Modular Data Center Market Opportunities in Smart City Projects

The global modular data center market was valued at USD 29.04 billion in 2024 and is projected to reach USD 75.77 billion by 2030, expanding at a CAGR of 17.4% from 2025 to 2030. This growth is fueled by the surging need for scalable, energy-efficient data center solutions to meet the increasing demands of data generation and processing.

Organizations are turning to modular data centers as a flexible, cost-effective alternative to traditional data center infrastructures. These modular systems utilize prefabricated and pre-engineered components, enabling rapid deployment, shortened construction timelines, and efficient scalability. The proliferation of cloud computing, edge computing, and IoT technologies is also accelerating market growth, as these applications require decentralized and easily expandable infrastructure models.

Sustainability has become a key consideration for enterprises, prompting greater interest in modular data centers due to their superior energy efficiency and lower operational costs. Their robust design, ease of maintenance, and adaptability to harsh environments make them particularly appealing across industries such as telecommunications, IT, healthcare, and government.

Energy efficiency is a significant driver for the adoption of modular data centers. With rising pressure on businesses to cut operational expenses and comply with environmental standards, these facilities offer clear advantages. They feature advanced cooling systems, optimized airflow designs, and energy-saving technologies, which help reduce power usage and minimize environmental impact when compared to conventional data centers.

Key Market Insights:

• North America accounted for the largest share of the modular data center market in 2024, with 41.0% of global revenue.
• The U.S. is projected to see notable growth from 2025 to 2030.
• By component, the solution segment led the market in 2024, contributing over 80% of total revenue.
• By enterprise size, large enterprises held the dominant share in 2024.
• By end-use, the IT & telecom sector emerged as the largest segment in 2024.

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Market Size & Forecast:

• 2024 Market Size: USD 29.04 Billion
• 2030 Projected Market Size: USD 75.77 Billion
• CAGR (2025–2030): 17.4%
• Largest Market in 2024: North America

Key Companies & Market Share Insights:

Prominent players in the modular data center space include Cannon Technologies Ltd., Dell Inc., Eaton, Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd., IE Corp., PCX Holding LLC, Rittal GmbH & Co. KG, Schneider Electric, and Vertiv Group Corp. These companies are investing in innovation, partnerships, and expansion strategies to enhance their competitive positioning.

Noteworthy Developments:

• Vertiv has launched the Vertiv MegaMod CoolChip, a prefabricated modular data center solution with integrated liquid cooling technology. Tailored for AI computing platforms, it allows for rapid deployment and customization, cutting infrastructure setup time by up to 50%—ideal for meeting urgent demands in AI-ready digital environments.
• In March 2024, Eaton introduced its SmartRack modular data center solution in North America. Designed for fast deployment in applications like AI, machine learning, and edge computing, the SmartRack system integrates IT racks, cooling systems, and service enclosures into a single modular unit. It supports power loads up to 150 kW and can be deployed within days, offering flexibility for a wide range of environments including manufacturing plants, colocation centers, and warehouses.

Key Players:

• Cannon Technologies Ltd.
• Dell Inc.
• Eaton
• Hewlett Packard Enterprise Development LP
• Huawei Technologies Co., Ltd.
• IE Corp.
• PCX Holding LLC
• Rittal GmbH & Co. KG
• Schneider Electric
• Vertiv Group Corp.

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Conclusion:

The modular data center market is experiencing robust growth, driven by increasing data demands, technological advancements, and a strong push toward energy efficiency and sustainability. With their scalability, speed of deployment, and environmental benefits, modular data centers are poised to become the backbone of next-generation IT infrastructure.