Modular Data Center Market Size and Share

Modular Data Center Market Analysis by Mordor Intelligence
The modular data center market size reached USD 36.04 billion in 2025 and is on track to touch USD 85.21 billion by 2030, translating into an 18.78% CAGR over the forecast period. The steep growth curve mirrors the shift toward prefabricated, factory-integrated facilities that can be deployed in weeks rather than quarters. Demand is fuelled by AI-driven density requirements, the spread of edge locations close to users, and hyperscale cloud operators standardizing global buildouts. Liquid-cool designs, once niche, now underpin many new modules as partial PUE values below 1.05 become commercially viable. At the same time, service-centric revenue is accelerating because enterprises want turnkey integration rather than in-house assembly, while greenfield projects are gathering speed as organisations design for tomorrow’s workloads instead of adapting yesterday’s shells.
Key Report Takeaways
- By solution, functional module solutions led with 62.12% of modular data center market share in 2024; the services segment is forecast to expand at a 19.45% CAGR to 2030.
- By application, data center expansion accounted for a 32.34% share of the modular data center market size in 2024, while AI/GPU training pods are advancing at a 22.65% CAGR through 2030.
- By build type, brownfield deployments held 58% of the modular data center market size in 2024, whereas greenfield projects record the highest projected CAGR at 22.78% through 2030.
- By geography, North America dominated with 43.44% modular data center market share in 2024; Asia-Pacific is set to grow fastest at a 21.23% CAGR between 2025-2030.
Global Modular Data Center Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Rapid edge-computing rollout | 5.0% | Global, with early adoption in North America and Western Europe | Medium term (2-4 years) |
Hyperscale and cloud adoption surge | 4.5% | North America, Europe, Asia-Pacific | Medium term (2-4 years) |
Mobility and scalability advantages | 3.8% | Global | Short term (≤ 2 years) |
5G-triggered quick-build demand | 3.2% | North America, Asia-Pacific, Europe | Medium term (2-4 years) |
AI-driven high-density liquid-cool modules | 2.9% | North America, Europe, East Asia | Short term (≤ 2 years) |
Data-sovereignty micro-regional builds | 2.5% | Europe, Middle East, Asia-Pacific | Long term (≥ 4 years) |
Source: Mordor Intelligence
Rapid Edge-Computing Rollout
Edge deployments are growing much faster than centralised facilities as video analytics, autonomous systems, and industrial IoT call for sub-10 millisecond latency. The modular data center market benefits because micro facilities can be dropped into retail rooftops, factory floors, or base-station shelters without lengthy site work. With edge data centers forecast to expand at 37.9% CAGR, operators in telecom and transportation increasingly select all-in-one prefabricated enclosures that ship with power, cooling, and racks pre-tested. Delta’s SmartNode line shows how integrated battery strings and in-row chillers maintain uptime in harsh edge environments.[1]Delta Power Solutions, “SmartNode Prefabricated Datacenters,” deltapowersolutions.com Service providers also value the ability to duplicate designs across hundreds of remote points, streamlining spares and training needs. For vendors, the distributed footprint expands addressable unit volumes even if individual footprints are smaller than core sites.
Hyperscale and Cloud Adoption Surge
Hyperscale operators add floor area equivalent to several football fields every month, and the modular data center market is becoming a preferred way to meet that pace. Modular blocks allow consistent quality control across continents and collapse deployment timelines from 18 months to less than 9 months. Cloud brands benefit from standardised power and network topologies that make capacity fungible across regions, easing disaster-recovery planning. ARANER projects the hyperscale data-center sector will balloon to USD 935.3 billion by 2032, sustaining demand for rapid-build capacity.[2]ARANER, “The Rise of the Hyperscale Data Center,” araner.com Integrated automation—ranging from robotic cabling to AI-based airflow tuning—now ships with many modules, supporting remote “lights-out” operations. Collectively, these factors reinforce a flywheel effect: shorter build cycles free capital sooner, enabling more frequent expansions.
AI-Driven High-Density Liquid-Cool Modules
Generative AI training clusters pack thousands of GPUs that each dissipate more than 500 W, pushing racks beyond 100 kW. Conventional air systems struggle at those densities, so the modular data center market is quickly adopting liquid cooling as a standard option. Hewlett Packard Enterprise’s AI Mod POD handles 1.5 MW per module via Adaptive Cascade Cooling, allowing partial PUEs under 1.05 while fitting in a 45-foot container footprint.[3]Hewlett Packard Enterprise, “HPE Introduces New Enterprise AI Solutions with NVIDIA,” hpe.comFor customers, the appeal lies in predictable thermals and the ability to purchase fully validated racks rather than assemble bespoke solutions. Component vendors, meanwhile, see design-in opportunities for immersion-rated boards, cold plates, and dielectric fluids, expanding the overall ecosystem.
5G-Triggered Quick-Build Demand
5G macro cells create many more radio points than 4G, each requiring compute for user-plane functions and content caching. Telecom carriers therefore drive the modular data center market as they scatter small, rugged enclosures across metro zones. Cisco’s deployment with Dish Wireless uses an ACI Multi-Pod fabric to interconnect dozens of edge sites, showcasing how network-centric automation complements modular hardware. The ability to crane-lift a complete Tier III pod onto a parking-lot pad slashes permitting cycles. In dense cities, modular units also tuck into ground-floor retail or basements where traditional builds would be impossible, enabling operators to meet coverage obligations without costly land acquisitions.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
High upfront CAPEX and vendor lock-in | -2.1% | Global, with higher impact in emerging markets | Short term (≤ 2 years) |
Power-efficiency and sustainability gaps | -1.8% | Global, with regulatory pressure in Europe and North America | Medium term (2-4 years) |
Limited customisation for mega-facilities | -1.5% | North America, Europe, East Asia | Medium term (2-4 years) |
Grid-capacity and permitting bottlenecks | -1.2% | North America, Western Europe | Long term (≥ 4 years) |
Source: Mordor Intelligence
High Upfront CAPEX and Vendor Lock-In
Factory-integrated power modules can cost USD 750,000–1 million per MW, a sizeable cheque for smaller enterprises. Financing complexities are compounded by proprietary interconnects that make it costly to mix brands later, raising fears of being tied to a single supplier. In emerging markets, limited access to low-cost capital accentuates the hurdle. While operating savings eventually offset the premium, CFOs often prioritise near-term cash flow over lifetime economics. Vendors that offer leasing, revenue-share, or “capacity as a service” arrangements can mitigate the perception of lock-in and help broaden adoption.
Power-Efficiency and Sustainability Gaps
Although partial PUEs below 1.05 are technically feasible, many modular deployments still run at higher values because speed-to-market trumps deep optimisation. The International Energy Agency warns that global data-center energy use could double by 2026, leading regulators to tighten reporting mandates. European sustainability directives already push operators to publish efficiency metrics, and similar frameworks are under discussion in North America. Liquid cooling adds complexity around water usage and heat reuse that some designs have yet to address. Companies such as HPE demonstrate circular approaches by feeding waste heat into district systems, but these best practices are far from universal. As policies stiffen, any perceived lag may shrink the addressable pool of customers that can pass environmental audits.
Segment Analysis
By Solution and Services: Service Segment Outpaces Hardware Growth
Functional modules dominated the modular data center market in 2024, underpinned by their 62.12% share of revenue. Standardised steel-frame blocks equipped with integrated UPS, chillers, and racks have become a de-risked path for expansion: operators know exactly what arrives at the dock and how it will perform. That predictability lowers project management overhead and speeds up grid-tie approvals. Yet, the services segment is on a steeper 19.45% CAGR because clients increasingly outsource everything from site surveys to day-two optimisation. As power densities rise, issues such as fluid chemistry management or AI workload tuning require niche skills that most IT teams do not maintain in-house. Consequently, service providers bundle design, build, and long-term operations into outcome-based contracts, turning what was once CapEx into ongoing OpEx.
In many bids, functional modules now integrate application-specific accelerators, software-defined fabrics, and AI-based telemetry out of the box. EPG’s latest generation incorporates modular switchgear, lithium-ion battery strings, and rear-door heat exchangers to support 100 kW racks without floor penetrations. Meanwhile, Delta Power Solutions couples its consulting arm with add-on microgrid controllers so that sites can tap rooftop solar or fuel cells. These extended offerings make the service line indispensable, and its share of the broader modular data center market will likely keep inching upward as complexity snowballs.
Note: Segment shares of all individual segments available upon report purchase
By Application: AI/GPU Training Pods Driving Next-Generation Growth
Data center expansion projects captured 32.34% of 2024 revenue because organisations still rely on incremental annexes to meet steady demand. However, AI/GPU training pods are the clear momentum story, racing ahead at a 22.65% CAGR. These pods ship with immersion baths or direct-to-chip cold plates, high-bandwidth memory stacks, and optical interconnects, all engineered for multi-petaflop clusters. Server Simply’s blueprint shows GPU count scaling linearly with coolant loops, enabling deterministic performance for time-boxed model training. CIOs value the guarantee that power, cooling, and network coherence arrive ready-tuned from the factory.
Disaster-recovery pods also benefit from modularity. A fully populated container can sit in a separate seismic zone and spin up within minutes of a primary-site outage, vital for banks or hospitals subject to zero-tolerance downtime mandates. Because form factors are predictable, organisations run rehearsed swap-over drills, shaving recovery time objectives to single-digit minutes. As cyber-resilience climbs board agendas, this sub-segment quietly adds tailwind to the overall modular data center market.
By Build Type: Greenfield Projects Accelerate as Purpose-Built Facilities Gain Favor
Brownfield retrofits retained a 58% foothold in 2024 by exploiting existing utility feeds and fibre pathways. City-center warehouses converted into edge nodes illustrate the appeal: permit processes are shorter, and tenants can command premium latency pricing. Nonetheless, greenfield sites are clocking 22.78% CAGR because ground-up campuses allow megawatt-scale energy contracts, optimised airflow corridors, and onsite renewables. For hyperscalers, designing from scratch ensures power-to-rack ratios and liquid loop routing match GPU roadmaps out to 2030, avoiding the compromises inherent in legacy shells.
ZincFive’s analysis shows how nickel-zinc battery cabinets integrate more naturally into new builds where floor load limits and room heights can be set early. The upfront blueprint also allocates space for heat-recovery heat exchangers that feed district schemes—features harder to bolt onto ageing structures. Consequently, even colocation providers now set aside greenfield parcels near secondary metros where land is cheaper yet fibre is plentiful. The modular data center market thus balances short-term revenue from brownfield with a strategic pivot to purpose-built campuses.

Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
North America led the modular data center market in 2024 with a 43.44% revenue share thanks to a mature cloud ecosystem and capital depth. Large-scale projects in Northern Virginia, Dallas, and Phoenix accounted for a significant chunk of new capacity, and vacancy rates fell to record lows as AI tenants pre-leased entire phases even before construction completed. The region also benefits from robust secondary markets such as Portland and Columbus, where electricity costs remain comparatively low and state incentives sweeten capital-intensive greenfield deals. Cooling innovation clusters around Silicon Valley and Austin mean suppliers can prototype liquid solutions locally, shortening iteration cycles.
Asia-Pacific ranks as the fastest-growing theatre with a 21.23% CAGR through 2030, reflecting the surge in 5G rollouts, e-commerce penetration, and sovereign-cloud frameworks. China’s eastern seaboard is layering modular edge nodes along major highways to support autonomous trucking corridors, while India’s tier-2 cities adopt prefabricated shells to bypass grid-expansion delays. Government policies encouraging indigenous manufacturing amplify the move—prefab container assembly lines now operate in Shenzhen, Bangalore, and Jakarta, cutting logistics costs. For suppliers, navigating diverse regulatory regimes remains challenging, but volume potential outweighs localisation friction.
Europe sits mid-pack yet exhibits distinct drivers. GDPR compliance prompts enterprises to ring-fence data within national borders, so modular blocks pop up in smaller countries that previously relied on cross-border hosting. Sustainability imperatives loom large: Nordic operators highlight containerised data halls cooled with seawater or free air to secure green financing. Continental demand also ties to automotive electrification, with OEMs in Germany and France setting up AI training pods for autonomous-driving models inside modular units adjacent to proving grounds. As the fit-out phase accelerates, the modular data center market size for Europe could approach previously forecast USD 64.5 billion by 2029.
The Middle East and Africa represent nascent yet high-margin opportunities. Governments in the Gulf push vision-funded digital-economy plans that include megawatt-class greenfield campuses built on desert outskirts with solar hybrids. Because ambient temperatures exceed 45 °C, liquid cooling inside sealed containers mitigates dust ingress and reduces chill-water plant footprints. African nations, meanwhile, leverage modular kits for regional internet exchanges, addressing latency and data sovereignty in one stroke. Suppliers willing to offer build-operate-transfer models stand to gain early-mover advantage as these regions leapfrog traditional brick-and-mortar designs.

Note: Segment shares of all individual segments available upon report purchase
Competitive Landscape
Competition in the modular data center market is intense yet moderately concentrated, with traditional OEMs, power-system specialists, and pure-play modular vendors jockeying for share. Dell Technologies, IBM, and Hewlett Packard Enterprise use long-standing enterprise relationships to bundle servers, storage, and prefabricated shells into one invoice, easing procurement headaches for global clients. In parallel, Schneider Electric and Vertiv prioritise electrical and thermal innovations, pitching modules that integrate medium-voltage switchgear and rear-door heat exchangers out of the crate.
Strategic alliances have become a linchpin. Eaton’s xModular partner program adds Rittal’s enclosure IP to an ecosystem that targets utility-grade resilience, helping partners co-develop container skins rated for seismic zones and hurricane loads. HPE’s tie-up with NVIDIA embeds DGX nodes directly into its AI Mod POD, enabling turnkey GPU clusters that can scale in 1.5 MW increments. Financial markets reward such collaborations: Colovore’s recent USD 925 million debt facility underscores investor appetite for liquid-cooled footprints tied to AI demand.
Innovation cycles now orbit cooling. Direct-to-chip solutions promise rack densities beyond 150 kW without white-space expansion, and immersion tech vendors partner with cab-ling specialists to solve fibre cleanliness challenges. Patents around dielectric fluid formulations and manifold sealing mechanisms thus form a growing portion of IP portfolios. Vendors lacking a credible liquid strategy risk obsolescence as GPU roadmaps point toward 1,000 W devices by decade-end.
Vertical specialisation presents another competitive lever. Finance clients request tamper-evident enclosures with certified hardware-security modules, while healthcare buyers look for HIPAA-aligned access controls and validated airflow paths that minimise pathogen spread. Providers able to customise without resetting certification clocks can price at a premium, capturing sticky contracts with long renewal tails. Despite the rivalry, the market still offers white-space for innovative entrants focusing on microgrid integration, waste-heat reuse, or rural connectivity.
Modular Data Center Industry Leaders
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IBM Corporation
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Huawei Technologies Co. Ltd
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Dell EMC (Dell Technologies)
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Baselayer Technology LLC
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HPE Company
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- March 2025: Hewlett Packard Enterprise introduced the AI Mod POD, a 1.5 MW container with Adaptive Cascade Cooling for dense GPU clusters
- May 2025: Colovore secured a USD 925 million debt facility to scale its liquid-cooled data-center model.
- April 2025: ProLift Rigging Company published guidance comparing brownfield and greenfield deployment trade-offs.
- January 2025: Evolve Incorporated launched edge-focused modular solutions aimed at location-sensitive industries.
- January 2025: Data Center Frontier outlined eight trends for 2025, spotlighting modular builds as a response to energy-hungry AI
Global Modular Data Center Market Report Scope
A portable, modular data center exists at any location requiring data capacity. This type of data center system comprises modules and components with purpose engineering. Applications such as disaster backup, high-performance/ edge computing, data center expansion, and starter data centers are considered under the scope. '
The Modular Data Center Market is segmented by solution and services (function module solution and services), application (disaster backup, high performance/ edge computing, data center expansion, and starter data centers), end user (IT, telecom, BFSI, and government), and geography (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
By Solution and Services | Functional-Module Solution | Individual Module | |
All-in-One Module | |||
Services | Consulting and Design | ||
Integration and Deployment | |||
Managed and Maintenance | |||
By Application | Disaster Recovery | ||
Edge / High-Performance Computing | |||
Data Center Expansion | |||
Starter / SMB Data Centers | |||
Artificial Intelligence / Graphical Processing Units Training Pods | |||
Crypto-Mining and HPC Containers | |||
By Build Type | Greenfield | ||
Brownfield | |||
By Geography | North America | United States | |
Canada | |||
Mexico | |||
Europe | United Kingdom | ||
Germany | |||
France | |||
Italy | |||
Spain | |||
Netherlands | |||
Rest of Europe | |||
Asia-Pacific | China | ||
Japan | |||
India | |||
South Korea | |||
Singapore | |||
Australia | |||
Malaysia | |||
Rest of Asia-Pacific | |||
South America | Brazil | ||
Argentina | |||
Rest of South America | |||
Middle East | UAE | ||
Saudi Arabia | |||
Turkey | |||
Israel | |||
Rest of Middle East | |||
Africa | South Africa | ||
Nigeria | |||
Egypt | |||
Rest of Africa |
Functional-Module Solution | Individual Module |
All-in-One Module | |
Services | Consulting and Design |
Integration and Deployment | |
Managed and Maintenance |
Disaster Recovery |
Edge / High-Performance Computing |
Data Center Expansion |
Starter / SMB Data Centers |
Artificial Intelligence / Graphical Processing Units Training Pods |
Crypto-Mining and HPC Containers |
Greenfield |
Brownfield |
North America | United States |
Canada | |
Mexico | |
Europe | United Kingdom |
Germany | |
France | |
Italy | |
Spain | |
Netherlands | |
Rest of Europe | |
Asia-Pacific | China |
Japan | |
India | |
South Korea | |
Singapore | |
Australia | |
Malaysia | |
Rest of Asia-Pacific | |
South America | Brazil |
Argentina | |
Rest of South America | |
Middle East | UAE |
Saudi Arabia | |
Turkey | |
Israel | |
Rest of Middle East | |
Africa | South Africa |
Nigeria | |
Egypt | |
Rest of Africa |
Key Questions Answered in the Report
How big is the Modular Data Center Market?
The Modular Data Center Market size is expected to reach USD 36.04 billion in 2025 and grow at a CAGR of 18.78% to reach USD 85.21 billion by 2030.
What is driving the rapid growth of the modular data center market?
AI-related high-density workloads, edge-computing rollouts, and hyperscale cloud expansions account for the bulk of demand, propelling an 18.78% CAGR through 2030.
How large will the modular data center market be by 2030?
Forecasts place the market at USD 85.21 billion by 2030, a 2.36× jump from 2025 levels.
Which region will grow fastest in the modular data center market?
Asia-Pacific leads with a projected 21.23% CAGR thanks to 5G adoption and accelerating digital-transformation programs.
Which region has the biggest share in Modular Data Center Market?
They grow at 22.65% CAGR because factory-built modules with liquid cooling can support 100 kW-plus racks, meeting the thermal and power needs of modern GPU clusters.
How do greenfield and brownfield strategies differ for modular builds?
Brownfield retrofits leverage existing sites for speed and cost efficiency, whereas greenfield campuses allow purpose-built layouts that optimise power delivery and cooling for future GPU generations.
What cooling technologies are emerging in modular data centers?
Direct-to-chip and immersion liquid cooling dominate new designs, lowering partial PUE below 1.05 and enabling rack densities above 150 kW.