×
Request Free Sample ×

Kindly complete the form below to receive a free sample of this Report

* Please use a valid business email

Leading companies partner with us for data-driven Insights

clients tt-cursor
Hero Background

Italy Modular Data Center Market

ID: MRFR/ICT/59400-HCR
200 Pages
Aarti Dhapte
October 2025

Italy 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

Share:
Download PDF ×

We do not share your information with anyone. However, we may send you emails based on your report interest from time to time. You may contact us at any time to opt-out.

Italy Modular Data Center Market Infographic
Purchase Options

Italy Modular Data Center Market Summary

As per MRFR analysis, the Modular Data Center Market Size was estimated at 259.4 USD Million in 2024. The modular data-center market is projected to grow from 307.52 USD Million in 2025 to 1686.44 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 18.55% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The Italy modular data-center market is experiencing robust growth driven by technological advancements and increasing demand for energy-efficient solutions.

  • The largest segment in the Italy modular data-center market is the cloud services segment, which continues to expand rapidly.
  • The fastest-growing segment is edge computing, reflecting the rising demand for localized data processing.
  • Energy efficiency remains a focal point, as companies seek to reduce operational costs and meet sustainability goals.
  • Key market drivers include the increased adoption of cloud services and rising energy costs, which are pushing organizations towards modular solutions.

Market Size & Forecast

2024 Market Size 259.4 (USD Million)
2035 Market Size 1686.44 (USD Million)
CAGR (2025 - 2035) 18.55%

Major Players

Schneider Electric (FR), Dell Technologies (US), Hewlett Packard Enterprise (US), IBM (US), Microsoft (US), Vertiv (US), Huawei (CN), Rittal (DE), EdgeConneX (US)

Italy Modular Data Center Market Trends

The The modular data center market is experiencing notable growth, driven by the increasing demand for efficient and flexible computing solutions. This trend is largely influenced by the rising need for data processing capabilities across various sectors, including finance, healthcare, and telecommunications. As organizations seek to optimize their operations, modular data centers offer a scalable and cost-effective alternative to traditional facilities. The ability to deploy these units quickly and adapt to changing requirements positions them as a favorable choice for businesses aiming to enhance their IT infrastructure. Moreover, sustainability concerns are prompting a shift towards energy-efficient designs within the modular data-center market. Companies are increasingly prioritizing eco-friendly solutions, which not only reduce operational costs but also align with regulatory standards and corporate social responsibility goals. The integration of renewable energy sources and advanced cooling technologies further supports this movement. As the market evolves, it appears that modular data centers will play a crucial role in meeting the demands of a digital economy while addressing environmental challenges.

Rising Demand for Edge Computing

The The modular data center market is witnessing a surge in demand for edge computing solutions. As businesses increasingly rely on real-time data processing, the need for localized data centers becomes apparent. Modular units provide the necessary infrastructure to support edge computing, enabling organizations to reduce latency and enhance service delivery.

Focus on Energy Efficiency

Energy efficiency is becoming a central theme within the modular data-center market. Companies are actively seeking solutions that minimize energy consumption while maximizing performance. This trend is driven by both economic considerations and regulatory pressures, leading to innovations in cooling technologies and power management.

Customization and Scalability

Customization and scalability are key drivers in the modular data-center market. Organizations are looking for solutions that can be tailored to their specific needs, allowing for easy expansion as demand grows. Modular designs facilitate this flexibility, enabling businesses to adapt their infrastructure without significant capital investment.

Italy Modular Data Center Market Drivers

Increased Adoption of Cloud Services

The growing reliance on cloud services in Italy is driving the modular data-center market. As businesses increasingly migrate their operations to the cloud, the demand for flexible and scalable data solutions rises. Modular data centers offer the agility needed to support cloud infrastructure, allowing companies to expand their capabilities without significant upfront investments. In 2025, the cloud computing market in Italy is projected to reach approximately €10 billion, indicating a robust growth trajectory. This trend suggests that modular data centers will play a crucial role in accommodating the expanding data storage and processing needs of cloud service providers, thereby enhancing the overall efficiency of IT operations.

Demand for Disaster Recovery Solutions

The increasing frequency of natural disasters and cyber threats in Italy is driving the need for robust disaster recovery solutions, thereby influencing the modular data-center market. Modular data centers provide businesses with the flexibility to establish redundant systems and backup facilities, ensuring data integrity and availability during crises. This capability is particularly crucial for sectors such as finance and healthcare, where data loss can have severe consequences. As organizations prioritize business continuity planning, the demand for modular data centers that offer reliable disaster recovery options is expected to grow. Analysts predict that this segment of the market could expand by 18% in the near future.

Regulatory Compliance and Data Sovereignty

Italy's stringent data protection regulations, including the General Data Protection Regulation (GDPR), necessitate that businesses ensure compliance with data sovereignty laws. This regulatory landscape is propelling the modular data-center market, as these facilities can be designed to meet specific compliance requirements. Modular data centers can be strategically located to ensure data remains within national borders, thus addressing concerns related to data privacy and security. As organizations strive to adhere to these regulations, the demand for modular solutions that facilitate compliance is likely to increase, potentially leading to a market growth of around 15% in the coming years.

Rising Energy Costs and Sustainability Initiatives

The escalating energy costs in Italy are prompting businesses to seek more energy-efficient solutions, thereby influencing the modular data-center market. Modular data centers are designed with energy efficiency in mind, often utilizing advanced cooling technologies and renewable energy sources. This focus on sustainability aligns with Italy's commitment to reducing carbon emissions and promoting green technologies. As organizations aim to lower operational costs and enhance their sustainability profiles, the adoption of modular data centers is expected to rise. It is estimated that energy-efficient data centers can reduce energy consumption by up to 30%, making them an attractive option for businesses looking to optimize their energy usage.

Technological Advancements in Data Center Infrastructure

Innovations in data center technology are significantly impacting the modular data-center market. The introduction of advanced cooling systems, virtualization technologies, and automation tools enhances the performance and reliability of modular data centers. These advancements enable businesses to optimize their IT infrastructure, reduce downtime, and improve overall operational efficiency. In Italy, the increasing integration of artificial intelligence and machine learning in data center management is likely to drive further adoption of modular solutions. As companies seek to leverage these technologies, the modular data-center market may experience a growth rate of approximately 20% over the next few years.

Market Segment Insights

By Components: Functional Modules (Largest) vs. Services (Fastest-Growing)

In the Italy modular data-center market, the Functional Modules segment holds the largest share, reflecting the increasing adoption of prefabricated solutions that enhance operational efficiency. Services, while smaller in market share, are rapidly growing as organizations seek managed services and support for their data center operations, indicating a shift towards outsourcing critical functions to specialized providers. The growth trends in this segment are driven by advances in technology and a growing demand for scalable and flexible infrastructure. The rise of cloud computing and the need for effective data management solutions are pushing the demand for both functional modules and services. Additionally, the increasing focus on energy efficiency and sustainability is influencing the selection of components, making services that optimize performance particularly appealing to operators in this sector.

Functional Modules (Dominant) vs. Services (Emerging)

Functional Modules are the backbone of efficiency and scalability in the modular data-center market. They encompass essential elements like power supply units, cooling systems, and structural components that ensure optimal performance. As dominant players continue to innovate in design and functionality, these modules provide reliable and customizable solutions for various applications. In contrast, Services represent an emerging facet of this market, focusing on maintenance, management, and optimization. With companies increasingly outsourcing these needs, the demand for robust service offerings is rising. This segment is transforming the landscape by providing essential support to enhance operational reliability and efficiency.

By Data Center Size: Large Enterprises (Largest) vs. Mid-Sized (Fastest-Growing)

In the Italy modular data-center market, Large Enterprises hold the largest market share, reflecting the demand for robust and scalable solutions tailored for large-scale operations. Their significant investments in infrastructure cater to a myriad of applications, further solidifying their dominance. Conversely, Mid-Sized data centers are emerging rapidly, capturing attention due to their agility and ability to meet the specific needs of medium-scale enterprises seeking to optimize costs and enhance efficiency. Growth trends in the Italy modular data-center market reveal a strong shift towards Mid-Sized data solutions as companies increasingly adopt hybrid models. The rising demand for cloud services and IT resource optimization drives this trend, as businesses look for flexible and cost-effective solutions. Simultaneously, Large Enterprises continue to expand their capabilities, investing in advanced technologies to enhance performance and ensure high availability, defining the competitive landscape well into the future.

Large Enterprises: Dominant vs. Mid-Sized: Emerging

Large Enterprises are characterized by their substantial infrastructure investments, allowing for extensive capacity and extensive service offerings. They cater to multinational corporations and large institutions that require high-performance computing, secure data handling, and round-the-clock availability. With their established market presence, these enterprises often lead the way in adopting the latest technologies to optimize their operations. On the other hand, Mid-Sized data centers are gaining traction due to their ability to provide tailored solutions that meet specific customer needs while remaining cost-effective. Their flexibility enables them to adapt quickly to market changes, positioning them as a vital player in the evolving landscape. This shift towards support for a broader range of business sizes illustrates a critical dynamic within the market.

By Tier Type: Tier 4 (Largest) vs. Tier 3 (Fastest-Growing)

In the Italy modular data-center market, Tier 4 data centers constitute the largest segment, capturing a significant portion of market share due to their advanced features and reliability. Meanwhile, Tier 3 facilities are emerging rapidly, appealing to businesses that require a balance between performance and cost-efficiency. The distribution among Tier 1 and Tier 2 data centers remains less substantial, as the demand increasingly shifts towards higher-tier options that provide enhanced security and uptime. The growth of Tier 3 data centers is driven by the increasing adoption of cloud computing and the need for scalable solutions among enterprises. As companies migrate to digital infrastructures, the performance and redundancy offered by Tier 3 facilities become increasingly attractive. At the same time, Tier 4 data centers continue to thrive due to their capacity to support mission-critical applications, ensuring business continuity and operational resilience in an ever-evolving technological landscape.

Tier 4 (Dominant) vs. Tier 3 (Emerging)

Tier 4 data centers are characterized by their unparalleled reliability and comprehensive redundancy, making them the dominant choice for enterprises with critical operations. These facilities are built to maintain uptime and mitigate risks associated with potential failures, thereby supporting high-availability systems. Conversely, Tier 3 data centers are recognized as emerging options that deliver significant operational capabilities while being more cost-effective. They cater to businesses looking to balance performance with budget constraints, often featuring dual-powered equipment and multiple network paths, which allows flexibility and efficient scaling as businesses grow. This differentiation in performance capabilities shapes their usage across various market segments, with Tier 4 leading in high-stakes environments.

By End Users: BFSI (Largest) vs. Healthcare (Fastest-Growing)

The market share distribution in the Italy modular data-center market shows a significant dominance of the BFSI sector, which plays a crucial role in driving technological advancements and operational efficiency. Following this, the IT and Telecom segment also holds a notable share, contributing to the increasing demand for modular data centers. Healthcare is emerging as a promising segment, showing potential for growth as the sector seeks to modernize and enhance its data management capabilities. In terms of growth trends, the BFSI segment is influenced by ongoing digital transformation initiatives and regulatory requirements, driving the need for enhanced data security and storage solutions. Meanwhile, the Healthcare sector is experiencing rapid growth, primarily due to the increasing adoption of telemedicine and electronic health records. These trends highlight a shift towards modular solutions that can offer flexibility, scalability, and efficiency in operations across both dominant and emerging sectors.

BFSI (Dominant) vs. Healthcare (Emerging)

The BFSI segment is characterized by its substantial investment in technology to improve customer service and regulatory compliance, making it a dominant player in the Italy modular data-center market. This sector prioritizes data security and high availability, driving a demand for innovative and resilient modular solutions. On the other hand, the Healthcare segment is rapidly evolving, fueled by the need for integrated IT systems that support patient data management and care delivery. As various healthcare organizations transition towards digital frameworks, modular data centers are becoming essential for managing increased data loads and enhancing operational agility, marking its position as an emerging segment within the market.

Get more detailed insights about Italy Modular Data Center Market

Key Players and Competitive Insights

The modular data-center market in Italy is characterized by a dynamic competitive landscape, driven by increasing demand for efficient, scalable, and sustainable data solutions. Key players such as Schneider Electric (FR), Dell Technologies (US), and IBM (US) are actively shaping the market through strategic initiatives focused on innovation and regional expansion. Schneider Electric (FR) emphasizes sustainability and energy efficiency in its offerings, while Dell Technologies (US) leverages its extensive portfolio to provide integrated solutions. IBM (US) is concentrating on hybrid cloud solutions, which are becoming increasingly relevant in the current digital transformation landscape. Collectively, these strategies foster a competitive environment that prioritizes technological advancement and customer-centric solutions.

In terms of business tactics, companies are increasingly localizing manufacturing and optimizing supply chains to enhance operational efficiency. The market structure appears moderately fragmented, with several key players exerting influence over various segments. This fragmentation allows for a diverse range of offerings, catering to different customer needs while fostering competition among established and emerging players.

In October 2025, Schneider Electric (FR) announced a partnership with a leading Italian telecommunications provider to develop a new modular data-center solution aimed at enhancing connectivity and energy efficiency. This strategic move underscores Schneider's commitment to sustainability and positions it favorably within the growing demand for green technology solutions in Italy. The collaboration is expected to leverage both companies' strengths, potentially leading to innovative offerings that meet the evolving needs of the market.

In September 2025, Dell Technologies (US) launched a new line of modular data centers designed specifically for edge computing applications. This initiative reflects Dell's focus on addressing the increasing demand for localized data processing capabilities. By enhancing its product portfolio, Dell aims to capture a larger share of the market, particularly as businesses seek to optimize their operations through edge computing solutions.

In August 2025, IBM (US) expanded its modular data-center offerings by integrating advanced AI capabilities into its systems. This strategic enhancement is indicative of IBM's commitment to digital transformation and positions the company to better serve clients looking to leverage AI for improved operational efficiency. The integration of AI into modular solutions may provide IBM with a competitive edge, as organizations increasingly prioritize intelligent data management solutions.

As of November 2025, current trends in the modular data-center market are heavily influenced by digitalization, sustainability, and the integration of AI technologies. Strategic alliances among key players are shaping the competitive landscape, fostering innovation and collaboration. The shift from price-based competition to a focus on technological differentiation and supply chain reliability is evident. Moving forward, companies that prioritize innovation and sustainability are likely to emerge as leaders in this evolving market.

Key Companies in the Italy Modular Data Center Market market include

Industry Developments

In regions with edge and hyperscale demand, Vertiv's MegaModCoolChip high-density prefabricated modular data center solution, which was introduced internationally in July 2024, including in Italy, allows AI workloads to be installed up to 50% quicker using direct-to-chip liquid cooling architecture.The first Private 5G-enabled modular edge data center was deployed at Marienpark near Berlin blueprint in May 2024 by Schneider Electric and NTT Data Italy using their EcoStruxure modular technology. This partnership is influencing Italian infrastructure goals for integrated IoT/AI edge systems.

Modular thermal systems, such as the Liebert PKDX, for high-density prefabricated application (scalable from 0.5 MW to multi-MW) were deployed by Vertiv earlier in 2023 around Europe, including Italian deployments in Milan and Rome.Even though the site opened earlier, Equinix's ML5 IBX data center in Milan (a flagship Italian site) is still a modular-reference model for digital edge expansion in 2025 strategies because it is built on the Flexible Data Center modular principles, which are intended for interconnection ecosystems and multicloud scalability.The French firm Legrand, which has a substantial presence in Italy, continues to be a major supplier of data center building blocks, PDU systems, and electrical infrastructure that supports the country's linked and sustainable modular growth.

Future Outlook

Italy Modular Data Center Market Future Outlook

The Modular Data Center Market in Italy is projected to grow at 18.55% CAGR from 2024 to 2035, driven by increasing demand for scalable solutions and energy efficiency.

New opportunities lie in:

  • Development of energy-efficient cooling systems for modular units.
  • Integration of AI-driven management software for operational efficiency.
  • Expansion into renewable energy sources for sustainable power solutions.

By 2035, the The modular data center market is expected to be robust, driven by innovation and sustainability.

Market Segmentation

Italy Modular Data Center Market End Users Outlook

  • BFSI
  • IT and Telecom
  • Healthcare

Italy Modular Data Center Market Tier Type Outlook

  • Tier 4
  • Tier 3
  • Tier 2
  • Tier 1

Italy Modular Data Center Market Components Outlook

  • Functional modules
  • Services

Italy Modular Data Center Market Data Center Size Outlook

  • Mid-Sized
  • Large Enterprises

Report Scope

MARKET SIZE 2024 259.4(USD Million)
MARKET SIZE 2025 307.52(USD Million)
MARKET SIZE 2035 1686.44(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 18.55% (2024 - 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 Million
Key Companies Profiled Schneider Electric (FR), Dell Technologies (US), Hewlett Packard Enterprise (US), IBM (US), Microsoft (US), Vertiv (US), Huawei (CN), Rittal (DE), EdgeConneX (US)
Segments Covered Components, Data Center Size, Tier Type, End Users
Key Market Opportunities Growing demand for energy-efficient solutions drives innovation in the modular data-center market.
Key Market Dynamics Rising demand for energy-efficient modular data centers driven by regulatory sustainability initiatives and technological advancements.
Countries Covered Italy

Leave a Comment

FAQs

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

The Italy Modular Data Center Market is expected to be valued at 324.25 million USD in 2024.

What is the projected market valuation for the Italy Modular Data Center Market by 2035?

By 2035, the market is projected to reach a value of 810.54 million USD.

What is the expected CAGR for the Italy Modular Data Center Market from 2025 to 2035?

The expected CAGR for the market from 2025 to 2035 is 8.686%.

Which companies are considered major players in the Italy Modular Data Center Market?

Some major players include Legrand, STULZ, Schneider Electric, and Fujitsu.

What is the market value for the Functional Module segment in 2024?

The Functional Module segment is valued at 130.25 million USD in 2024.

What is the anticipated market value for Services in the Italy Modular Data Center Market by 2035?

The Services segment is expected to reach a value of 486.4 million USD by 2035.

What are the expected growth opportunities in the Italy Modular Data Center Market?

The market is expected to grow due to increasing demand for efficient data management and flexible IT infrastructure.

What challenges does the Italy Modular Data Center Market currently face?

Challenges include the need for high initial investments and the complexity in integrating modular systems.

What is the impact of technological advancements on the Italy Modular Data Center Market?

Technological advancements are driving innovation and improved efficiency in data center operations.

How is the regulatory environment affecting the growth of the Italy Modular Data Center Market?

The regulatory environment is increasingly focusing on sustainability and energy efficiency, influencing market trends.

Download Free Sample

Kindly complete the form below to receive a free sample of this Report

Compare Licence

×
Features License Type
Single User Multiuser License Enterprise User
Price $4,950 $5,950 $7,250
Maximum User Access Limit 1 User Upto 10 Users Unrestricted Access Throughout the Organization
Free Customization
Direct Access to Analyst
Deliverable Format
Platform Access
Discount on Next Purchase 10% 15% 15%
Printable Versions