The USA Modular Data Center Market
Modular data centers represent a transformative shift in infrastructure, offering prefabricated, scalable units that deploy faster and more efficiently than traditional builds. The US market, valued at USD 7.2 billion in 2024, is poised to reach USD 17.8 billion by 2030, growing at a 16.3% CAGR amid surging AI, edge computing, and cloud demands. This growth underscores immense potential for investors, operators, and enterprises seeking agile, cost-effective data solutions.
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The USA Modular Data Center Market
Traditional data centers often face delays from on-site construction, but modular designs—shipped as complete modules—slash timelines by up to 50%, enabling rapid scaling for hyperscalers like AWS and Google. As AI workloads explode, modular units address power density challenges with integrated cooling and power systems. For colocation providers, they optimize space and capex, while hyperscalers leverage them for edge expansions in remote areas.
In the current US scenario, modulars prove essential amid AI’s explosive workloads—racks exceeding 50kW—straining grids and traditional designs. President Trump’s 2025 energy deregulation accelerates deployments, supporting 153 GW planned capacity where modularity cuts capex by 30% and adapts to power shortages via SMR integration. Edge computing for 5G/autonomous tech demands distributed, rapid setups only modularity provides.
Understanding Data Center Interconnects
Data center interconnect (DCI) markets enhance modular ecosystems by linking facilities for seamless bandwidth sharing. Valued at USD 15.38 billion globally in 2025, DCI is projected to hit USD 25.89 billion by 2030 at an 11% CAGR, with North America dominating due to hyperscale density. DCI uses optical Ethernet and InfiniBand for low-latency connections, vital for AI training across distributed sites.
For colocation operators, DCI reduces silos, enabling multi-tenant bandwidth pooling and hybrid cloud setups. Hyperscalers benefit from DCI in modular deployments by aggregating edge nodes into mega-clusters, cutting latency for real-time apps like autonomous vehicles. Optical interconnects, prevalent in US centers, support 400G+ speeds, future-proofing modular investments.
Market Dynamics and Projections Modular Data Centers
The US modular segment benefits from decentralization trends, with edge computing driving 40% of demand. Forecasts show USD 8.1 billion in 2024 scaling to USD 33.4 billion by 2033 at 15.3% CAGR, propelled by cloud adoption and energy efficiency. AI high-density racks (over 50kW) favor modular’s prefabricated cooling, while sustainability pushes liquid-cooled designs.
Challenges include power grid strains, but opportunities abound in nuclear-powered modulars and incentives like the Inflation Reduction Act. Investors eye REITs and operators for 20%+ returns, given 153 GW planned capacity additions. Operators gain from lower TCO—modulars cut opex by 20-30% via standardization.
State-Wise Modular Data Centers
Development concentrates in power-rich states, with Virginia leading due to tax incentives and fiber density. As of January 2026, the US boasts 576 operating centers (14 GW) and 649 planned (153 GW), many modular for speed. Metro hubs like Northern Virginia and Dallas prioritize hyperscale modulars.
| State | Operating Centers | Planned Capacity (MW) | Key Drivers datacentermap+1 |
| Virginia | 561 | 45,000+ | Tax breaks, fiber hub |
| Texas | 387 | 30,000 | Energy abundance |
| California | 283 | 25,000 | Tech giants, edge needs |
| Illinois | 195 | 15,000 | Logistics central |
| Ohio | 191 | 12,000 | Cost-effective power |
| Georgia | 150 | 10,000 | Southeast growth |
| Arizona | 146 | 8,000 | Renewable solar integration |
| New York | 131 | 7,500 | Finance workloads |
| Oregon | 121 | 6,000 | Hydro power sustainability |
| Florida | 107 | 5,000 | Disaster recovery edge |
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Best modular data center Companies
These 12 firms dominate, offering end-to-end solutions. Details cover portfolios, clients, investments, projects, and executive insights for investor/operator guidance.
Dell Technologies: PowerEdge modular servers integrate AI accelerators; clients include hyperscalers like Microsoft. USD 2B+ annual data infra investment; Wisconsin expansion uses Dell modules. CEO Michael Dell notes, “Modular scales AI without legacy drag”.
Comprehensive modular portfolio includes hyper-converged PowerEdge for edge/AI, scalable to high-density GPUs. Partners with Vertiv/NVIDIA; USD 2B+ investments target federal AI modernization, delivering up to 210kW today scaling to 300kW by 2026 via prefab modules. Helps market by enabling rapid, energy-efficient deployments for healthcare/finance, reducing carbon footprints.
Vertiv: SmartRun prefabricated systems with liquid cooling; serves Google, AWS. March 2025 global launch accelerates deployments; CEO Giordano Albertazzi eyes 20% revenue from modulars amid AI boom.
SmartMod™/SmartRun prefabricated centers with liquid/immersion cooling for HPC/AI; supports 210kW+ loads. NVIDIA partner; 2025-2026 roadmap accelerates federal/mission-critical sites, partnering Dell for 10-18 month deployments. Drives segment via optimized power/cooling, spurring hyperscaler adoption.
Schneider Electric: EcoStruxure Micro Data Centers; NVIDIA partners for AI cooling. USD 44B revenue firm invests billions in prefab; CEO Olivier Blum emphasizes “sustainable scalability for hyperscalers”.
EcoStruxure Micro Data Centers with modular power/cooling; supplies Digital Realty via USD 373M deal for rapid power delivery. Portfolio emphasizes sustainability; plans expand prefab for AI. Boosts efficiency, enabling hyperscalers to meet green mandates.
Hewlett Packard Enterprise (HPE): Aruba edge modulars; clients like Equinix. GreenLake platform expansions target edge; focuses on sovereign cloud modulars.
Aruba Edge-to-Cloud modulars via GreenLake; selected by Digital Realty for 300+ global sites, automating hybrid workloads. Private Cloud Edition standardizes operations; focuses sovereign/edge scalability. Transforms colocation with self-managed resilience.
Eaton: Power modules for resilient setups; Fortune 500 clients. Plans integrate renewables; strong in Texas projects. Critical power management modules with UPS/transfer switches; portfolio aids modular redundancy. Current expansions target edge resilience; helps operators via scalable, fault-tolerant designs reducing downtime 99.999%.
ABB: Electrification for modular power; hyperscaler deals. Future: DC fast-charging analogs for data. Modular electrification/power distribution systems; integrates DC infrastructure for hyperscalers, enabling renewable tie-ins and resilient grids in high-growth Texas/Virginia sites. Plans emphasize efficient, software-defined power for 100kW+ racks, supporting sustainability goals.
DataBank: Custom edge modulars; colocation leader. Multi-GW expansions announced. Prefab edge modulars for colocation; multi-GW US expansions focus hybrid cloud. Serves enterprises with rapid provisioning; bolsters market via affordable, low-latency metro builds.
Excellerate: Microgrid-integrated builds; sustainable focus. Off-site manufacturing cuts costs 25%. Custom modular construction with microgrids; off-site prefab cuts costs 25%. Projects emphasize sustainable, rapid-deployment for SMBs/hyperscalers; advances green modulars.
Digital Realty: ServiceFabric OS powers modular campuses; USD 10B+ pipeline. Virginia/Dallas projects ramp AI capacity. ServiceFabric-powered modular campuses; USD 10B pipeline includes HPE/Schneider integrations for AI. Plans hyperscale expansions; helps via carrier-neutral colocation, fueling 1.5GW+ capacity.
Equinix: xScale modular for hyperscalers; 250+ centers. Edge expansions with DCI integration. xScale modular hyperscale facilities; USD 15B JV with GIC/CPP for 1.5GW US campuses exceeding 100MW each. Flexible Data Center principles cut costs; Silicon Valley SV11 exemplifies modular speed. Leads interconnection, connecting modulars via Metro Connect.
Huawei: FusionModule for efficiency; adapting US compliance. High-density AI portfolios. FusionModule 2000/5000 series for efficiency; high-density cooling/power despite US hurdles. Portfolio targets compliant edge; aids global firms entering US via optimized TCO.
Rittal: IT enclosures/modular racks; liquid cooling leader. Targets US SMB edge market. Liquid-cooled IT enclosures/racks; modular Blue e+ systems. Expansions focus SMB edge; enables quick, high-power setups with energy savings up to 75%.
Operational Insights
Investors favor data center REITs like Digital Realty (yielding 3-4%) for modular exposure, with AI capex projected at USD 1T globally by 2030. Operators prioritize DCI-modular hybrids for 99.999% uptime; position sizing via spreads mirrors trading risks your strategies address. Managements should eye state incentives—Texas offers 10-year tax abatements.
Risks: Grid overloads (mitigate via SMR nuclear tie-ins), cybersecurity in interconnects. Opportunities: Partner with AI firms; Excel models forecast ROI at 15-20% for modular vs. 10% traditional.
Future Outlook of Modular Data Center Market in the US
By 2030, modulars will claim 30% US capacity, enabling zero-carbon edge networks. Policymakers push nuclear co-location; investors track Trump administration’s energy deregulation for faster permits. For Indian operators eyeing US entry, modulars lower barriers amid NSE-like volatility in infra stocks.
FAQs in Modular Data Center Market
What is a modular data center and how does it differ from traditional data centers?
Modular data centers are prefabricated, containerized units integrating servers, cooling, power, and networking, deployable in weeks versus years for traditional on-site builds. They offer scalability by adding modules, cutting costs 30% amid AI-driven demands, as seen in Dell and Vertiv deployments.
What is the projected market size for US modular data centers from 2025 to 2030?
The US modular data center market, valued at USD 7.2 billion in 2024, will reach USD 17.8 billion by 2030 at a 16.3% CAGR, with some forecasts hitting USD 33.4 billion by 2033 due to AI and edge growth.
Which states in the USA lead modular data center development?
Virginia tops with 561 facilities and 45 GW planned capacity, followed by Texas (387 sites, 30 GW) and California (283 sites, 25 GW), driven by power availability, tax incentives, and fiber infrastructure.
Who are the top companies in the US modular data center market and their key portfolios?
Leaders include Dell (PowerEdge AI modulars), Vertiv (SmartRun cooling), Schneider Electric (EcoStruxure), HPE (GreenLake edge), Digital Realty (ServiceFabric campuses), Equinix (xScale hyperscale), ABB/Eaton (power systems), and others like DataBank and Huawei, enabling rapid AI scaling.
Why are modular data centers ideal for the current AI boom in the USA?
They address grid strains and high-density AI racks (up to 300kW) with fast deployment, SMR integration, and DCI interconnects, slashing opex 20-30% while supporting hyperscalers like AWS amid Trump’s energy policies.