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All issuesVolume 310, Issue 4IT NewsOperations

Modular Data Centers: When They Work, And When They Don't

Data Center Knowledge, Thursday, January 25th, 2024

While modular data centers present exciting possibilities for the industry, they aren't a one-size-fits-all solution. Explore the scenarios where they truly shine.

Modular data centers are happening. Research from Omdia reveals that revenue for modular facilities built onsite using prefabricated components rose from about $2.3 billion in 2020 to $3.25 billion in 2023. Modular data centers are forecast to experience 13% annual growth through 2026, at which point the market will be worth $5.25 billion.

'Modular data centers address three major concerns of data center deployment: lead time, predictability, and cost,' says Vlad Galabov, director of Cloud and Data Center Research at Omdia. 'They help ensure that a project will be completed at a predetermined quality and cost.'

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