The data center market is on a remarkable trajectory. It’s projected to garner an impressive revenue of $342.10 billion in 2023, with the United States contributing a significant portion at $99.97 billion. This momentum isn’t slowing down anytime soon. Analysts predict that by 2027, the market will further expand to $410.40 billion, boasting a compound annual growth rate (CAGR) of 4.66%, according to Statista.
However, beneath these numbers lies a transformative shift in the industry. A recent report by Research and Market illuminates the skyrocketing growth of the modular data center market. From a valuation of $25.65 billion in 2022, it’s anticipated to nearly double, reaching $48.16 billion by 2026. This robust growth, reflected in a CAGR of 17.1%, can be attributed to the unique strengths modular data centers bring to the table, particularly when compared to their traditional counterparts.
To put things into perspective, consider the conventional data center. On average, it sprawls over a staggering 165,141 net rentable square feet (NRSF). When you factor in the approximate cost of $1.305 per NRSF, the investment needed reaches a significant $215.5 million. Enter the game-changer: modular data centers. These innovative designs, hailed as the cost-saving vanguards of the industry, promise financial savings. By adopting a modular approach, companies can shave off up to 30% of their expenses. Furthermore, they expedite the deployment process, often completing projects in 50% to 70% of the time it would typically take for traditional data center construction, as stated by Trueeventus.
In an era where businesses are continually striving for efficiency and agility, it’s no wonder modular data centers are gaining traction. While the traditional data centers remain foundational, the undeniable advantages of cost reduction, swift deployment, and flexibility offered by modular systems are turning heads in the industry.
Join us in championing the efficiency and innovation of modular data centers as we collectively navigate this ever-evolving sector. For a closer look at what these next-gen facilities entail, explore some of our ConXtech data centers.