North America Container Data Center Market Outlook to 2030

North America Container Data Center Market Overview

• The North America Container Data Center Market was valued at USD 4.3 billion, growth driven by the rising demand for scalable, portable, and cost-efficient data storage solutions. This growth reflects the increasing digitalization across industries and the need for more agile data center solutions.

• Major players dominating the market include Schneider Electric, IBM, HPE, Vertiv, and Cisco Systems. These companies are at the forefront of innovation, offering comprehensive data center solutions tailored to meet diverse customer needs. Schneider Electric and HPE, in particular, are leveraging their global reach and extensive product portfolios to capitalize on the growing market demand.
• In 2023, Vertiv announced a significant partnership with Google Cloud to enhance its containerized data center capabilities. This collaboration aims to optimize edge computing capabilities, offering faster data processing times for AI-driven applications. As per the agreement, Vertiv will supply its pre-integrated, modular data centers to Googles edge locations, boosting its market share.
• Ashburn, Virginia dominated the market, due to its attributed to its established "Data Center Alley," which hosts major cloud providers like Amazon Web Services (AWS) and Microsoft Azure. The region's robust infrastructure, favorable tax policies, and proximity to key financial and government institutions have solidified its leadership position in the market.

North America Container Data Center Market Segmentation

The North America Container Data Center Market is segmented into different factors like by product type, by end user and region.

By Product Type: The market is segmented by product type into all-in-one container data centers and customized container data centers. All-in-One Container Data Centers dominated the product type segmentation due to its attributed to its plug-and-play nature, which allows companies to deploy data centers in a short time frame without requiring specialized installations. All-in-One solutions are favored for their cost efficiency and operational convenience, particularly in industries that need to scale infrastructure rapidly.

By End-User: The market is segmented by end user into IT & telecommunications, healthcare, and banking, financial services, and insurance (BFSI). The IT & Telecommunications sector held the largest market share, due to the rapid expansion of 5G networks and cloud-based services across North America is the key driver for this segments dominance. IT companies are increasingly adopting containerized solutions to manage distributed computing demands and to expand their edge computing capabilities.

By Region: The market is segmented by region into the United States and Canada. The United States was dominating the market, driven by its robust IT infrastructure and favorable government policies. Canada, however, is witnessing faster growth due to increased investments in digital transformation initiatives and rising demand for container data centers in remote regions.

North America Container Data Center Market Competitive Landscape

• Schneider Electric: Schneider Electric has announced plans to invest$140 millionin its U.S. manufacturing operations in 2024, which will create approximately750 new jobsacross the country. This investment includes the transformation of an existing facility inMt. Juliet, Tennessee, which will manufacture custom electrical switchgear and medium voltage power distribution products, essential for supporting critical infrastructure and data center demands
• Amazon Web Services (AWS): In 2022, Amazon Web Services (AWS) developed a new type of data center that can be used to gain military advantage anywhere in the world. It is primarily a shipping container with the ability to access many of Amazon's cloud-based services and easily expand upon with more (shipping container) modules. Each modular data center (MDC) houses a self-contained data center with internal networking, cooling, and power distribution equipment.

North America Container Data Center Market Analysis

Growth Drivers

• Increasing Demand for Edge Computing: he North American Container Data Center Market is projected to grow exponentially, driven by advances in AI, 5G infrastructure, and the increasing reliance on edge computing. IoT device growth, expected to rise by 13% to 18.8 billion, will further fuel demand for containerized solutions. The expansion of hyperscale data centers and the need for energy-efficient, compact designs will shape the future of the market as companies adapt to sustainability demands.
• Expansion of 5G Networks: The rollout of 5G in North America, while 5G availability in urban areas increased to 35% in the second quarter of 2023, up from 20.7% in the same period in 2022, is expected to fuel the growth of container data centers. These data centers will support ultra-low latency and high-speed data processing at the edge. By 2024, it is projected that the majority of urban centers in the U.S. will have 5G infrastructure in place, further driving the demand for containerized data centers to manage the surge in data traffic.
• Energy Efficiency and Cost Reduction: The push for reduced operational costs and greater energy efficiency is boosting the adoption of container data centers. These pre-fabricated centers are designed to consume less energy than traditional facilities, providing substantial cost savings. As businesses increasingly prioritize sustainability, the appeal of container data centers continues to grow, making them a preferred choice for companies focused on reducing energy consumption and operational expenses.

Challenges

• Supply Chain Disruptions: Global supply chain challenges, aggravated by geopolitical tensions, are causing significant delays in the production and deployment of container data centers. The shortage of essential components, including cooling systems and power supplies, has led to extended installation timelines. This issue is expected to persist, with economic uncertainties and ongoing material shortages continuing to strain supply chains. As a result, companies may face prolonged wait times and increased costs for new data center installations.
• Security Concerns and Data Breaches: The rise of containerized data centers amplifies the risk of data breaches and cyberattacks. With their growing presence in sensitive areas like healthcare and finance, there is an urgent need for enhanced security measures. This necessity drives up costs and complicates operations as operators must invest heavily in cybersecurity to protect against increasingly sophisticated threats.

Government Initiatives

• Broadband Equity, Access, and Deployment (BEAD) Program: The BEAD program, part of the Infrastructure Investment and Jobs Act, allocates USD 42.5 billion to states for expanding broadband access, particularly in underserved areas, driving the market for data center services in the country. This initiative aims to ensure that all Americans have access to reliable high-speed internet, which is essential for participating in the modern digital economy.
• National Telecommunications and Information Administration (NTIA) Initiatives: The NTIA is actively working to close the digital divide by administering significant federal funding for broadband infrastructure. In 2023, NTIA reported on its efforts to connect communities and promote digital equity, emphasizing the importance of high-speed internet access for economic growth and social inclusion.

North America Container Data Center Market Future Outlook

The North American Container Data Center Market is projected to grow exponentially i.e. driven by advances in AI, 5G infrastructure, and the growing reliance on edge computing. The expansion of hyperscale data centers will further stimulate demand for containerized solutions, allowing companies to adapt to dynamic market conditions. Key players are expected to introduce more energy-efficient and compact solutions to meet the growing sustainability demands in the data center sector.

Future Market Trends

• Growth in Edge Computing Infrastructure: By 2028, edge computing infrastructure in North America is set to expand rapidly, driven by advancements in 5G and AI. This growth will boost the demand for containerized data centers in both remote and urban locations, as they become essential for efficient decentralized data processing and real-time data management. The shift towards edge computing will necessitate widespread deployment of these flexible, scalable solutions.
• Adoption of Sustainable and Energy-Efficient Solutions: Over the next five years, companies will increasingly adopt container data centers that emphasize sustainability and energy efficiency. This trend is driven by regulatory pressures and the need to lower operational costs. The focus on environmentally friendly and cost-effective technologies will become central to data center strategies, promoting the widespread use of advanced, energy-efficient solutions.