North America Micro Data Center Market Size and Forecast (2021 - 2031), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Rack Type (Single Rack and Multi Rack), Organization Size (Large Enterprises and SMEs), and Application (IT

The North American micro data center market is poised for remarkable growth, projected to reach approximately USD 5,357.76 million by 2031, up from USD 1,849.09 million in 2023. This growth trajectory indicates a compound annual growth rate (CAGR) of 14.2% from 2023 to 2031, reflecting the increasing demand for edge computing solutions and the expansion of 5G infrastructure across the region.

Executive Summary and Market Analysis

The micro data center market in North America is witnessing a surge in demand, primarily fueled by the rise of edge computing and the deployment of advanced telecommunications infrastructure. A report by CBRE from May 2022 highlights that Canadian cities may soon see micro data centers installed in convenient locations, such as parking lots, to serve local businesses more effectively, moving away from traditional large-scale data centers. In the United States, telecommunications companies are strategically positioning micro data centers at cell towers and network aggregation points to enhance network performance and minimize latency.

Innovative power solutions, including advanced uninterruptible power supply (UPS) systems, are expected to further stimulate market growth. The ongoing digital transformation across various sectors, combined with the increasing data generated by Internet of Things (IoT) devices, is driving the demand for micro data centers. These facilities are recognized for their portability, scalability, and energy efficiency, making them an attractive option for organizations aiming to improve their data management strategies.

For example, in March 2024, Eaton, a leader in intelligent power management, launched a modular data center solution tailored for organizations needing to quickly adapt to the demands of edge computing, machine learning, and artificial intelligence. Eaton's SmartRack modular data centers can be deployed within days across various environments, including enterprise and colocation data centers, manufacturing sites, and warehouses. These modular solutions integrate IT racks, cooling systems, and service enclosures, providing a performance-optimized setup for critical IT equipment, capable of supporting loads of up to 150 kW. The robust and transportable nature of Eaton's modular data centers allows for efficient sizing, configuration, commissioning, and deployment to meet diverse operational requirements, further propelling the growth of the micro data center market in North America.

Strategic Insights

Market Segmentation Analysis

The North American micro data center market can be segmented based on rack type, organization size, and application.

Rack Type: The market is divided into single rack and multi rack categories. In 2023, the single rack segment held a larger market share.
Organization Size: The market is also categorized into large enterprises and small to medium-sized enterprises (SMEs), with large enterprises dominating the market share in 2023.
Application: The applications of micro data centers include IT and telecom, banking, financial services, and insurance (BFSI), retail, healthcare, manufacturing, and others. The IT and telecom sector accounted for the largest share of the market in 2023.

Market Outlook

The increasing adoption of technologies such as IoT and 5G, along with the rising demand for content distribution, has heightened the need for low-latency data processing and storage solutions. Traditional centralized data centers, like those operated by Amazon Web Services (AWS) and Microsoft Azure, are not designed to handle the specific requirements of distributed workloads that necessitate proximity to end users. Micro data centers, being smaller and more flexible, can be deployed in locations where traditional data centers are impractical, thus addressing the challenges of low-latency data processing and storage in a cost-effective manner. This capability ensures faster response times and enhances user experience, driving the global demand for micro data centers.

Country Insights

The North American micro data center market is primarily composed of the United States, Canada, and Mexico, with the US holding the largest market share in 2023. In the US, micro data centers are rapidly gaining popularity as organizations seek efficient solutions to meet the demands of edge computing and low-latency data processing. These compact, self-contained units integrate essential IT infrastructure, including power, cooling, and security, making them suitable for deployment in various environments such as offices, warehouses, and remote locations. The increasing reliance on IoT and 5G technologies is expected to significantly expand the US micro data center market, providing organizations with the necessary flexibility and scalability to support their evolving digital needs.

Leading companies in this market, such as Vertiv and Schneider Electric, are at the forefront of innovation, offering advanced micro data center solutions tailored to diverse operational requirements. For instance, in April 2024, Vertiv launched the Vertiv SmartAisle 3, a micro modular data center system that leverages artificial intelligence (AI) to enhance operational efficiency within data center environments.

Company Profiles

Key players in the North American micro data center market include Eaton Corp Plc, Cannon Technologies Ltd, SCHÄFER Ausstattungssysteme GmbH, Rittal GmbH & Co KG, Delta Electronics Inc, Datwyler IT Infra GmbH, Schneider Electric SE, Intellinet Network Solutions, Panduit, Legrand SA, Vertiv Group Corp., STULZ GMBH, Hefei Coolnet Power Co., Ltd., Vericom Global Solutions, and Canovate, among others. These companies are employing various strategies, including expansion, product innovation, and mergers and acquisitions, to enhance their market presence and offer innovative solutions to their customers. Show more