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    US Modular Data Center Market

    ID: MRFR/ICT/11365-HCR
    100 Pages
    Garvit Vyas
    September 2025

    US Modular Data Center Market Research Report: By Component (Functional Module, Services), By Data Center Size (Mid-Sized, Large Enterprise), By Tier Type (Tier 4, Tier 3, Tier 2, Tier 1) and By End User (BFSI, IT and Telecom, Healthcare) - Forecast to 2035

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    US Modular Data Center Market Infographic
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    US Modular Data Center Market Summary

    The US Modular Data Center market is projected to grow from 3.2 USD Billion in 2024 to 20.5 USD Billion by 2035, indicating robust expansion.

    Key Market Trends & Highlights

    US Modular Data Center Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 18.39% from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 20.5 USD Billion, reflecting a substantial increase from 3.2 USD Billion in 2024.
    • The growing demand for energy-efficient solutions is likely to propel market growth in the coming years.
    • Growing adoption of modular data centers due to the increasing need for scalable infrastructure is a major market driver.

    Market Size & Forecast

    2024 Market Size 3.2 (USD Billion)
    2035 Market Size 20.5 (USD Billion)
    CAGR (2025-2035) 18.39%

    Major Players

    Iron Mountain, Dell Technologies, Flexential, EdgeConneX, Cologix, Cisco, IBM, Rittal, NTT Global Data Centers, STULZ, Vertiv, CyrusOne, Mitsubishi Electric, Hewlett Packard Enterprise, Schneider Electric

    US Modular Data Center Market Trends

    The US Modular Data Center Market is experiencing significant growth, driven by the increasing demand for efficient and scalable IT infrastructure solutions. One key market driver is the rapid expansion of cloud computing services across various sectors in the US, which stimulates the need for more flexible and modular data center deployment. Furthermore, the rise in edge computing requirements, spurred by the Internet of Things (IoT) and real-time data processing needs, mandates proximity of data centers to end-users, leading to the adoption of modular solutions that can be deployed quickly in diverse environments.

    Opportunities to be explored include the integration of advanced cooling technologies and energy-efficient systems within modular data centers, which align with rising sustainability efforts across the US.The federal government and several state initiatives are pushing for eco-friendly practices, thus creating a demand for energy-efficient infrastructure that can adapt to local regulations. Additionally, the evolution of 5G networks presents a sizeable opportunity for modular data centers, as they can be strategically positioned to support the required low-latency data processing needs.

    Trends in recent times indicate a shift towards hybrid solutions that combine traditional data center operations with modular technologies, allowing businesses to maintain flexibility while optimizing costs. This hybrid approach is gaining traction as organizations look to balance performance with investment in future-ready IT infrastructures.The need for disaster recovery solutions and business continuity plans following recent natural disasters in the US has also positioned modular data centers as a crucial component of resilient IT strategies.

    As the digital landscape continues to evolve, the Modular Data Center Market in the US is poised for ongoing transformation, reflecting the dynamic needs of various industries.

    Market Segment Insights

    Modular Data Center Market Component Insights

    The Component segment of the US Modular Data Center Market plays a critical role in shaping the overall landscape of this rapidly growing industry. This part of the market includes integral elements such as Functional Modules and associated Services, which collectively drive the adoption of modular data centers, particularly in the United States. The increasing demand for efficient, flexible, and scalable data center solutions is primarily due to the proliferation of digital transformation initiatives across various sectors, including technology, healthcare, and finance.

    The Functional Modules, which encompass essential components such as IT racks, power supply units, cooling solutions, and network equipment, are essential in ensuring optimal operation and energy efficiency within modular data centers. Their ability to deliver high performance in a compact layout allows enterprises to meet heavy data processing needs while minimizing physical footprint. Services associated with modular data centers also constitute a vital part of this segment, including installation, maintenance, and support services.

    These offerings provide customers with tailored solutions that significantly enhance operational efficiency and reduce downtime, which is crucial in an era where uptime and reliability are paramount. Currently, the U.S. is witnessing a surge in the adoption of modular data centers as organizations seek to enhance their agility and respond swiftly to changing business demands. The rise of cloud computing, big data analytics, and the Internet of Things (IoT) has further fueled the need for advanced data infrastructure, making the Role of the Component segment even more significant.

    As organizations embrace hybrid and multi-cloud strategies, they are increasingly reliant on modular solutions to create resilient and adaptable data environments. Moreover, the U.S. government’s focus on modernizing IT infrastructure to improve cybersecurity resilience also plays a critical role in driving market growth. The Component segment not only contributes to the current market dynamics but also presents diverse opportunities for innovation, particularly in energy-efficient technologies and environmentally sustainable practices.

    As the need for advanced data management continues to rise, the importance of both Functional Modules and Services within the component segment will remain at the forefront of the US Modular Data Center Market's evolution.

    Modular Data Center Market Data Center Size Insights

    The Data Center Size segment within the US Modular Data Center Market is characterized by the presence of diverse configurations that cater to various organizational needs, primarily focusing on Mid-Sized and Large Enterprise data centers. Mid-Sized data centers are often pivotal for companies looking to balance cost and performance, offering a practical solution for businesses that experience moderate workloads without the need for the expansive resources of larger facilities.

    Conversely, Large Enterprise data centers dominate due to their ability to handle extensive data processing, storage, and operational demands, making them essential for large corporations.This sector is bolstered by the increasing reliance on cloud computing and the rapid growth of digital transformation efforts, as enterprises seek to enhance infrastructure flexibility. Additionally, security, scalability, and energy efficiency continue to be paramount trends driving the advancements in this segment, resulting in significant investments and innovations to meet evolving customer requirements.

    Overall, understanding the dynamics of Data Center Size enables stakeholders to better appreciate how these specific configurations influence the broader US Modular Data Center Market landscape.

    Modular Data Center Market Tier Type Insights

    The US Modular Data Center Market has been notably divided based on Tier Type, which plays a crucial role in defining the operational capabilities and reliability of data centers. This segmentation includes Tier 4, Tier 3, Tier 2, and Tier 1 classifications, where Tier 4 is recognized for its high level of redundancy and fault tolerance, making it a preferred choice for critical applications that require continuous uptime.

    Conversely, Tier 3 offers a balance between efficiency and reliability, suitable for many enterprises looking to manage operational costs while preserving service availability.Tier 2 and Tier 1 data centers cater to smaller businesses with less demanding reliability needs. The growing emphasis on scalability and energy efficiency in the US Modular Data Center Market indicates that Tier 3 and Tier 4 may experience heightened importance as industries increasingly require robust data handling capabilities.

    As businesses continue to digitize operations and seek eco-friendly solutions, the segmentation dynamics within the US Modular Data Center Market are likely to evolve, presenting numerous opportunities for investment and technological advancements in these Tier Types.This aligns with industry trends towards greater automation and the integration of advanced cooling technologies.

    Modular Data Center Market End User Insights

    The End User segment of the US Modular Data Center Market is characterized by diverse applications across various industries, particularly reflecting the robust demand in domains such as Banking, Financial Services, and Insurance (BFSI), Information Technology (IT) and Telecommunications, as well as Healthcare. The BFSI sector is crucial due to its need for secure, scalable, and efficient data handling solutions to manage vast amounts of sensitive financial data while ensuring compliance with regulatory mandates.

    Similarly, the IT and Telecom industries drive significant growth through their increasing reliance on data centers to support cloud services, virtualization, and connectivity demands.Healthcare continues to prioritize efficient data management in light of growing Electronic Health Records (EHR) adoption and the need for secure patient data storage. Each of these sectors has substantial market growth dynamics, influenced by technological advancements such as edge computing and IoT, while also facing challenges related to data security and infrastructure costs.

    The overall emphasis on efficiency and adaptability across these sectors reaffirms the importance of the Modular Data Center Market in catering to evolving industry needs, highlighting its relevance and potential for significant development in the coming years.

    Get more detailed insights about US Modular Data Center Market Research Report - Forecast till 2035

    Key Players and Competitive Insights

    The US Modular Data Center Market has become increasingly competitive as organizations seek flexible, scalable, and cost-effective data storage solutions to meet their growing digital needs. This sector has witnessed a surge in demand, influenced by factors such as the proliferation of big data, cloud computing, and the necessity for disaster recovery systems. Competitive insights reveal a landscape where companies consistently innovate and adapt to rapidly changing technology landscapes and customer demands. Players in the market are striving to distinguish themselves through advanced product offerings, superior customer service, and strategic partnerships or acquisitions that enhance their capabilities.

    In this environment, understanding the unique strengths and strategies of key industry players is crucial to gaining market share and establishing a sustainable competitive advantage.Iron Mountain has established a robust presence in the US Modular Data Center Market, highlighting its strengths in data protection and compliance through its comprehensive security controls. The company's facilities are renowned for their high-level standards in physical security, environmental sustainability, and operational resilience. With a focus on providing colocation services and hybrid cloud solutions, Iron Mountain appeals to a diverse clientele looking for reliable and secure data management options.

    Their innovative modular designs allow for quick scalability, making it easy for clients to adjust their infrastructure in response to changing demands. Moreover, Iron Mountain's commitment to sustainability and energy efficiency enhances its reputation, appealing to organizations that prioritize eco-friendly initiatives in their operations.Dell Technologies has a significant foothold in the US Modular Data Center Market, leveraging its expertise in IT infrastructure and a broad spectrum of products and services tailored for data storage and management.

    The company offers high-performance modular data centers that integrate seamlessly with its suite of hardware, software, and services, including cloud solutions and data security mechanisms. Dell Technologies consistently capitalizes on mergers and acquisitions to enhance its capabilities in the market, broadening its access to innovative technologies and allowing for enhanced service offerings to customers. Their strengths lie in not only their advanced technology solutions but also their comprehensive support services and strong customer relationships.

    With a reputation for quality, Dell Technologies remains a competitive force, addressing the diverse needs of enterprises navigating the complexities of modern data management in the US market.

    Key Companies in the US Modular Data Center Market market include

    Industry Developments

    The US Modular Data Center Market has been witnessing significant developments recently, driven by increasing demand for scalable and efficient data solutions. In September 2023, Iron Mountain announced the expansion of its modular data center offerings, focusing on sustainable energy solutions. Dell Technologies has also been enhancing its modular infrastructure to cater to the growing edge computing requirements.

    Flexential and EdgeConneX are in strategic partnerships to improve their service offerings across multiple states, enhancing their footprint and responsiveness in the market.In terms of mergers and acquisitions, Cologix acquired a data center facility in the United States in August 2023, indicating aggressive expansion efforts. Schneider Electric recently announced a partnership with Vertiv in July 2023 to jointly develop innovative modular solutions for data centers, emphasizing advanced energy management systems.

    Meanwhile, a rising trend of companies seeking to migrate to modular setups has been noticed, contributing to a projected market growth valuation amid increasing digital transformation efforts in various sectors over the past few years, particularly post-2021, reflecting the urgency for enhanced data handling technologies in response to a growing need for efficiency and reliability in operations.

    Market Segmentation

    Outlook

    • BFSI
    • IT and Telecom
    • Healthcare

    Modular Data Center Market End User Outlook

    • BFSI
    • IT and Telecom
    • Healthcare

    Modular Data Center Market Component Outlook

    • Functional Module
    • Services

    Modular Data Center Market Tier Type Outlook

    • Tier 4
    • Tier 3
    • Tier 2
    • Tier 1

    Modular Data Center Market Data Center Size Outlook

    • Mid-Sized
    • Large Enterprise

    Report Scope

    Report Attribute/Metric Source: Details
    MARKET SIZE 2018 2.3(USD Billion)
    MARKET SIZE 2024 3.2(USD Billion)
    MARKET SIZE 2035 20.5(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 18.393% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED Iron Mountain, Dell Technologies, Flexential, EdgeConneX, Cologix, Cisco, IBM, Rittal, NTT Global Data Centers, STULZ, Vertiv, CyrusOne, Mitsubishi Electric, Hewlett Packard Enterprise, Schneider Electric
    SEGMENTS COVERED Component, Data Center Size, Tier Type, End User
    KEY MARKET OPPORTUNITIES Growing demand for edge computing, Increased energy efficiency requirements, Expansion in 5G infrastructure, Need for rapid deployment solutions, Rising adoption of hybrid cloud solutions
    KEY MARKET DYNAMICS growing demand for edge computing, increasing energy efficiency focus, rapid deployment capabilities, cost-effective infrastructure solutions, scalability and flexibility in design
    COUNTRIES COVERED US

    FAQs

    What is the expected market size of the US Modular Data Center Market in 2024?

    The US Modular Data Center Market is anticipated to reach a value of 3.2 billion USD in 2024.

    How much is the US Modular Data Center Market projected to be worth by 2035?

    By 2035, the US Modular Data Center Market is expected to be valued at 20.5 billion USD.

    What is the expected CAGR for the US Modular Data Center Market from 2025 to 2035?

    The market is forecasted to grow at a compound annual growth rate of 18.393% from 2025 to 2035.

    Which segment has a higher market value in 2024, Functional Module or Services?

    In 2024, the Functional Module segment is valued at 1.5 billion USD while Services is valued at 1.7 billion USD.

    What is the anticipated value of the Functional Module segment by 2035?

    The Functional Module segment is projected to reach a value of 9.6 billion USD by 2035.

    What will be the market value of the Services segment in 2035?

    The Services segment is expected to be valued at 10.9 billion USD in 2035.

    Who are the major players in the US Modular Data Center Market?

    Key players in the market include Iron Mountain, Dell Technologies, Flexential, EdgeConneX, and more.

    What are some key growth drivers for the US Modular Data Center Market?

    Increased demand for scalable solutions and efficiency requirements are key growth drivers in the market.

    What challenges does the US Modular Data Center Market face?

    Challenges include the need for high initial investments and competition from traditional data centers.

    How are current economic conditions affecting the US Modular Data Center Market?

    Current economic conditions have led to increased focus on cost efficiency, influencing market strategies and investments.

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