China Modular Data Center Market

ID: MRFR/ICT/59402-HCR

200 Pages

Aarti Dhapte

September 2025

China Modular Data Center Market Research Report By Component (Functional Module, Services), By Data Center Size (Mid-Sized, Large Enterprise), By Tier Type (Tier 4, Tier 3, Tier 2, Tier 1), and By End User (BFSI, IT and Telecom, Healthcare)-Forecast to 2035

China Modular Data Center Market Infographic

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Summary Table of Contents Segmentation Infographic

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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China Modular Data Center Market Summary

The China Modular Data Center market is poised for substantial growth, with a projected valuation increase from 1.36 USD Billion in 2024 to 8.82 USD Billion by 2035.

Key Market Trends & Highlights

China Modular Data Center Key Trends and Highlights

The market is expected to grow at a compound annual growth rate (CAGR) of 18.53% from 2025 to 2035.
By 2035, the market valuation is anticipated to reach 8.82 USD Billion, indicating robust expansion.
In 2024, the market is valued at 1.36 USD Billion, reflecting a strong foundation for future growth.
Growing adoption of modular data center technology due to increasing demand for efficient and scalable infrastructure is a major market driver.

China Modular Data Center Market

CAGR

18.53%

Market Size & Forecast

2024 Market Size	1.36 (USD Billion)
2035 Market Size	8.82 (USD Billion)
CAGR (2025-2035)	18.53%

Major Players

Schneider Electric, ZTE, Vertiv, Huawei, Dell Technologies, China Mobile, China Telecom, Microsoft, Inspur, Alibaba Cloud, IBM

China Modular Data Center Market Trends

The market for modular data centers in China is expanding significantly due to a number of important factors. Modular data centers are a desirable alternative for businesses in need of speedy solutions due to the growing requirement for quick deployment of data center equipment, particularly in metropolitan settings.

Furthermore, the need for effective data management systems is growing as a result of the government's push for digital transformation in a number of industries. Investments in creative and scalable data center solutions are encouraged by the nation's dedication to developing its technological capabilities.

Since sustainability is becoming a top priority for many organizations and government agencies, there are many of prospects to investigate in the field of green technologies. China's objectives to lower carbon emissions and encourage environmentally friendly IT industry practices are in line with the drive for energy-efficient data centers.

As smart technologies and Internet of Things (IoT) devices become more widely used, businesses are searching for methods to guarantee data sovereignty and reduce latency.

Modular data centers are intriguing to companies navigating the challenges of rapid technological innovation because they provide flexibility in increasing operations and enhancing performance. This adaptability fosters a flexible environment that can be tailored to industry-specific requirements, whether they are in smart city projects, healthcare, or finance.

Market Segment Insights

China Modular Data Center Market Segment Insights

Modular Data Center Market Component Insights

The Component segment within the China Modular Data Center Market is increasingly vital as it accommodates the growing demands for efficiency and scalability in data management. This segment primarily revolves around two critical aspects: Functional Modules and Services.

Functional Modules are the backbone of modular data centers, incorporating essential components such as power systems, cooling units, and IT racks, which work together to create a robust infrastructure capable of supporting dynamic business applications and workloads.

The emphasis on energy-efficient solutions within these modules aligns with China's stringent environmental regulations and targets for carbon neutrality, thereby driving innovation and continuous improvement in technology.

Meanwhile, Services related to the component segment, such as installation, maintenance, and management, play an equally pivotal role. With the rapid digitalization across various industries in China, there is an increasing requirement for comprehensive service solutions that enhance operational reliability and uptime within modular facilities.

Modular Data Center Market Data Center Size Insights

The Data Center Size segment within the China Modular Data Center Market showcases a diverse range of opportunities, primarily categorized into Mid-Sized and Large Enterprise solutions, both playing a crucial role in the evolving landscape of data management.

The Mid-Sized data centers are increasingly gaining traction due to the growing demand from small and medium-sized enterprises that require flexibility and scalability, allowing for efficient resource allocation tailored to specific business needs.

Meanwhile, the Large Enterprise sector dominates the market as large organizations continue to invest in robust and reliable infrastructure to support their expansive data processing and storage requirements.

This segment's significance lies in its capacity to handle massive workloads and provide enhanced uptime and security features, which are essential for industries such as finance, telecommunications, and technology.

Modular Data Center Market Tier Type Insights

The China Modular Data Center Market, categorized by Tier Type, presents a distinct classification that is essential for understanding infrastructure readiness and operational capabilities.

Among these tiers, Tier 4 is recognized for its high availability and fault tolerance, making it essential for mission-critical operations in enterprises that require uninterrupted service, reflecting the growing demand for reliable information technology solutions in major Chinese cities.

Tier 3 centers balance performance and cost efficiency, catering to businesses that need robust infrastructure without the full redundancy of Tier 4, thus appealing to the expanding mid-tier market.

Meanwhile, Tier 2 and Tier 1 facilities offer simplified designs that still fulfill the basic needs of small to medium enterprises, reflecting a trend toward modular constructions that minimize costs and enhance service delivery.

Modular Data Center Market End User Insights

The End User segment of the China Modular Data Center Market plays a crucial role in driving market dynamics, with various sectors adopting modular solutions to enhance their operations.

The Banking, Financial Services, and Insurance (BFSI) sector benefits from the agility and scalability offered by modular data centers, enabling them to meet high security and compliance standards while rapidly adapting to changing demands.

In the IT and Telecom industry, modular data centers support the increasing need for robust infrastructure to accommodate data-driven innovations and extensive network requirements.

This sector recognizes the importance of reliability and efficient management of resources, leading to a growing trend towards modular environments. Meanwhile, the Healthcare sector leverages modular data centers to secure sensitive patient information and enhance data accessibility for real-time decision making.

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Key Players and Competitive Insights

The China Modular Data Center Market is experiencing significant growth, driven by the increasing demand for efficient, flexible, and scalable IT infrastructure. This market is characterized by a competitive landscape where various players are vying for market share.

The modular data center concept is gaining traction in China due to its ability to offer rapid deployment and improved energy efficiency, catering to the evolving needs of enterprises across different sectors. In this dynamic environment, companies are focusing on innovation, technological advancements, and strategic partnerships to enhance their offerings and meet customer demands.

Understanding the competitive insights within this market reveals trends that indicate a robust expansion trajectory, influenced by digital transformation initiatives, cloud adoption, and the sustainability imperative in modern data management.

Schneider Electric's role in the China Modular Data Center Market is equally compelling, showcasing the company's strengths in energy management and automation. Schneider Electric offers a comprehensive range of solutions targeted at data center infrastructure, including power distribution, cooling systems, and integrated management software.

Its modularity capabilities allow for flexible configurations tailored to different operational requirements, making it a preferred choice for enterprises looking to enhance their data center efficiency. The company has bolstered its market presence through strategic mergers and acquisitions, enabling it to expand its technology offerings and strengthen its operations within China.

Schneider Electric's commitment to sustainability is evident in its product design, emphasizing energy efficiency and reduced carbon footprints. With an ability to address both current and future demands in the modular data center domain, Schneider Electric is well-positioned to capitalize on the evolving trends in China’s data center industry.

Key Companies in the China Modular Data Center Market market include

Industry Developments

With its FusionDC 5.0 hyper-converged modular solution, Huawei Technologies established itself as the world leader in prefabricated modular data center shipments in December 2024. The company achieved a ten-year global #1 ranking and made it possible to deploy 1,000-rack facilities in six months while cutting construction waste by more than 80%.

As part of its strategic expansion of AI-ready processing hubs in areas like Inner Mongolia and Harbin, China Mobile awarded contracts for intelligent data center infrastructure by July 2024, totaling more than CNY 19.1 billion (~USD 2.6 billion), backed by local OEMs and vendors like Huawei and Inspur.

With the goal of centralized orchestration and standardized interconnectivity by 2028, China expedited the launch of a national cloud-network initiative in mid-2025, working with China Mobile, China Telecom, and China Unicom to centralize excess compute capacity from more than 7,000 licensed modular and traditional data centers.

In June 2024, Vertiv launched their SmartMod Max CW prefabricated modular system in China. It can manage up to 200 kW of IT load per unit and is designed for chilled-water cooling in AI-heavy applications. In the meantime, Microsoft, IBM, and Alibaba Cloud kept growing their hyperscale and modular colocation infrastructure throughout important Chinese hubs.

Alibaba Cloud's data centers supported AI advances through its QWEN LLM, further solidifying its position as the leading cloud provider in Asia-Pacific.

Market Segmentation

Modular Data Center Market End User Outlook

BFSI
IT and Telecom
Healthcare

Modular Data Center Market Component Outlook

Mid-Sized
Large Enterprise

Modular Data Center Market Tier Type Outlook

BFSI
IT and Telecom
Healthcare

Modular Data Center Market Data Center Size Outlook

Tier 4
Tier 3
Tier 2
Tier 1

Report Scope

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	1.15(USD Billion)
MARKET SIZE 2024	1.36(USD Billion)
MARKET SIZE 2035	8.82(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	18.525% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Digital Realty, Schneider Electric, Fujitsu, ZTE, Vertiv, Huawei, Dell Technologies, China Mobile, Atos, China Telecom, Lenovo, Microsoft, Inspur, Alibaba Cloud, IBM
SEGMENTS COVERED	Component, Data Center Size, Tier Type, End User
KEY MARKET OPPORTUNITIES	Increased demand for edge computing, Government support for green initiatives, Rapid cloud adoption by enterprises, Rising need for disaster recovery, Expanding IoT infrastructure requirements
KEY MARKET DYNAMICS	growing demand for data processing, increasing cloud adoption, energy efficiency needs, rapid deployment capabilities, cost-effective infrastructure solutions
COUNTRIES COVERED	China

FAQs

What is the expected market size of the China Modular Data Center Market in 2024?

The China Modular Data Center Market is expected to be valued at 1.36 billion USD in 2024.

What is the projected market value for the China Modular Data Center Market by 2035?

By 2035, the China Modular Data Center Market is projected to reach a value of 8.82 billion USD.

What is the expected compound annual growth rate (CAGR) for the China Modular Data Center Market from 2025 to 2035?

The market is expected to grow at a CAGR of 18.525% during the forecast period from 2025 to 2035.

Which companies are considered key players in the China Modular Data Center Market?

Major players in the market include Digital Realty, Schneider Electric, Fujitsu, and Alibaba Cloud, among others.

What are the forecasted values for the Functional Module and Services segments in 2035?

The Functional Module segment is expected to be valued at 4.1 billion USD, while the Services segment is projected to reach 4.72 billion USD by 2035.

What was the Functional Module market size in 2024?

The Functional Module market was valued at 0.6 billion USD in 2024.

What is the expected market size for Services in the China Modular Data Center Market by 2024?

The Services segment is expected to be valued at 0.76 billion USD in 2024.

What key trends are currently shaping the China Modular Data Center Market?

Key trends include increasing demand for scalable and efficient data centers driven by digital transformation and cloud adoption.

How are emerging technologies impacting the growth of the Modular Data Center Market in China?

Emerging technologies are promoting innovative modular designs and enhancing energy efficiency, driving market growth.

What impact does regional development in China have on the Modular Data Center Market?

Regional development, particularly in tech hubs, is significantly boosting the demand for modular data centers across China.

China Modular Data Center Market Research Report-Forecast to 2035 Infographic

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