Prefabricated Data Center Market to Reach USD 52.45 Bn by 2035

AI infrastructure expansion and demand for faster power delivery are accelerating adoption of factory-integrated data center modules.

NEW YORK, October 25, 2026 — The global Prefabricated Data Center Market was valued at USD 17.80 billion in 2025 and is estimated to reach USD 21.64 billion in 2026, according to Next Move Strategy Consulting (NMSC). The market is projected to expand to USD 52.45 billion by 2035, growing at a compound annual growth rate (CAGR) of 10.34% from 2026 to 2035. This expansion reflects rising artificial intelligence (AI) computing requirements, increasing hyperscale infrastructure investment, and demand for faster, factory-integrated power and cooling systems. Cloud service providers, colocation operators, and enterprise infrastructure owners are among the principal buyers driving market development.

North America led the market in 2025, accounting for approximately 38% of global revenue, or USD 6.73 billion. Middle East & Africa is projected to register the fastest regional growth, with revenue increasing from USD 1.08 billion in 2025 to USD 4.13 billion by 2035 at a CAGR of 13.22% from 2026 to 2035, according to NMSC estimates.

Key Findings

• Leading product category: IT Modules generated USD 6.58 billion in 2025, representing approximately 37% of global market revenue.

• Fastest-growing product category: Cooling Modules are projected to grow at a CAGR of 11.94% from 2026 to 2035, supported by rising thermal-management requirements.

• Leading sales channel: OEM Sales accounted for USD 14.60 billion in 2025 and are forecast to reach USD 39.86 billion by 2035.

• Country performance: The United States led with USD 5.87 billion in 2025 and is projected to reach USD 18.30 billion by 2035; South Africa is the fastest-growing country, at a projected 16.74% CAGR.

• Absolute dollar opportunity: The market offers approximately USD 30.81 billion in additional revenue opportunity between 2026 and 2035, based on the forecast increase from USD 21.64 billion to USD 52.45 billion.

What Is Driving Growth in the Prefabricated Data Center Market?

According to NMSC's research, increasing AI and high-performance computing (HPC) requirements represent the primary structural growth driver. AI workloads require greater computing capacity, higher rack power density, and increasingly sophisticated electrical and thermal infrastructure. The International Energy Agency's 2026 update estimates that data center electricity consumption will increase from approximately 485 terawatt-hours (TWh) in 2025 to 950 TWh in 2030, highlighting the scale of the infrastructure challenge. 

Factory-integrated modules can help operators standardize equipment, conduct testing before shipment, and coordinate infrastructure installation with site preparation.

A second growth catalyst is the need to accelerate the delivery of operational data center capacity. Prefabricated power, cooling, and IT modules can be manufactured in parallel with site construction, reducing the amount of integration work required at the project location. NMSC identifies this approach as particularly relevant to hyperscale campuses, colocation facilities, and neocloud operators, where delivery schedules and repeatable system designs are increasingly important. The introduction of standardized megawatt-scale power modules also reflects growing demand for infrastructure compatible with high-density AI computing.

The market nevertheless faces constraints from grid interconnection delays and shortages of critical electrical equipment, including transformers, switchgear, and uninterruptible power supply (UPS) components. Prefabricated equipment can shorten construction and integration schedules, but it cannot independently overcome insufficient utility capacity or delayed grid connections. NMSC also identifies customization requirements as a challenge because nonstandard designs can reduce factory repeatability, increase unit costs, and complicate installation across geographically diverse projects.

An important opportunity lies in factory-integrated liquid cooling and hybrid power-and-cooling systems. NMSC projects Direct Liquid cooling technology to grow at a CAGR of 19.98% from 2026 to 2035, as AI and GPU-intensive workloads place greater demands on thermal infrastructure. Regulatory developments may provide an additional incentive: on September 21, 2026, the European Commission proposed a common rating scheme for data centers and launched consultation work on minimum performance standards. These initiatives could increase attention to energy performance and more efficient infrastructure designs. 

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Key Players Shaping the Prefabricated Data Center Market

The NMSC report profiles 20 companies operating across prefabricated power, cooling, IT, and integrated modular infrastructure. These include Schneider Electric SE, Vertiv Holdings Co., Huawei Technologies Co., Ltd., RITTAL GmbH & Co. KG, Eaton Corporation plc, and Dell Technologies, alongside other established suppliers and specialist manufacturers.

Regional Snapshot

Prefabricated Data Center Market by Region, 2025–2035 (USD Billion)

Note: The independently rounded 2035 regional figures sum to USD 52.46 billion, USD 0.01 billion above the reported global forecast of USD 52.45 billion; source figures are retained without adjustment.

North America's established hyperscale infrastructure supports its market leadership, while Middle East & Africa presents a faster-growth opportunity as cloud, colocation, and sovereign AI projects increase demand for rapidly deployable capacity.

Analyst Commentary

“AI infrastructure is making speed to power a procurement priority. Prefabricated systems can shift integration into controlled factories, but suppliers will win only when module delivery is synchronized with utility access and tested liquid-cooling performance.” — the NMSC analyst team

NMSC's assessment indicates that manufacturers combining standardized power capacity, factory-tested cooling systems, and regional production capabilities may be better positioned to serve large data center projects. However, execution will depend on component availability and the timing of utility connections.

Latest Developments in the Prefabricated Data Center Market

On October 1, 2026, nVent Electric plc completed its acquisition of Maverick Power for USD 1.75 billion, with potential additional consideration of up to USD 550 million linked to performance in 2027 and 2028. The transaction adds engineered power-distribution and infrastructure capabilities to nVent's portfolio, strengthening its position in data center power systems. 

On September 16, 2026, Schneider Electric introduced new prefabricated power modules and power skids in 2 MW, 2.25 MW, and 2.5 MW configurations. Based on reference designs developed with NVIDIA, the systems incorporate power-management capabilities and liquid-cooling controls for AI infrastructure. The company stated that deployment timelines could be as short as six months, with the initial rollout in Europe. 

On May 19, 2026, Armada announced a USD 230 million Series B funding round and a framework agreement with Johnson Controls for its planned Galleon Forge One modular data center factory in Arizona. The facility is planned to cover up to 400,000 square feet and is expected to create more than 500 jobs. Separately, Eaton completed its acquisition of Boyd Thermal on March 12, 2026, adding liquid-cooling capabilities to its data center power portfolio. 

About Next Move Strategy Consulting

Next Move Strategy Consulting (NMSC) provides market intelligence and strategic research to support business decisions across technology, healthcare, manufacturing, energy, and other sectors. Its research combines market sizing, segmentation analysis, competitive intelligence, regional forecasting, and assessment of emerging technologies and industry developments. NMSC reports are designed to help business leaders, investors, product teams, and policy stakeholders evaluate market dynamics, identify growth opportunities, and understand competitive positioning. Research outputs include market forecasts, company profiles, and actionable analysis across global and regional markets.