Modular Data Center Market by Growth Trends and Opportunities Analysis to 2027

The government & defense sub-segment in modular data center market held a sizable share in the market in 2020 and is estimated to grow at a notable pace over 2021-2027. Mounting need for secure, scalable, and energy-efficient data centers in the government and defense sector is set to promote the growth of the segment over the assessment timeframe.

For extensive analysis, the modular data center market has been segmented in terms of component, application, and region. With respect to application, the market has further been divided into IT & telecom, BFSI, energy, healthcare, government & defense, industrial, and others.

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Modular data centers are a portable solution for the deployment of data processing capacity whenever needed and can deliver large amounts of energy within a limited time and a small footprint. Modular power units are fabricated and tested in a factory-controlled setting in compliance with project specifications before these fully built, tested, and ready-to-install portable power solutions are transported to site.

The modular data center market is projected to observe robust growth through 2027 owing to prevalent product demand in key regions across the globe. Additionally, surging need for sustainable data processing methods is expected to further support market growth over the forecast period.

The modular data center market to gain rapid expansion due to the versatility, portability, and customizability of modular data centers. Furthermore, as modular data centers have a wide scope for customization, they provide solutions for diverse consumer demands, such as offering options for infrastructure to be on open framed power skid or stored in enclosed switch rooms depending on the application.

With soaring energy costs and consumption, companies are actively seeking more efficient data center solutions. Subsequently, modular power construction is gaining popularity as the preferred construction method for data center upscaling, allowing businesses to adapt to unprecedented industry growth more effectively than before, which has fostered modular data center market outlook.

Integrated by Avnet, an American electronic components distributor, EcoStruxure consists of Iceotope, which gives the module chassis-level precision immersion cooling. Iceotope is the novel prefabricated module that can deploy GPU and CPU-intensive high-performance computing (HPC) edge applications with superior reliability even in remote and harsh environments.

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The Middle East & Africa modular data center market is expected to account for a considerable portion of the overall industry revenue by the end of 2027, registering a solid CAGR through the forecast period. Booming demand for portable infrastructure facilities for fast deployment in the Middle East region is speculated to propel product uptake across MEA in the coming years.

Notably, modular data center market players have been focusing on product innovation and development to expand their offerings, thereby enhancing overall business dynamics. For instance, in June 2021, Schneider Electric, a key firm in digital transformation of automation and energy management, introduced the EcoStruxure Modular Data Center, the first ever liquid-cooled All-In-One Module.

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