd (UK), Flexenclosure AB (Sweden), Schneider Electric (France), Cannon Technologies Ltd (UK), CommScope Holding Company Inc (US), Eaton Corporation PLC (Ireland), Hewlett Packard, Enterprise Company (US), Dell Technologies Inc. (US), Huawei Technologies Co. Ltd (China), IBM Corporation (US), and others, are attempting to increase market demand by investing in research and development operations.
A French multinational corporation called Schneider Electric SE is an expert in digital automation and energy management. It addresses homes, buildings, data centers, infrastructure, and industries using energy technologies, real-time automation, software, and services. Schneider Electric will introduce its simple modular all-in-one data Center solution in Europe in June 2022. This novel, simple prefabricated solution has undergone testing and standardization. It provides shorter lead times and quicker time to market with a more reliable and predictable TCO because of its modular architecture; it costs around 15% less than conventional ETO (Engineer to order) offerings.
Chinese multinational technology company Huawei Technologies Co., Ltd. is based in Shenzhen, Guangdong province. It creates, develops, produces, and markets a variety of rooftop solar goods, consumer electronics, smart gadgets, and telecommunications equipment. In March 2021, Huawei unveiled the Modular DC 5.0 smart modular data Center solution for small and edge computing scenarios, which includes three products created for various industrial demands in the retail, manufacturing, and telecom sectors.
Key Companies in the Modular Data Center market include
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Silent-Aire Limited Partnership (Canada)
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BladeRoom Group Ltd (UK)
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Flexenclosure AB (Sweden)
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Schneider Electric (France)
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Cannon Technologies Ltd (UK)
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CommScope Holding Company Inc (US)
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Eaton Corporation PLC (Ireland)
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Hewlett Packard
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Enterprise Company (US)
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Dell Technologies Inc. (US)
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Huawei Technologies Co. Ltd (China)
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IBM Corporation (US)
Modular Data Center Industry Developments
Vertiv MegaMod Plus and Vertiv MegaMod were launched by Vertiv Co. in February 2023 as a turnkey PFM data center solution which can be deployed with increments of either 0.5 or 1 megawatt IT load up to more than two megawatts. Built into these high-quality prefabricated modules are industry-leading Vertiv power management systems, thermal management solutions, remote monitoring, and IT equipment racks, all contributing to the outstanding performance that enables organizations to deploy them up to forty percent faster than conventional data centers. These solutions are now available throughout Europe, the Middle East & Africa (EMEA).
In September 2022, Vertiv launched Vertiv Prefab Data Centres in India, introducing modular data centers & infrastructure. The integrated solution is flexible enough to fit any IT asset deployment and makes it easy to quickly install capacity when needed. It also offers simple scalability, such that the initial requirements may be met, and additional scaling may be done later on. Key capabilities provided by power and temperature management as well as monitoring & control technologies underpinning our prefabricated modular data centers.
Vertiv has introduced a new tool aimed at streamlining the configuration of prefabricated modular (PFM) data center designs in March 2024 that promises to transform the way they are designed forever. The application known as Vertiv Modular Designer Lite has just been made available to users across Europe and Middle East Africa (EMEA). It is an online design program that aids designers in creating bespoke versions of both SmartMod Max offerings inside this particular range called SmartMod.
Modular edge data centers in Bethesda-based Flexnode have attracted $8.85m in funding in March 2024. The investment was led by San Francisco’s Zacua Ventures, according to the company.
Globe Telecom, a Philippine telco, unveiled a new 5G-ready data center located in Tiaong, Quezon Province, in November 2023. Globe partnered with Vertiv, a digital infrastructure and continuity solutions provider, to design and construct this modular data center, which will widen availability and strengthen the reliability of mobile and fixed network services across its area of operation.
Modular Data Center Market Segmentation
Modular Data Center Component Outlook
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Functional Module
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Services
Modular Data Center Data Center Size Outlook
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Mid-Sized
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Large Enterprise
Modular Data Center Tier Type Outlook
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Tier 4
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Tier 3
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Tier 2
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Tier 1
Modular Data Center End User Outlook
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BFSI
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IT and Telecom
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Healthcare
Modular Data Center Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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