Containerized Data Center Market Trends

Growth Drivers

• Growing focus on energy efficiency and sustainability: Concerns over sustainability and rising energy costs are driving businesses to consider energy-efficient data center options. Containerized data centers utilize advanced cooling methods—including liquid cooling or free air, which provide significant reductions in energy consumption. Containerized data centers also allow for increased use of renewable energy and modular deployment close to renewable energy use. As more regulatory pressure for energy reduction and commitments to corporate responsibility continue, energy-efficient data centers that provide a low-carbon footprint become even more attractive to organizations looking to mitigate their impact on the environment without an impact on performance.   
• Growth of IoT and edge computing: The rise of edge computing and IoT (Internet of Things) applications has led to demand for data centers that are in containers, at the edge, or near the end-user. Containers can be deployed to a remote or decentralized location, such as cell towers, factories, smart cities, or other locations, to locally process data to remove latency and lower bandwidth on the central data center edge. Edge computing technology will become even more critical with the expansion of 5G networks, which are the backbone for real-time analytics, autonomous vehicles, and other latency-sensitive applications.
• Rapid deployment and scalability: Containerized data centers can be deployed far more quickly than traditional data centers. The modular units can be shipped, installed, and operational in a matter of weeks, making them worthwhile for enterprises that need to scale up capacity with little advance notice. This efficiency can be a key capability where there is uncertainty in the marketplace because companies can experience spikes in data transmission or need to activate a new project relatively quickly. Containerized data centers include the capability to allow for incremental scalability as additional containers can be purchased when needed, thus providing the enterprise the opportunity to not make a capital investment in advance.

Major Foreign and Corporate Investments in the United States by Sector and Focus

Challenges

• Limited Capacity and Customization Constraints: Containerized data centers intentionally have limitations on space and power usage. The physical size of each container is fixed, making it impossible to add as many servers, cooling, and storage components as desired. Containers can be built to be scalable, but 'scaling' in this context typically means adding containers, which may not be practicable depending on site constraints. Finally, because containers are typically built to be volume efficient, the standardized specification can result in limited customizations, which are often required for specialized enterprise requirements or complex legacy system integrations.
• Complex Cooling and Thermal Management:  While containerized data centers can utilize more efficient cooling technologies, addressing heat in a small enclosed space can still pose a significant challenge. When hardware is densely populated in a small volume, there is a higher risk of overheating regardless of the effectiveness of cooling technologies. Containerized data centers would be subject to more complications if deployed in hot or severe operating conditions; further studies into thermal management will again be required for that situation.