DELRAY BEACH, Fla., Sept. 22, 2026 /PRNewswire/ -- According to MarketsandMarkets™, the global Modular Data Center Market is expected to grow from USD 41.0 billion in 2026 to USD 93.6 billion by 2031 at a compound annual growth rate of 18.0% during the forecast period.
Browse 358 market data Tables and 72 Figures spread through 384 Pages and in-depth TOC on 'Modular Data Center Market – Global Forecast to 2031'
Modular Data Center Market Size & Forecast:
- Market Size Available for Years: 2021–2031
- 2025 Market Size: USD 34.9 billion
- 2026 Market Size: USD 41.0 billion
- 2031 Projected Market Size: USD 93.6 billion
- CAGR (2026–2031): 18.0%
Modular Data Center Market Trends & Insights:
- Market is driven by the increasing demand for scalable and rapidly deployable digital infrastructure, growing adoption of cloud computing, and the proliferation of AI-driven applications.
- The solution segment is expected to hold the largest market value of USD 29,852.4 million by 2026.
- The all-in-one data center segment is projected to grow at the highest CAGR of 19.6% during the forecast period.
- The skid-mounted systems segment is projected to grow at the fastest rate at a CAGR of 21.2% during the forecast period.
- By end user, the enterprise data center is expected to account for USD 7,993.1 million in 2025.
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The growing integration of AI and machine learning is expected to drive significant growth in the global Modular Data Center Market. End users, including cloud service providers, telecommunications operators, hyperscale data center operators, and enterprises across BFSI, IT & ITeS, healthcare, manufacturing, and other industries, are increasingly adopting modular data centers to support scalable infrastructure deployment, streamline operations, and optimizing costs. The rapid expansion of AI workloads, advanced analytics, and automation is accelerating investments in modular data center solutions that can accommodate increasing computing and power requirements while enabling faster capacity expansion. The integration of AI-enabled monitoring, automation, and predictive analytics is also improving infrastructure management and real-time operational visibility.
By solution type, all-in-one module is expected to grow at the highest CAGR during the forecast period.
By solution type, the all-in-one modular data center segment is expected to grow at the highest CAGR in the global market. These modules integrate IT racks, power distribution, cooling systems, fire suppression, security, and monitoring within a single prefabricated enclosure, enabling faster commissioning and simplified site preparation. Demand for this format is increasing among enterprises, telecom operators, and government entities that require compact, self-contained infrastructure for rapid digital service rollout. All-in-one modules are particularly suitable for remote locations, industrial zones, and secondary cities where building large-scale facilities may not be practical. Their standardized design supports predictable performance in high-temperature environments while reducing dependency on extensive civil construction. As organizations prioritize shorter deployment cycles and phased expansion strategies, the all-in-one configuration is emerging as a preferred approach for distributed and edge-oriented digital infrastructure projects across the Kingdom.
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As per form factor, enclosures hold the largest share during the forecast period.
By form factor, enclosures are expected to hold the largest market value in the global Modular Data Center Market. Enclosures form the structural foundation of modular deployments, housing IT racks, power systems, cooling units, and security components within a controlled and protected environment. Their demand is higher because every modular installation, whether partial or fully integrated, requires a robust physical structure designed to withstand the Kingdom's harsh climatic conditions, including high temperatures, dust, and sand exposure. Enterprises and telecom operators prefer enclosure-based modules as they provide flexibility to customize internal configurations based on workload requirements. Additionally, enclosure solutions support both permanent and semi-permanent installations, making them suitable for hyperscale expansions as well as edge deployments. Since enclosures represent a significant portion of total project cost and are essential to overall system integrity, they account for the largest share of market value within the form factor segment.
Asia Pacific is expected to register the fastest growth during the forecast period
Asia Pacific is expected to register the fastest growth in the Modular Data Center Market during the forecast period, driven by rapid digitalization, cloud adoption, AI infrastructure expansion, and increasing investments in data center capacity. Countries such as China, India, Japan, Singapore, Australia, and South Korea are witnessing growing demand for hyperscale, colocation, edge, and enterprise data center infrastructure. The need for rapidly deployable and scalable facilities is encouraging operators to adopt modular solutions that can reduce construction timelines and support incremental capacity expansion. Growing AI and high-performance computing workloads are further increasing demand for high-density modular infrastructure with advanced power and cooling systems. In addition, land constraints, power availability challenges, and the need to deploy infrastructure closer to end users are supporting the adoption of prefabricated, containerized, and edge modular data centers. Increasing investments by cloud service providers, hyperscalers, telecom operators, and enterprises are expected to create significant opportunities for modular data center vendors across the region. These factors, combined with the expansion of digital infrastructure in emerging Asian markets, are expected to make Asia Pacific the fastest-growing regional market during the forecast period.
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Top Companies in Modular Data Center Market:
The Top Companies in Modular Data Center Market are Dell Technologies (US), Vertiv (US), Schneider Electric (France), Huawei (China), Delta Electronics (Taiwan), Eaton (Ireland), Rittal (Germany), Siemens (Germany), Johnson Controls (Ireland), STULZ (Germany), Mitsubishi Electric (Japan), and ABB (Switzerland).
Modular Data Center Market - Investment & funding + Merger & Acquisition
Investment and Funding Context
The global Modular Data Center Market is attracting strong investment as hyperscalers, cloud providers, colocation operators, and enterprises seek faster ways to expand capacity for AI, high-performance computing, and edge workloads. Investment is increasingly directed toward prefabricated power and cooling systems, integrated IT modules, high-density AI pods, and factory-based manufacturing capacity. JLL estimates that annual sales of modular systems and micro data centers could reach USD 48 billion by 2030, reflecting the industry's shift toward standardized, assembly-at-scale deployment.
Capital is also moving toward companies that can reduce deployment timelines and address power and cooling requirements for AI infrastructure. For example, EPG secured more than USD 100 million in Series B+ funding in March 2026 to expand its international manufacturing, R&D, and delivery capabilities. Eaton has also expanded its modular strategy through its Fibrebond acquisition and investment in Flexnode, while Vertiv acquired BMarko to strengthen structural fabrication and prefabricated infrastructure capacity.
Revenue Shift Context
The market is shifting from conventional, site-built data center infrastructure toward prefabricated, standardized, and repeatable modular architectures. AI workloads are accelerating this transition because operators require higher power density, advanced cooling, and shorter deployment cycles. Prefabricated modules can move power, cooling, and IT integration into controlled factory environments, reducing onsite work and improving deployment consistency. Industry estimates indicate that highly modular projects can significantly shorten construction schedules compared with conventional builds.
Revenue opportunities are consequently expanding beyond conventional IT modules toward integrated power modules, liquid-cooling systems, AI-ready compute pods, monitoring, and lifecycle services. The growing adoption of high-density AI infrastructure is particularly increasing demand for liquid-cooled modular designs and scalable power architectures. This is encouraging vendors to move toward integrated grid-to-chip solutions and standardized modules that can be deployed incrementally across hyperscale, enterprise, and edge environments.
Mergers and Acquisitions
Mergers, acquisitions, and strategic investments are increasingly shaping the Modular Data Center Market as infrastructure providers seek to strengthen prefabrication, power, cooling, and AI-ready infrastructure capabilities. Recent activity is focused on expanding vertically integrated modular offerings and accelerating deployment capacity.
MODULAR DATA CENTER MARKET: MERGERS AND ACQUISITIONS, AUGUST 2025–APRIL 2026
Company Revenue Share Details
The global Modular Data Center Market is moderately consolidated, with leading infrastructure providers competing across prefabricated IT modules, power systems, cooling, racks, integrated infrastructure, and deployment services. Major participants include Schneider Electric, Vertiv, Eaton, Huawei, Delta Electronics, Rittal, ABB, STULZ, and Caterpillar, alongside specialized modular data center providers such as EPG and other regional manufacturers.