Modular data center

Modulation is not limited to technology but has found its new place in the world of data center design. Modular data center, also called a prefabricated data center, is a portable collection of all the components required for deploying data center capacity. Their profitability and fast setup properties have increased demand in oil rigs and military operations.

What Is the Market Growth?

The global modular data center market was valued at USD 21.46 billion in 2022 and is anticipated to achieve USD 106.34 billion at a CAGR of 17.4% during the forecast period. The market is gaining high traction due to the growing demand for advanced prefabricated and green data center infrastructures across various sectors, including healthcare and IT & telecom. Also, increasing R&D activities by key market companies and growing government investment and support for the advancement of data centers worldwide are predicted to accelerate the market growth during the forecast period.

Top Modular Data Center Market Trends

  • Increasing demand for edge computing: Edge computing has gained significant expansion. Modular data centers are well-suited for edge deployments as they can be easily deployed in remote locations or areas with limited space.
  • Rising demand for advanced prefabricated data centers: Prefabricated modular data centers are becoming more popular as they reduce construction time and costs while maintaining high quality and reliability. In this approach, entire data center modules are manufactured off-site and then assembled on-site.
  • Energy efficiency and green modular data centers: Modular data centers are being designed with energy-efficient technologies, such as efficient cooling systems, power management solutions, and renewable energy integration, to reduce their environmental impact.
  • Surge in modular data center adoption in emerging markets: Modular data centers are gaining traction in emerging markets where there is a need for rapid data center deployments.
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Modular data centers find applications in a range of industries. Some of the key industries where modular data centers are used include:

  • Information Technology (IT) and Telecommunications
  • Banking, Financial Services, and Insurance (BFSI)
  • Healthcare and Life Sciences
  • Manufacturing and Industrial
  • Energy and Utilities
  • Retail and E-commerce
  • Government and Public Sector
  • Education and Research Institutions
  • Media and Entertainment
  • Transportation and Logistics

Which Region Leads the Market?

The demand in Asia Pacific is anticipated to witness significant growth

The Asia Pacific is expected to experience the fastest compound annual growth rate (CAGR) in the coming years. This growth is primarily attributed to a significant number of favorable government policies and the necessity to upgrade existing data centers, particularly in emerging economies such as China, South Korea, Indonesia, and India. Additionally, the region is witnessing rapid expansion in the number of small and medium-sized enterprises (SMEs) and startups across various countries in the Asia Pacific.

Recent Developments

  • In September 2022, Vertiv Group unveiled its Vertiv data center offerings in India. These newly integrated solutions provide flexible platforms that are highly optimized for deploying IT assets while also offering a fast and straightforward installation process. The data centers utilize advanced thermal management capabilities and state-of-the-art monitoring and control technologies.
  • In September 2022, Schneider Electric introduced its latest comprehensive solution, known as “all-in-one” data centers. These data centers are standardized and pre-tested mobile container solutions available in four different designs and various configurations. They provide exceptional value for businesses and IT organizations, catering to diverse needs and requirements.
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Future Outlook

The future of the modular data center market appears promising, driven by the increasing need for scalable, flexible, and cost-effective data center solutions. As a result, the market is anticipated to experience significant growth and innovation in the coming years, creating opportunities for vendors and organizations alike.

By Apurva Nagare

Anthony is a passionate and versatile content writer at Polaris News Blog. With a passion for storytelling and keen eye to detail, he creates content that transcends the mundane and resonates with the audience. Anthony brings with him a vast experience in digital content creation and specializes in SEO, website and social media content. His diverse expertise allows him to craft engaging and informative content across various niches. When he's not writing, you'll find Anthony exploring the great outdoors, indulging in his love for photography, or immersing himself in a good book.