Demand for prefabricated modular and micro data center solutions accelerated by AI, finds Omdia

LONDON, July 22, 2024 /PRNewswire/ — New Omdia research reveals that the market for prefabricated modular and micro data centers will reach $11.7bn by 2027, with growth peaking in 2023 and 2024, fueled by the need to speed-up data center builds in the wake of the AI boom.

The prefabricated modular data centers (PMDC) market comprises of single and multi-module structures which can have one function (e.g. power, cooling) or all data center functions (e.g. all-in-one). Omdia expects $8.6bn of PMDC sales in 2027. The largest category in the market, prefabricated power modules, grew the fastest among all module types tracked by Omdia as it enabled both new data center builds and the expansion of existing data centers’ power capacity.

Micro-modular data centers (micro-DCs) comprise of single and multi-module designs, which are shipped pre-integrated by the supplier. Omdia expects $3.1B of micro-modular DC sales in 2027. “Micro-DCs are appealing to both cloud service providers and enterprises” highlighted Vlad Galabov, Cloud and Data Center Research Director at Omdia. “Hyperscale cloud service providers were early adopters of multi-rack micro-DCs. Offsite pre-integration sped up on-site installation. Following my recent visit to a Tencent data center in Tianjin, China in 2018, the teams  had already deployed multi-rack micro-DCs at scale and were eager to share learnings on their intentions to increase their use of PMDC and micro-DC solutions in the future.”

Huawei is the leader in the global PMDC market, followed by Schneider Electric and Vertiv. Johnson Controls, Schneider Electric, and M.C. Dean are the three largest vendors in North America. Vertiv and Rittal are the two largest vendors in Western Europe, while Huawei is the largest vendor in Asia & Oceania and the Rest of EMEA. The micro-DC market is significantly more diverse due to its lower barriers of entry. Huawei is the market leader though Vertiv and DTCT follow close behind.  

“We expect PMDC and micro-DC innovation to continue, with a focus on high power density to support highly configured servers optimized for AI workloads,” highlighted Siraj Aziz, the analyst leading Omdia’s PMDC and micro-DC research. “Integration of liquid cooling and batteries are two key innovation areas we anticipate.”

ABOUT OMDIA

Omdia, part of Informa Tech, is a technology research and advisory group. Our deep knowledge of tech markets combined with our actionable insights empower organizations to make smart growth decisions.  Fasiha Khan [email protected] 

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SOURCE Omdia