Modular Data Centers Projected to Reach $81.56 Billion by 2031
London, Thursday, 20 February 2025.
Modular data centers are set to grow at a 17.9% CAGR by 2031, driven by scalable and energy-efficient demands amid rising edge computing and IoT needs across Europe.
Market Growth and Current Valuation
The global modular data center market, currently valued at $30.27 billion in 2024 [1], is experiencing robust expansion driven by increasing demands for intelligent management and efficient operations. This remarkable growth trajectory is expected to continue, with the market projected to reach $81.56 billion by 2031 [1]. The sector’s impressive 125.3 % total growth over the seven-year period reflects the industry’s rapid evolution and adaptation to changing technological needs [1].
Regional Leadership and Market Dynamics
North America currently dominates the market with a 39% revenue share [3], while Europe maintains a strong position, capturing 29% of the market revenue [3]. The European market’s strength is particularly notable, driven by digital transformation initiatives and strict compliance requirements with regulations such as GDPR [3]. This regional growth is further supported by the surge in data traffic, which is expected to reach 182 zettabytes in 2025, up from 33 zettabytes in 2018 [2].
Innovation and Industry Leaders
Recent developments showcase the industry’s dynamic nature, with major players introducing cutting-edge solutions. In March 2024, Eaton Corporation launched its SmartRack modular data centers, specifically designed for AI and machine learning environments [3]. Similarly, Delta Electronics enhanced their portfolio with the SMART PDU I-Type, focusing on power distribution optimization [3]. The market continues to be shaped by industry leaders including ABB, Schneider Electric, and Huawei Technologies, who are driving innovation in scalable and energy-efficient solutions [3].
Future Outlook and Security Considerations
The industry faces both opportunities and challenges, with cybersecurity becoming increasingly critical. With projected cybersecurity breach costs expected to reach $10.5 trillion by 2025 [2], modular data centers are being designed with advanced security features. The World Economic Forum has ranked cyberattacks among the top five global risks [2], making security a primary consideration in modular data center development. This focus on security, combined with the flexibility and scalability of modular solutions, positions the industry for continued strong growth through 2031 [1].