Delray Beach – September 22, 2026 -- The global modular data center market is projected to grow from $41.0 billion in 2026 to $93.6 billion by 2031, expanding at a compound annual growth rate of 18.0%, according to a new MarketsandMarkets report. The market stood at $34.9 billion in 2025, underscoring an accelerating pace of adoption driven by AI workloads and cloud infrastructure buildouts.
Solution segment dominates as AI deployment demand climbs
The solution segment is set to command $29.85 billion of market value by 2026, the largest share among segment categories. All-in-one modular data centers, which integrate IT racks, power distribution, cooling, fire suppression and security into a single prefabricated enclosure, are forecast to post the highest CAGR at 19.6% through 2031. Skid-mounted systems will grow even faster, at 21.2% annually, as operators seek compact, self-contained infrastructure for rapid rollout in remote and edge locations.
Enclosures anchor form factor spending as enterprise demand rises
Enclosures are expected to hold the largest share of the form factor segment, forming the structural base for modular deployments housing IT racks, power systems and cooling units. Enterprise data centers are projected to account for $7.99 billion of end-user spending in 2025, as BFSI, IT & ITeS, healthcare and manufacturing firms pursue scalable, cost-optimized capacity expansion.
Asia Pacific emerges as fastest-growing region on hyperscale investment
Asia Pacific is set to register the fastest regional growth, fueled by digitalization, cloud adoption and AI infrastructure expansion across China, India, Japan, Singapore, Australia and South Korea. Land constraints and power availability challenges are pushing operators toward prefabricated, containerized and edge modular formats that shorten construction timelines versus conventional builds.
JLL projects $48 billion modular systems market by 2030 as capital shifts
Real estate services firm JLL estimates annual sales of modular systems and micro data centers could reach $48 billion by 2030, reflecting an industry-wide shift toward standardized, assembly-at-scale deployment. Capital is increasingly flowing to companies that compress deployment timelines and address AI-driven power and cooling demands.
Eaton, Vertiv expand modular capacity through acquisitions
EPG raised more than $100 million in Series B+ funding in March 2026 to expand international manufacturing, R&D and delivery operations. Eaton broadened its modular strategy through its Fibrebond acquisition and an investment in Flexnode, while Vertiv acquired BMarko to strengthen structural fabrication and prefabricated infrastructure capacity. Mergers and acquisitions tracked between August 2025 and April 2026 point to vendors consolidating vertically integrated modular offerings spanning power, cooling and AI-ready compute pods.
Market remains moderately consolidated among established infrastructure vendors
Leading participants include Dell Technologies, Vertiv, Schneider Electric, Huawei, Delta Electronics, Eaton, Rittal, Siemens, Johnson Controls, STULZ, Mitsubishi Electric and ABB, alongside specialized providers such as EPG and Caterpillar. Competition spans prefabricated IT modules, power systems, cooling, racks and integrated deployment services, with revenue opportunities expanding toward liquid-cooling systems and grid-to-chip solutions as high-density AI infrastructure adoption accelerates.