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Modular Data Center Market Size & Share 2026-2035

Report ID: GMI1730
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Published Date: October 2026
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Modular Data Center Market Size

The modular data center market was valued at USD 35 billion in 2025, is projected to reach USD 46.4 billion in 2026, and is expected to expand at a 18.6% CAGR (2026–2035) to reach USD 215.1 billion by 2035. The market covers prefabricated, factory-built infrastructure integrating IT, power, and cooling systems in portable modules for standalone facilities and data center expansions.

Modular Data Center Market Key Takeaways

2025 Market Size
$ 35 Billion
2026 Market Size
$ 46.4 Billion
2035 Forecast Market Size
$ 215.1 Billion
CAGR (2026–2035)
18.6%
Regional Dominance
Largest Market
North America
Fastest Growing Region
Middle East & Africa
Key Players
  • Market Leader: Vertiv Holdings Co. led with over 14% market share in 2025.

  • Leading Players: Top 5 players in this market include Vertiv Holdings Co., Schneider Electric, Huawei Digital Power, Eaton Corporation, ABB Ltd., which collectively held a market share of 49% in 2025.

The modular data center market is being reshaped by the need to commission compute capacity faster than conventional construction allows. Hyperscale expansion, AI workloads, and distributed enterprise requirements are raising the value of factory integration, repeatable deployment designs, and staged capacity additions. The addressable market includes modular IT, power, and cooling infrastructure, integrated containerized systems, and associated professional services; traditional construction, standalone IT hardware, and cloud software services remain outside its scope.

GMI Analyst View

Based on our analysis of deployment activity across the historic period, the global market generated USD 16.0 billion in 2022. We view the subsequent expansion as evidence that modular procurement has become a strategic capacity-delivery model rather than a contingency option, particularly where operators must align infrastructure commissioning with fast-moving compute demand.

Modular Data Center Market Trends, Growth Drivers & GMI Forecast Outlook

AI-led capacity requirements are accelerating demand for infrastructure that can be engineered, manufactured, and commissioned in parallel with site preparation. Modular delivery improves the ability to stage projects, but grid access, specialist labor availability, and cooling customization will determine how quickly committed capital becomes operating capacity.

Key Drivers

Driver Evidence signal Market-demand implication GMI forecast condition
Surging global data centre power demand driven by AI-intensive workloads and hyperscale infrastructure rollout IEA projects global data centre electricity consumption to reach 945 TWh by 2030, nearly doubling from the 2024 baseline [1] Operators face grid capacity timelines far longer than capacity urgency allows; modular infrastructure's 8–16 week delivery window becomes a primary selection criterion over 18–36 month conventional construction If accelerated-server deployment sustains double-digit annual growth through 2027, above-20 MW hyperscale modular configurations capture a disproportionate share of incremental capex, sustaining above-market segment outperformance through the near-term buildout phase
Rapid U.S. data centre capacity expansion driven by AI server deployment and cloud infrastructure renewal U.S. data centres consumed 176 TWh in 2023, with LBNL modelling projecting substantial multi-fold growth in national data centre power draw by 2028 [2] Urgency of large capacity additions in North America favours modular solutions that can bypass greenfield permitting bottlenecks and achieve commissioning within a single fiscal year Sustained front-loaded North American growth through 2027, tapering as competing geographies absorb investment and power availability normalises in Tier 1 markets, supports near-term North America outperformance against the global forecast trajectory
AI inference at the edge and private 5G proliferation generating distributed compute requirements at industrial and healthcare sites Sub-100ms latency constraints for AI inference necessitate local compute proximity in environments where conventional construction is impractical Prefabricated, standards-compliant enclosures deployable at remote and industrial sites without onsite civil construction broaden the addressable opportunity beyond traditional data centre campuses Rising share of inference versus training workloads through the 2030s prolongs above-market growth for edge and medium-density modular configurations beyond the near-term hyperscale buildout cycle

*Evidence anchors use cited external data; demand implications and forecast conditions represent GMI analysis.*

Factory-built systems address a procurement mismatch: capacity demand can emerge much faster than a conventional civil-build schedule can absorb. This favors vendors that can standardize electrical and thermal architectures without sacrificing the integration flexibility required by large operators.

The opportunity is not confined to centralized campuses. Inference workloads, private wireless deployments, and operational technology applications require compute closer to industrial, healthcare, and remote operating environments. That demand broadens the role of modular enclosures and smaller capacity blocks where site conditions make conventional builds uneconomic or impractical.

Key Restraints

Restraint Evidence signal Market-demand implication GMI forecast condition
Persistent shortage of qualified data centre technicians and specialized electrical trades constraining deployment velocity Uptime Institute's 2024 Global Data Center Survey found 51% of operators reported difficulty finding qualified candidates to fill technical positions [3] Skilled workforce gaps constrain post-delivery commissioning velocity and increase labor cost inflation across installation and maintenance service lines, compressing margins and extending break-even timelines If workforce shortages persist at current severity, the services segment faces margin compression, and operators in markets with thin labor pools will delay capacity activations even after modular units are delivered, moderating near-term revenue recognition pacing
Power grid constraints and growing data centre share of national electricity demand intensifying procurement lead times in Tier 1 markets LBNL's 2025 update projects U.S. data centres will represent 11.8% of national electricity demand by 2030, reinforcing the trajectory of grid congestion and extended power procurement timelines in the most active deployment markets [4] Multi-year queues for large grid connections in Northern Virginia, Singapore, Germany, and the UK constrain the pace of hyperscale and colocation modular deployments even where factory capacity is available, as power procurement becomes the binding constraint Grid connection uncertainty will moderate deployment velocity in Tier 1 markets through the late 2020s; the constraint is more severe for large-scale configurations requiring dedicated utility connections, partially offsetting hyperscale segment momentum and redistributing marginal growth toward sub-1 MW edge configurations
High-density AI liquid-cooling requirements demanding custom thermal and structural engineering for each deployment High-density AI configurations require custom CDU integration, cold plate design, and dielectric fluid specification, creating precision procurement with extended lead times Customization requirements for liquid cooling erode the speed advantage for AI-optimised hyperscale buyers, adding cost and timeline risk that increases the technical barrier for procurement teams lacking specialized engineering support Adoption will be weighted toward organizations with dedicated procurement and facility engineering expertise through mid-decade; first-time modular buyers in manufacturing and healthcare face conversion lag, tempering end-use diversification through 2027–2028

*Evidence anchors use cited external data; demand implications and forecast conditions represent GMI analysis.*

The labor constraint extends beyond construction crews. Electrical commissioning, controls integration, and thermal validation require specialists whose availability can limit the conversion of delivered modules into billable capacity. Vendors with repeatable field processes and service coverage are therefore better positioned to protect delivery schedules.

Grid interconnection is becoming the binding constraint in high-demand markets, even where factory capacity is available. Liquid-cooled AI deployments add a further engineering layer, making thermal design, equipment qualification, and site-specific commissioning central commercial considerations rather than secondary technical details.

GMI Analyst View

We see the principal market tension in the divergence between high-complexity hyperscale projects and repeatable edge deployments. The former rewards vendors with deep thermal and electrical engineering capabilities, while the latter rewards standardized products and dependable field execution. Suppliers able to maintain distinct operating models for both demand patterns should be better placed to preserve margins and customer relevance.

Modular Data Center Market Segment Analysis

By Component

Solution revenue in the modular data center market was USD 25.2 billion in 2025 and is projected to reach USD 158.5 billion by 2035. Solutions remain the commercial core of modular deployments because power, cooling, enclosure, and IT integration determine both deployment speed and site performance. Demand increasingly favors platforms that can be configured for changing rack densities while preserving factory-tested interfaces.

Global Modular Data Center Market Size, by Component, 2025 & 2035 (USD Billion)
Global Modular Data Center Market Size, by Component, 2025 & 2035 (USD Billion)

Individual modules generated USD 14.0 billion in 2025 and are projected to expand at a 21.7% CAGR (2026–2035). Individual-module procurement suits sophisticated buyers that want to retain control over equipment selection, qualified suppliers, and refresh cycles. This model is particularly relevant when operators are expanding existing campuses with heterogeneous power and cooling estates.

All-in-one systems held a 32.0% market share in 2025 and are projected to generate USD 58.8 billion by 2035. All-in-one systems reduce integration risk for customers with limited in-house infrastructure engineering resources. Their pre-tested design offers particular value where procurement teams prioritize predictable commissioning over component-level customization.

Services generated USD 9.8 billion in 2025 and are projected to reach USD 56.6 billion by 2035. Services become more consequential as deployed modular fleets spread across sites and incorporate increasingly specialized electrical, controls, and cooling equipment. The recurring value lies in maintaining availability and coordinating changes across multi-vendor estates.

Installation and deployment services generated USD 4.9 billion in 2025 and are projected to reach USD 28.4 billion by 2035. Installation and deployment work remains labor-intensive despite the shift toward factory assembly. Site acceptance, utility interfaces, controls commissioning, and handover procedures make execution quality a meaningful differentiator among service providers.

Consulting generated USD 2.0 billion in 2025 and is projected to grow at a 19.4% CAGR (2026–2035). Consulting demand is supported by the increasing need to assess power availability, thermal design, equipment specification, and phased build strategies before orders are released. Advisory capability can also influence whether customers choose all-in-one or individually specified architectures.

Maintenance and support generated USD 2.9 billion in 2025 and is projected to reach USD 16.4 billion by 2035. Maintenance and support requirements rise with the installed base of mission-critical modular power and cooling assets. Certified service coverage, remote monitoring, and parts availability are becoming more influential in supplier selection, especially for distributed deployments.

By Power Capacity

Below-250-kW configurations held an 8.0% share in 2025 and are projected to generate USD 17.2 billion by 2035. These systems serve compact edge, remote industrial, and telecommunications use cases where proximity and resilience matter more than campus-scale density. Their modularity permits localized compute additions without the capital intensity of a large facility.

The 250 kW–1 MW segment generated USD 6.3 billion in 2025 and is projected to expand at a 19.9% CAGR (2026–2035). This capacity tier serves enterprises replacing legacy server rooms, private-cloud installations, and regional facilities requiring staged expansion. Its appeal rests on balancing meaningful compute capacity with a manageable power and site footprint.

The 1–5 MW segment generated USD 10.5 billion in 2025 and is projected to reach USD 62.3 billion by 2035. The band remains a practical configuration for enterprise campuses and regional colocation operators. It supports standardized deployment patterns while giving operators room to add capacity in discrete blocks as customer commitments mature.

The 5–20 MW segment generated USD 9.8 billion in 2025 and is projected to hold a 2035 projected share of 26.6%. This range is aligned with large colocation projects and initial hyperscale campus blocks. Demand depends on buyers' ability to secure utility capacity, which can favor phased modular installations over a single conventional construction program.

Above-20-MW configurations generated USD 5.6 billion in 2025 and are projected to reach USD 39.6 billion by 2035. Large-format modular deployments are increasingly tied to AI-oriented hyperscale campuses, where time-to-power and repeatability across multiple halls are decisive. Suppliers must pair scalable manufacturing with deep expertise in high-density electrical distribution and thermal integration.

By Form Factor

ISO containers generated USD 12.3 billion in 2025 and are projected to reach USD 73.5 billion by 2035. Containerized architectures retain relevance where transportability, freight compatibility, and rapid placement are central project requirements. They are particularly useful in constrained, remote, and temporary operating environments where civil works are difficult to coordinate.

Global Modular Data Center Market Share, by Form Factor, 2025
Global Modular Data Center Market Share, by Form Factor, 2025

The 40-ft ISO container segment generated USD 7.4 billion in 2025 and is projected to reach USD 45.0 billion by 2035. Larger containers are suited to buyers seeking more consolidated capacity per shipment and installation event. Their format can simplify repeatable deployment across campuses where standardized logistics and site layouts are available.

The 20-ft ISO container segment held a 14.0% market share in 2025 and is projected to expand at a 19.2% CAGR (2026–2035). Smaller containers suit tighter sites and distributed deployments where capacity must be placed close to the operational load. Their flexibility is valuable for edge networks and industrial locations with restricted physical footprints.

Skid-mounted systems generated USD 10.5 billion in 2025 and are projected to reach USD 63.7 billion by 2035. Skid-mounted systems are attractive where buyers want factory integration without relying on a shipping-container format. They support campus extensions and industrial projects requiring customized placement around existing power, cooling, or process infrastructure.

Fixed skid-mounted systems generated USD 6.8 billion in 2025 and are projected to reach USD 39.9 billion by 2035. Fixed systems address installations where equipment will operate as a long-lived part of the site estate. Their value proposition is less about relocation and more about reducing construction complexity while preserving standardized engineering.

Portable skid-mounted systems held a 10.6% market share in 2025 and are projected to expand at a 20.4% CAGR (2026–2035). Portable systems address applications with changing site needs, including resource operations, emergency response, and temporary capacity requirements. The format offers customers the option to redeploy infrastructure when project conditions shift.

Enclosures held a 34.9% market share in 2025 and are projected to generate USD 77.9 billion by 2035. Enclosures address modular deployments within existing facilities or purpose-built rooms. They are well suited to customers upgrading rack density and cooling performance without replacing the complete building shell.

High-density enclosures generated USD 4.3 billion in 2025 and are projected to expand at a 23.1% CAGR (2026–2035). High-density designs are increasingly defined by their ability to accommodate GPU-intensive workloads and advanced cooling arrangements. Engineering credibility in structural loading, cooling distribution, and controls integration will separate suppliers in this category.

Medium-density enclosures held a 13.7% market share in 2025 and are projected to reach USD 27.3 billion by 2035. Medium-density products serve the broad base of enterprise infrastructure modernization. They provide an intermediate option for customers increasing compute intensity without immediately adopting the most specialized thermal architectures.

Low-density enclosures generated USD 3.1 billion in 2025 and are projected to hold a 7.5% market share by 2035. Low-density installations continue to serve conventional workloads and cost-sensitive refresh programs. Their relative position is pressured by rising rack densities, yet they remain relevant where power availability and application profiles do not justify advanced cooling investment.

By Data Center

Hyperscale data centers generated USD 14.6 billion in 2025 and are projected to hold a 54.2% revenue share by 2035. Hyperscale buyers are setting increasingly stringent standards for deployment repeatability, density, and supply assurance. Their procurement scale favors vendors able to deliver engineered systems across multiple sites while accommodating evolving server and cooling configurations.

Colocation data centers generated USD 8.8 billion in 2025 and are projected to reach USD 44.2 billion by 2035. Colocation providers use modular infrastructure to add sellable capacity in increments that correspond with tenant demand. This model is especially compelling where power procurement, financing, and customer commitments must be coordinated carefully.

Enterprise data centers held a 22.0% market share in 2025 and are projected to generate USD 30.1 billion by 2035. Enterprise demand centers on modernization, resilience, and support for private infrastructure requirements. Modular systems offer a way to refresh capacity with less operational disruption than a conventional construction-led expansion.

Edge data centers generated USD 3.9 billion in 2025 and are projected to expand at a 20.0% CAGR (2026–2035). Edge demand is tied to applications that require local processing, controlled latency, and resilience outside major data-center campuses. The segment favors compact, robust systems that can operate reliably across diverse site conditions.

By End Use

IT & telecom generated USD 11.2 billion in 2025 and is projected to reach USD 70.6 billion by 2035. IT and telecom buyers have established procurement processes for network expansion, cloud connectivity, and distributed infrastructure. Their experience with capacity planning makes them important early adopters of standardized modular designs.

BFSI held a 15.1% market share in 2025 and is projected to generate USD 31.5 billion by 2035. Financial-services demand is supported by requirements for resilient infrastructure, controlled data environments, and low-latency processing. Modular systems can support phased expansions while reducing disruption to regulated operations.

Energy & utilities is projected to generate USD 22.5 billion by 2035 and expand at a 20.4% CAGR (2026–2035). Grid modernization, distributed generation, and operational analytics create demand for compute closer to field assets. Modular infrastructure can help utilities deploy resilient processing capacity where conventional facility development is not practical.

Government & defense generated USD 2.8 billion in 2025 and is projected to hold a 6.6% market share by 2035. Government and defense projects value secure, deployable, and operationally resilient infrastructure. Procurement complexity and mission-specific qualification requirements can extend sales cycles, but they also raise barriers for less established providers.

Healthcare & life sciences held a 7.1% share in 2025 and is projected to reach USD 15.9 billion by 2035. Healthcare demand is shaped by imaging, clinical data processing, research workloads, and site-level resilience needs. Modular facilities can support local processing where governance and continuity requirements discourage exclusive reliance on remote infrastructure.

Manufacturing & industrial generated USD 3.2 billion in 2025 and is projected to expand at a 20.1% CAGR (2026–2035). Industrial users are adopting compute closer to plants to support automation, robotics, quality control, and operational analytics. These deployments favor systems that can be integrated into demanding environments with limited onsite construction disruption.

Retail & e-commerce held an 8.0% market share in 2025 and is projected to reach USD 18.5 billion by 2035. Retail infrastructure demand reflects the growing importance of inventory intelligence, transaction processing, and localized customer experiences. Modular capacity enables operators to add infrastructure as digital-service volumes and fulfillment networks expand.

Media & entertainment generated USD 2.1 billion in 2025 and is projected to hold a 5.5% market share by 2035. Media and entertainment applications require flexible capacity for content processing, streaming, and interactive workloads. Modular configurations can help operators respond to changing audience demand without committing to long construction cycles.

GMI Analyst View

We believe the central segmentation opportunity lies in the interaction between buyer sophistication and deployment context. Hyperscale operators are likely to continue favoring flexible, highly engineered architectures, while enterprise and edge users will place greater value on repeatability and lifecycle support. This creates a durable advantage for providers that combine product breadth with credible integration and service capability.

Modular Data Center Market Regional Analysis

Global Modular Data Center Market Share, by Region, 2025 & 2035
Global Modular Data Center Market Share, by Region, 2025 & 2035

North America Modular Data Center Market Analysis

The North America modular data center market generated USD 13.3 billion in 2025 and is projected to reach USD 70.3 billion by 2035. North America remains anchored by hyperscale infrastructure investment, established colocation ecosystems, and buyers familiar with prefabricated capacity delivery. Power constraints in established hubs are encouraging development in secondary markets, where modular systems allow capacity to be brought online in more controlled phases.

U.S.

The U.S. generated USD 11.7 billion in 2025 and is projected to reach USD 61.2 billion by 2035. The U.S. market is supported by AI campuses, cloud expansion, and secure public-sector computing requirements. Operators are increasingly valuing systems that can enter the commissioning process while longer utility and permitting work continues.

Canada

Canada is projected to generate USD 9.1 billion by 2035 and held a 12.0% share of North American revenue in 2025. Competitive power conditions, data-localization priorities, and established connectivity markets support Canadian demand. The country offers operators an alternative expansion route when power and land constraints intensify in major U.S. hubs.

Europe Modular Data Center Market Analysis

Europe is projected to hold a 19.7% global share by 2035 and generated USD 7.7 billion in 2025. Europe's modular demand is shaped by a combination of power restrictions, sustainability requirements, and data-governance obligations. Those forces can slow permitting, but they also favor infrastructure with controlled engineering, staged deployment, and clearer energy-performance characteristics.

Germany

Germany generated USD 1.5 billion in 2025 and is projected to expand at a 18.9% CAGR (2026–2035). Germany combines dense interconnection demand with increasingly constrained infrastructure conditions around established hubs. Industrial edge requirements from automotive and manufacturing users create a complementary demand stream beyond colocation-led growth.

UK

The UK is projected to generate USD 8.5 billion by 2035 and held a 22.1% share of European revenue in 2025. London's financial-services and cloud ecosystem sustains demand, while growth outside the core corridor creates opportunities for staged modular deployment. Domestic infrastructure requirements and international cloud investment reinforce one another.

France

France generated USD 1.1 billion in 2025 and is projected to reach USD 5.5 billion by 2035. French demand is concentrated around Paris but is broadening as digital-sovereignty and AI infrastructure priorities encourage additional capacity development. Liquid-cooling-ready modular designs are increasingly relevant for projects preparing for denser compute loads.

Netherlands

The Netherlands is projected to hold an 11.1% European share by 2035 and generated USD 900 million in 2025. The country's connectivity ecosystem continues to attract data-center activity, although local power restrictions are redirecting projects to secondary locations. Modular infrastructure is well suited to projects that must begin at a smaller footprint and expand as power becomes available.

Asia Pacific Modular Data Center Market Analysis

Asia Pacific is projected to generate USD 76.4 billion by 2035 and expand at a 20.4% CAGR (2026–2035). The Asia Pacific modular data center market combines mature capacity markets with high-growth economies building digital infrastructure at scale. This diversity favors adaptable supply chains and product platforms that can serve hyperscale campuses, urban colocation facilities, and distributed enterprise installations.

China

China generated USD 4.0 billion in 2025 and is projected to reach USD 29.0 billion by 2035. Domestic cloud, AI, and digital-infrastructure programs are supporting continued capacity additions. Modular delivery is particularly valuable for projects located in regions selected for land and power availability rather than proximity to mature construction ecosystems.

Japan

Japan generated USD 1.6 billion in 2025 and is projected to expand at a 18.9% CAGR (2026–2035). Japan's market is supported by cloud migration, financial-services infrastructure, and government digital-transformation activity. In the Tokyo region, modular capacity staging can help operators manage uncertain power availability and dense site conditions.

India

India is projected to generate USD 11.5 billion by 2035 and expand at a 24.5% CAGR (2026–2035). India's demand is supported by digital-service growth, domestic cloud development, and data-localization needs. Factory-built systems can reduce dependence on inconsistent local construction conditions while allowing operators to phase investment across markets with varied power reliability.

Australia

Australia generated USD 800 million in 2025 and is projected to reach USD 5.3 billion by 2035. Australia serves as an important connectivity and cloud hub for the Pacific region. Modular capacity additions are useful as operators seek sites beyond established metropolitan centers while managing land and power constraints.

South Korea

South Korea is projected to hold a 6.0% Asia Pacific share by 2035 and expand at a 20.7% CAGR (2026–2035). South Korea's semiconductor, electronics, and AI ecosystems support continued demand for local digital infrastructure. The market rewards systems that can meet high availability expectations while fitting dense urban and industrial operating environments.

Latin America modular data center market Analysis

Latin America generated USD 1.9 billion in 2025 and is projected to reach USD 10.5 billion by 2035. Regional growth is concentrated in markets with expanding cloud investment, financial-services activity, and enterprise digitization. Modular deployment provides a means of addressing demand faster where conventional construction capacity and specialist labor are less readily available.

Brazil

Brazil generated USD 1.0 billion in 2025 and is projected to reach USD 5.5 billion by 2035. Brazil's scale, large enterprise base, and established digital economy position it as the region's core demand center. Data-protection requirements and the availability of renewable-energy resources strengthen the rationale for domestic capacity additions.

Mexico

Mexico held 26.3% of Latin American revenue in 2025 and is projected to generate USD 2.7 billion by 2035. Nearshoring, cloud availability-zone expansion, and cross-border enterprise activity are broadening the country's infrastructure needs. Rapid modular delivery is valuable in emerging hubs where digital investment is advancing faster than local construction capacity.

Middle East & Africa Modular Data Center Market Analysis

Middle East & Africa held a 4.5% global revenue share in 2025 and is projected to expand at a 24.0% CAGR (2026–2035). The region's demand is closely tied to sovereign digital-infrastructure ambitions, cloud investment, and the practical challenges of conventional construction in extreme operating environments. Modular systems offer a route to deploy capacity with greater control over engineering quality, thermal performance, and project timing.

UAE

The UAE generated USD 450 million in 2025 and is projected to reach USD 3.9 billion by 2035. UAE demand is supported by sovereign AI initiatives, hyperscaler investment, and the need for high-density infrastructure suited to demanding climatic conditions. The ability to integrate advanced cooling systems in factory-built configurations supports accelerated project timelines.

Saudi Arabia

Saudi Arabia is projected to generate USD 4.2 billion by 2035 and expand at a 28.2% CAGR (2026–2035). Saudi Arabia's digital transformation programs and large-scale infrastructure ambitions are creating demand for deployable capacity at a pace that favors modular delivery. The market is likely to reward suppliers with local execution capability and high-density design expertise.

South Africa

South Africa held an 11.9% share of Middle East & Africa revenue in 2025 and is projected to reach USD 1.6 billion by 2035. South Africa remains an important data-sovereignty and connectivity market for sub-Saharan Africa. Telecommunications and financial-services demand support modular deployments that can strengthen resilience and extend capacity outside established facilities.

GMI Analyst View

We expect regional demand to become more geographically distributed as power congestion and permitting complexity constrain established hubs, while sovereign investment and digital-service expansion strengthen newer infrastructure markets. This shift should elevate the importance of local execution, climate-specific cooling expertise, and supply-chain reach alongside traditional product performance.

Modular Data Center Market Share & Competitive Landscape

The modular data center market share landscape is moderately concentrated, with the top five suppliers include Vertiv Holdings Co., Schneider Electric, Huawei Digital Power, Eaton Corporation, and ABB Ltd., which collectively held a market share of 49% in 2025. Scale matters because hyperscale and colocation customers require dependable manufacturing capacity, proven power and cooling engineering, service coverage across multiple regions, and the financial strength to support complex delivery commitments.

Vertiv Holdings Co. held a 14% share in 2025. The company's portfolio across power, thermal management, racks, and modular infrastructure supports its position with hyperscale and colocation customers that prefer integrated critical-infrastructure procurement.

Vertiv agreed to acquire Great Lakes Data Racks & Cabinets for USD 200 million in July 2025, strengthening its position in pre-engineered AI-ready rack solutions [6]. The transaction reinforces Vertiv's ability to link rack-level infrastructure with wider power and cooling deployments.

Schneider Electric held a 12% share in 2025. Its modular offerings combine power distribution, cooling, and management capabilities, while its channel network and sustainability-oriented positioning support reach beyond the largest hyperscale accounts.

Schneider's competitive position is particularly relevant where customers require standardized infrastructure with documented energy-management capabilities. Its installed-base relationships can support cross-selling into enterprise modernization and regional colocation projects.

Huawei Digital Power held a 10% share in 2025. Its position is supported by a modular portfolio serving hyperscale, telecom, and enterprise buyers, particularly in markets where localized support capacity and established regional relationships influence procurement outcomes.

Huawei's competitive strength is tied to the ability to combine power, cooling, and integrated modular systems for customers seeking rapid capacity delivery. Its presence in China and growth markets gives it exposure to sovereign and locally anchored infrastructure programs.

Eaton completed the acquisition of Fibrebond for USD 1.4 billion in April 2025 [5]. The transaction adds pre-integrated modular power-enclosure capability, strengthening Eaton's ability to serve data-center, fiber, and utility projects with a more integrated power-infrastructure offering.

ABB brings electrification and automation expertise that is especially relevant to industrial and utility-edge deployments. Delta Electronics, Rittal, and Johnson Controls contribute adjacent power, cooling, enclosure, and building-management capabilities, while regional suppliers such as Inspur Group, ZTE Corporation, and BladeRoom Data Centres address local procurement needs. Emerging providers, including Armada, Compu Dynamics Modular, DataCubes, Edge Modular, Mod42, and ModulEdge, increase competitive pressure in specialized AI, edge, public-sector, and mid-market applications.

Recent Industry Developments

  • April 1, 2025 - Eaton Corporation completed the acquisition of Fibrebond. Eaton acquired the provider of pre-integrated modular power enclosures, expanding its modular power infrastructure capabilities for data center, fiber, and utility deployments [5].
  • July 17, 2025 - Vertiv entered an agreement to acquire Great Lakes Data Racks & Cabinets. The acquisition expands Vertiv's pre-engineered rack capabilities for enterprise, edge, colocation, and hyperscale AI infrastructure applications [6].

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Authors:  Preeti Wadhwani, Satyam Thakare

Frequently Asked Questions (FAQs):

The modular data center market size was estimated at USD 35 billion in 2025 and is expected to reach USD 46.4 billion in 2026.
The market is projected to reach USD 215.1 billion by 2035, growing at a CAGR of 18.6% from 2026 to 2035.
North America currently holds the largest share of the modular data center market in 2025.
Middle East & Africa is projected to be the fastest-growing region during the forecast period.
Some of the major players in modular data center market include Vertiv Holdings Co., Schneider Electric, Huawei Digital Power, Eaton Corporation, ABB Ltd..

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Authors:  Preeti Wadhwani, Satyam Thakare
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