Powering the Digital Revolution: Modular Data Centers Set to Reach $41.87 Billion Investment by 2028

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Arizton’s most recent research report on Feb 2024 reveals that the global modular data center market, valued at USD 18.64 billion in 2022, is poised for significant growth, projected to reach USD 41.87 billion by 2028, reflecting a robust CAGR of 14.44% throughout the forecast period. This surge underscores the escalating demand for scalable and energy-efficient data storage solutions. The market’s momentum is further propelled by the widespread adoption of cloud services, big data, IoT, and artificial intelligence (AI), with an emphasis on rapid deployment and cost-efficiency driving expansion.

Modular data centers represent a revolution in data infrastructure, resembling pre-built tech houses equipped with all necessary components for servers and networks, including power and cooling systems. They encompass various types, such as container data centers, prefabricated data centers, and ready-made data rooms integrated with power and cooling modules. Often associated with containers, these modular solutions encapsulate IT, power, and cooling modules within standardized enclosures, offering versatility in size, form, and shape to cater to diverse requirements.

Trends in Increasing Modular Data Center Design & Deployment

  • Addressing Challenges: Modular data center buildouts are addressing challenges such as high Power Usage Effectiveness (PUE), rising operational costs in traditional data centers, and significant environmental impact.
  • Plug-and-Play Deployment: Deploying modular data centers through a templatized plug-and-play approach simplifies material requirements, minimizing wastage and streamlining the construction process.
  • Design Innovation: Continuous evolution in data center design and engineering by industry leaders and architecture firms is driving innovation in green data center development and operation.
  • 5G Deployment Influence: Countries with widespread 5G deployment, including Australia, the US, and China, are witnessing the development of performance-optimized data center (POD) facilities to meet increasing demands.
  • Modular Deployments in Developing Regions: Developing regions such as Latin America, Eastern Europe, Southeast Asia, and the Middle East & Africa are embracing modular deployments to promote environmentally friendly operations.

Sustainability Initiatives Reshaping the Data Center Market

The escalating power consumption of data centers and the imperative to reduce carbon emissions have spurred a wave of sustainability initiatives among data center service providers. Leading global and local operators such as Meta (Facebook), Microsoft, Google, Amazon Web Services (AWS), CyrusOne, Digital Realty, Equinix, Iron Mountain, Vantage Data Centers, STACK Infrastructure, and QTS Realty Trust are increasingly investing in clean and renewable energy sources to power both their existing and upcoming facilities. Moreover, a growing number of smaller data center operators are embracing sustainability by installing solar panels atop their facilities.

The adoption of renewable energy sources is not only reshaping data center operations but also influencing data center design practices. This shift is expected to redefine the installation and commissioning processes while augmenting physical security requirements, especially in scenarios involving on-site power generation. As the industry continues to prioritize sustainability, the integration of renewable energy sources is poised to play a pivotal role in shaping the future of data center infrastructure.

Modular Data Center Vendors Insights

1. JLL, Schneider Electric, and Lumen Technologies Partnership

  • In November 2023, JLL forged a partnership with Schneider Electric and Lumen Technologies to develop ready-to-use modular data centers in the US.
  • This collaboration prioritizes factors like rapid deployment of prefabricated modular data centers and the adaptability and scalability of facilities.

2. EdgeCloudLink (ECL) Hydrogen-Powered Modular Data Centers

  • In January 2023, EdgeCloudLink (ECL) announced plans to offer modular data centers powered by hydrogen.
  • These off-grid modular data centers, leveraging advanced 3D printing technology, aim to provide a power capacity of 1 MW.

3. OVHcloud Data Center Expansion in Toronto

  • OVHcloud unveiled plans to expand its data center facility in Toronto in November 2023, with operations slated to commence by 2025.

4. Modular Data Centers in Brazil’s Expansion in Latin America

  • In July 2023, Modular Data Centers in Brazil secured a contract for approximately 12 MW of data center projects across Latin America.
  • These projects encompass enterprise, edge, and hyperscale sites in Chile, Colombia, and Mexico, supporting various functions from preparation to assembly of modular data center solutions.

5. Vertiv and Modular Data Centers Partnership

  • In June 2023, Vertiv partnered with Modular Data Centers, a leading Latin American company, to deliver thermal and power management solutions for essential infrastructure.
  • The collaboration focuses on leveraging Modular’s expertise in designing, manufacturing, and integrating modular prefabricated data centers ranging from 0.6 kW to 1.2 kW in capacity, with operations spanning Brazil, Mexico, Chile, Colombia, and Peru.

Vendors Lists

The comprises major vendors including ABB, ATOS, Cisco Systems, Dell Technologies, Delta Electronics, Eaton, Hewlett Packard Enterprise (HPE), Huawei Technologies, IBM, Rittal, Schneider Electric, Stulz, and Vertiv.

Other Prominent Vendors include USDC Technology, 3data, Actemium, American Portwell Technology, American Tower, Attom Technology, AtlasEdge, Automation, BASELAYER (IE Corporation), Bladeroom Data Centres, BMarko Structures, Box Modul,… and ZTE.

Media Contact
Universal Smart Data Center Technology
Phone: (+84) 28 73080708
Email: info@usdc.vn

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