The Australian government passed a data retention law in the year 2017, which says that all the telecommunication companies should manage and save the user data for minimum of 2 years. This is compelling for companies to adopt modular data center solutions. The above knowledge was shared by destination Business Insights in a legwork, titled “Modular Data Center Market Size, Share and Global Trend by Type (Fully concocted, Partial Fabricated, Micro Data Centres), By operative (Power, Cooling, I.T.), By deployment plan (Large Size Data Center, Mid-Size/Small Size Data Centre), By End-Use (IT and Telecom, BFSI, Healthcare, manufacture, Energy andPower, Government and Defence), and earth Forecast till 2026.” Modular data stronghold are flexible, gaugeable, and easily deployables. Moreover, modular data center systems have the ability to effectively deploy anywhere in an organization. The systems help to reduce the complexities and offer optimum effectiveness by speeding up the operation process.

Key Market Driver
Growth in 5G technology, penetration of big data and LoT market
Increasing application areas of digital services sites and social media platforms

Key Market Restraint
Need to obtain authorization from concerned government authority for using modular data center systems and rising cyber-crimes involving risk in handling confidential company data risks
The modular data center market growth is driven by the rising adoption of big data solutions across industries such as manufacturing, information technology, and others. IT sector focusses on energy-efficient and portable infrastructure facilities, which drives the market. In addition to this, several companies are implementing containerized and prefabricated facilities to streamline their IT operations and enhance performance. With the proliferation of digitization, several businesses across the world are planning to adopt data centers. Influenced by these factors, the global modular data center market size is likely to increase in the forthcoming years.

Existing Competition Among Leading Players Drives the Market in North America

North America is projected to cover the majority of the share in the global modular data center market during the forecast period. This is ascribable to the cutthroat competition existing in the market. Compelled by this, key players are adopting innovative and cost-effective solutions. Also, companies are planning to invest in advanced modular data centers to gain cost benefits regarding their deployment. Among countries in North America, the U.S. is increasingly using modular databases to overcome challenges such as moderation and disaster reclamation. The rising penetration of IoT and big data in North America is likely to transform the data center industry. This, in turn, will give rise to next-generation modular data centers.

The market in Asia Pacific is expected to witness considerable growth owing to the rising adoption of IoT solutions and big data analytics. This, coupled with booming 5G infrastructure in the region, will increase the modular data center construction.

Intel Plans to Develop a New Data Center Backed by 5G to Optimize Performance

5G technology and cloud-based services are rapidly penetrating in the IT industry. Driven by this, several vendors are planning to invest in modular data centers. Intel Corporation is planning to develop new data centers supported by 5G and cloud-platform technology. Furthermore, the company is carrying out interoperability experiments with other leading companies such as Nokia, Ericsson, and Huawei. Such developments are expected to enable growth in the market and eventually expand the modular data center market share. The demand for modular data centers is increasing across end-use industries such as IT and telecom, healthcare, BFSI, manufacturing, government and defence, and energy and power. Spurred by this, the modular data center market revenue is likely to reach new heights in the forthcoming years.


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