Micro Data Center Market Report By Insights, Size, and Growth - 2031

The micro data center sector was valued at approximately US$ 4.04 billion in 2023 and is projected to grow to around US$ 11.93 billion by 2031, reflecting a compound annual growth rate (CAGR) of 14.5% during the period from 2023 to 2031.

This market is categorized into five primary regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. In 2023, North America led the market, followed by Europe and APAC. The growth of the micro data center market in North America is significantly influenced by the rising demand for edge computing solutions and the rollout of 5G networks. For example, a report by CBRE from May 2022 highlighted that Canadian cities might soon see micro data centers installed in parking areas near businesses, rather than in traditional, large central data centers. Additionally, U.S. telecommunications firms are actively deploying micro data centers at cell towers and network aggregation points to improve network efficiency and minimize latency. The introduction of advanced power solutions, including sophisticated uninterruptible power supply (UPS) systems, is anticipated to further enhance market growth. The ongoing digital transformation across various industries, along with the increasing data generated by IoT devices, is driving the demand for micro data centers. These facilities provide benefits such as portability, scalability, and energy efficiency, making them an attractive choice for organizations aiming to optimize their data management strategies.

The micro data center market in the Asia Pacific region is expected to witness the highest growth rate from 2023 to 2031. This region is characterized by a diverse population and a rapidly expanding digital economy, which fuels the demand for localized data processing and storage solutions. APAC has been a leader in adopting edge computing, driven by the rise of IoT devices, smart city projects, and the necessity for real-time data processing. The region has seen a notable increase in internet penetration, leading to a rise in data consumption and the need for localized data solutions. According to the GSM Association, the IT sector has played a crucial role in enhancing global connectivity. In 2021, there were 4.2 billion internet subscribers worldwide, with APAC accounting for 59% of that figure, projected to increase to 62% by 2025. The growth of edge computing is closely tied to the rise in internet usage. Micro data centers are essential for supporting edge computing infrastructure by positioning computing resources closer to data sources, thereby reducing latency and enhancing performance. These facilities are vital for deploying small-scale data centers in various locations, including urban areas, to facilitate rapid data processing and lessen dependence on centralized data centers. Micro data centers are instrumental in meeting the increasing demand for low-latency applications and services, such as video streaming, e-commerce, and mobile gaming.

In the EMEA region, the micro data center market is divided based on rack type into single rack and multi rack categories. The single rack segment holds the largest share of the micro data center market. A single rack micro data center is designed for applications where the cabinet count is up to 10 and the total load is below 40kVA. This compact, self-contained solution encompasses all the essential functions of a traditional data center within a smaller footprint, making it ideal for edge computing applications. These micro data centers typically include networking, computing, storage, thermal management, power supply, distribution systems, battery, cooling systems, and security features. Their compact design allows for rapid deployment in limited spaces and can be installed almost anywhere with access to power and cooling. Key players in the single rack micro data center market include Cannon Technologies Ltd, Delta Power Solutions, Vertiv Group, and Rittal GmbH & Co. KG, among others.

Prominent companies in the micro data center market include Eaton Corp Plc, Cannon Technologies Ltd, SCH?FER Ausstattungssysteme GmbH, Rittal GmbH & Co KG, Delta Electronics Inc, Datwyler IT Infra GmbH, Schneider Electric SE, Intellinet Network Solutions, Panduit, Legrand SA, and Vertiv Group Corp, all of which are featured in this market analysis.

The overall size of the micro data center market has been determined through a combination of primary and secondary research methods. Extensive secondary research has been conducted using both internal and external sources to gather qualitative and quantitative data regarding the micro data center market size. This process also aids in providing an overview and forecast of the market across all segments. Additionally, numerous primary interviews have been conducted with industry stakeholders to validate the data and gain analytical insights. This includes discussions with industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the micro data center market.