Containerized Data Center Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Containerized Data Center Market Analysis

The global containerized data center market is expected to register a CAGR of 25.49% during the forecast period.

• Big data and Internet-of-Things (IoT) technology will expand investments in the containerized data center market. Enterprises worldwide are witnessing high data generation across industries, such as IT and telecom, BFSI, healthcare, and government and defense. The growing cloud computing increasing penetration of foreign cloud vendors, government regulations for local data security, and increasing investment by domestic players are some of the major factors driving the demand for containerized data centers.
• The government plays a crucial role in the containerized data center market growth. Various government bodies focus on digital infrastructure to fuel job opportunities and drive innovation. For instance, in June this year, the UK government revealed its eagerly expected digital plan to support the nation's digital economy. By 2025, the government claimed that the new UK Digital Strategy could boost the economy's contribution from the UK tech sector by USD 41.5 billion.
• The need for data centers has increased in recent years due to the high adoption of cloud services. According to the survey results published in the Cloud Infrastructure Report 2021, 57% of the respondents reported that more than half of their infrastructure is in the cloud, while 64% expect that they will be fully in the public cloud in the next five years.
• The significant demand in the IT and telecommunication industries for data processing and storage of vast amounts of data daily has been one of the primary reasons for the growth of the data center construction market in this segment. Moreover, with the advent of more technology and service-based startups, these SMEs have shifted focus to cost-effective solutions. This has led to increased migration to the cloud, which, in turn, has increased spending on scaling up infrastructure by IT solution providers.
• Due to the COVID-19 pandemic's impact on the advent of remote work, online learning, and virtual entertainment, as well as the expanding influence of big data and the internet of things, global containerized data center operators are seeing a sharp rise in demand for their processing and storage capacity. As a result, data centers offer a great chance for the global economy to recover from the COVID-19 pandemic. Further, the New South Wales (NSW) state government announced the interim reclassification of data centers as State Significant Developments in reaction to the financial effects of the COVID-19 epidemic on the domestic economy and in appreciation of the economic benefits of data centers (SSDs).
• Distributing data across a large network containing numerous devices and data centers operating from enterprise locations can create problems with network visibility and control, with each device representing another potential endpoint, especially in the IoT network framework. Other devices that use edge have similar problems. Security loopholes can give hackers easy access to the core network, further creating performance constraints for data centers. With the global adoption of IoT, any increase in network node points increases security concerns further. Moreover, IoT devices are some of the frequently targeted devices.

Containerized Data Center Industry Segments

A containerized data center is primarily defined as a modular data center incorporated into a standard shipping container or similar type of container. The containers are then fabricated with all the necessary components used in a data center, including cooling, power, and racks. The report covers the emerging trends in containerized data center market segmented by type, and end-user across different regions studied. ​

The containerized data center market is segmented by ownership type (purchase, lease), end user (BFSI, IT telecommunications, government, education, healthcare, defense, entertainment, and media ), and geography (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa).

The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

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Containerized Data Center Market Trends

This section covers the major market trends shaping the Containerized Data Center Market according to our research experts:

Rising Demand for Energy Efficient Data Centers

• An environmentally friendly data center's primary goals are energy efficiency and minimal environmental effect. A green or sustainable data center is a location for storing, managing and transmitting data where all systems, including mechanical and electrical ones, conserve energy. It produces fewer carbon footprints, which reduces costs and improves efficiency.
• Further, these green data centers enable contemporary firms to conserve electricity and cut carbon emissions. Their use is expanding globally among both large corporations and SMBs. Such data centers can successfully serve the aims of a vast array of company data, from collection to processing and review to distribution.
• Moreover, the government has released plans to achieve carbon neutrality in the region. For example, in June this year, the Japanese government released a preliminary report on its "Clean Energy Strategy." Further, growth will be attained through maintaining a reliable and inexpensive energy supply for the future while striving to achieve carbon neutrality by 2050 and a 46% decrease in greenhouse gas emissions in fiscal 2030. To reach two ambitious goals—carbon neutrality by 2050 and a 46% decrease in greenhouse emissions (GHG) in fiscal 2030 Japan has intensified its decarbonization efforts.
• According to the Dutch Data Center Association, 80% of data centers in the Netherlands use green electricity. This means that at least 20% of Dutch data centers are still largely reliant on fossil fuels. The green energy used is often 'light green' electricity ('certified power') and does not come from sustainable electricity generation in the Netherlands. Only a small part of the power supply for data centers is 'dark green,' meaning that it is generated sustainably in the Netherlands. There is still a lot of work to be done, particularly considering the Climate Accord and the objectives of the Dutch Climate Act, namely the almost eradication of greenhouse gases and CO2- neutral electricity generation in this country by 2050.
• Further, according to Cloud scene, 2,701 data centers were located in the United States as of January this year, and 487 more were found in Germany. With 456, the United Kingdom came in third place among nations regarding the number of data centers behind China (443).

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