Modular Data Center Market to Grow at a CAGR of 16.0% over 2026 to 2034; Rapid Growth of Cloud Services and AI to Drive Market Growth

The global modular data center market size was valued at USD 31.24 billion in 2025. The market is projected to grow from USD 35.44 billion in 2026 to USD 116.53 billion by 2034, exhibiting a CAGR of 16.0% during the forecast period. Fortune Business Insights™ presents this information in its report titled “Modular Data Center Market Size, Share & Industry Analysis, By Component (Solutions (Integrated All-in-One, IT Modules, Power Modules, and Cooling Modules) and Services), By Data Center Size (Small and Medium Data Center and Large Data Center), By Capacity (Below 250 kW, 250 kW to Below 1 MW, and 1 MW and Above), By Industry (BFSI, IT & Telecom, Government, Healthcare, Media & Entertainment, and Others), and Regional Forecast, 2026 – 2034”.

A modular data center is a pre-engineered, self-contained facility that combines IT, power, cooling, security, and monitoring systems in one unit. Driven by the rapid growth of cloud services and AI, it offers faster installation, greater flexibility, and seamless expansion compared to traditional data centers.

The rise of AI is driving adoption of modular data centers by increasing the need for high-performance GPU clusters with rapid deployment capabilities. With integrated power, liquid cooling, and thermal management, modular data centers support efficient, scalable, and faster implementation of AI infrastructure.

Schneider Electric and Compass Datacenters Launched a Prefabricated White-Space Module to Reduce Onsite Installation Complexity

In September 2025, Schneider Electric, in partnership with Compass Datacenters, introduced a prefabricated white-space module built on the EcoStruxure Modular Pod Data Center platform. By integrating power, liquid cooling, containment, cabling, and IT support into a factory-tested solution, it enables faster deployment while reducing onsite construction complexity.

Rising Focus on Development of Large-Scale Modular Campuses to Propel Market Growth

Growing demand for scalable AI and HPC infrastructure is accelerating the adoption of the product. Prefabricated modules with integrated IT, power, and cooling systems allow rapid deployment, easier capacity expansion, and consistent performance across sites, supporting modular data center market growth. Reflecting this trend, in August 2025, Vertiv introduced Vertiv™ CoolCore, a factory-built modular solution combining power, cooling, and IT infrastructure for AI, HPC, and high-density data centers exceeding 5 MW.

However, low availability of power is likely to deter the growth of the market.

Industry Participants Focus on Partnerships to Strengthen Their Market Positions

The market features a semi-consolidated competitive landscape, with leading companies such as Schneider Electric, Vertiv, Huawei, Dell Technologies, and HPE driving innovation through integrated modular solutions that combine IT, power, liquid cooling, security, and monitoring for rapid, scalable AI deployments.

Meanwhile, Eaton, Rittal, Delta Electronics, STULZ, and BladeRoom are strengthening their market positions through strategic collaborations, capacity expansion, acquisitions, and tailored solutions across hyperscale, colocation, edge, telecom, government, and enterprise segments, supporting continued market growth.

List of Key Players Mentioned in the Report

• Schneider Electric SE (France)
• Vertiv Holdings Co. (U.S.)
• Huawei Technologies Co., Ltd. (China)
• Dell Technologies Inc. (U.S.)
• Hewlett Packard Enterprise Development LP (U.S.)
• Eaton Corporation plc (Ireland)
• Rittal GmbH & Co. KG (Germany)
• Delta Electronics, Inc. (Taiwan)
• STULZ GmbH (Germany)
• BladeRoom Group Limited (U.K.)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/industry-reports/modular-data-center-market-100504

Key Industry Development

• May 2025: At the Global Data Center Facility Summit in Dubai, Huawei introduced its AI Data Center solution featuring the PowerPOD modular, prefabricated architecture. With a prefabrication rate exceeding 90%, the solution lowers onsite manpower requirements and enables faster, more efficient data center deployment.

Further Report Findings

• North America captured the key modular data center market share, reaching USD 10.40 billion in 2024 and USD 11.57 billion in 2025. The region’s strong position is supported by hyperscale cloud vendors, colocation providers, rising AI investments, and well-established supply chains. JLL reported that more than 35 GW of data center capacity was under construction in 2025, with 92% already precommitted, reinforcing the growing adoption of modular data center solutions.
• The European market is expected to expand at a 14.6% CAGR to USD 9.61 billion by 2026. Increasing cloud, AI, colocation, and data sovereignty requirements, coupled with power grid limitations, space constraints, sustainability targets, and the need for faster time-to-market, are driving the shift toward factory-built, scalable modular data centers.

Table of Segmentation