As per MRFR analysis, the China Modular Data Center Market Size was estimated at 1.15 (USD Billion) in 2023.The China Modular Data Center Market is expected to grow from 1.36(USD Billion) in 2024 to 8.82 (USD Billion) by 2035. The China Modular Data Center Market CAGR (growth rate) is expected to be around 18.525% during the forecast period (2025 - 2035).
Key China Modular Data Center Market Trends Highlighted
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.
Modular data centers can gain a competitive edge by integrating renewable energy sources, particularly in light of China's ambitious energy transition ambitions. The growing demand for localized data processing is supported by recent trends that show a move toward edge and hybrid computing.
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.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
China Modular Data Center Market Drivers
Increasing Demand for Cloud Computing Services
The China Modular Data Center Market is experiencing substantial growth, primarily driven by the escalating demand for cloud computing services. Organizations across various sectors in China, including finance, retail, and healthcare, are rapidly transitioning to cloud-based solutions to enhance operational efficiency and scalability.
The Ministry of Industry and Information Technology of China reported that the cloud computing industry in the country is expected to surpass a market value of 1 trillion yuan by 2025, representing a compound annual growth rate of approximately 30%.
This surge in cloud adoption necessitates the establishment of modular data centers to support the required infrastructure. Companies like Alibaba and Tencent are at the forefront, constantly innovating and expanding their cloud services to meet growing consumer demands, thereby driving the modular data center market further.
Government Initiatives and Support for Green Technologies
The Chinese government's commitment to promoting green technologies acts as a significant catalyst for the China Modular Data Center Market. As part of its '13th Five-Year Plan', the government has set ambitious targets for reducing carbon emissions and increasing energy efficiency, especially in digital infrastructure.
Official statistics indicate that energy consumption in data centers contributes to around 2% of China's total carbon emissions, hence the push for more sustainable operational models. The government has launched initiatives to provide subsidies to data center projects that utilize energy-efficient technologies.
Tech giants such as Baidu are leading example projects demonstrating the integration of renewable energy sources and energy-efficient practices, thereby aligning with national goals while stimulating growth in the modular data center market.
Rise in Data Generation and Consumption
The exponential rise in data generation and consumption in China is a pivotal driver for the China Modular Data Center Market. The explosion of smart devices, IoT, and big data analytics has led to a remarkable increase in data volume, with projections indicating that China's data consumption could reach 50 zettabytes by 2025.
According to the China Academy of Information and Communications Technology, approximately 1.8 billion smart devices were connected to the internet in 2023, which significantly increases the demand for efficient data management solutions.
This scenario compels organizations to invest in modular data center infrastructure that can dynamically scale to accommodate growing data needs. Leading technology firms, including Huawei, are significantly investing in modular solutions that offer flexible and high-density storage seamlessly aligned with the burgeoning data landscape.
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.
The growing complexity of data demands and the necessity for tailored solutions further underscore the importance of these services. As more enterprises adopt modular data center frameworks for their agility and scalability, the Component segment stands out as a key enabler for organizational advancement in the digital age.
The China Modular Data Center Market is witnessing a robust transformation, fueled by technological advancements and an increasing focus on integration and automation, which is fostering significant opportunities for stakeholders within this segment.
Overall, the Component segment serves as a fundamental element in the evolution of modular data centers, supporting the country's trajectory towards digital innovation and infrastructure modernization.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
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.
The increasing digitization across sectors in China drives the need for advanced data centers, fueling growth and innovation within this market. Along with supportive government initiatives promoting digital infrastructure, this trend underscores the vital role that different data center sizes play in the broader China Modular Data Center Market strategy.
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.
This segmentation plays a crucial role in aligning the complexity and capabilities of various data center solutions to the specific requirements of organizations across China, providing a strategic framework that drives innovation and investment in the country's data ecosystem.
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.
Each of these sectors showcases the significance of modular data centers in providing flexible, efficient, and secure solutions that align with the unique challenges they face, thus contributing to the overall growth of the China Modular Data Center Market.
China Modular Data Center Market 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 Include
China Modular Data Center Market 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.
China Modular Data Center Market Segmentation Insights
| 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 |
Frequently Asked Questions (FAQ) :
The China Modular Data Center Market is expected to be valued at 1.36 billion USD in 2024.
By 2035, the China Modular Data Center Market is projected to reach a value of 8.82 billion USD.
The market is expected to grow at a CAGR of 18.525% during the forecast period from 2025 to 2035.
Major players in the market include Digital Realty, Schneider Electric, Fujitsu, and Alibaba Cloud, among others.
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.
The Functional Module market was valued at 0.6 billion USD in 2024.
The Services segment is expected to be valued at 0.76 billion USD in 2024.
Key trends include increasing demand for scalable and efficient data centers driven by digital transformation and cloud adoption.
Emerging technologies are promoting innovative modular designs and enhancing energy efficiency, driving market growth.
Regional development, particularly in tech hubs, is significantly boosting the demand for modular data centers across China.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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