Modular data centre deployment is increasing globally as interoperability standards advance and energy efficiency regulations tighten, prompting operators in Europe and beyond to adjust strategies.
Germany and the European Union are implementing stricter measures to reduce data centre energy consumption. Modular designs are gaining traction, offering flexible solutions that support compliance, integration, and rapid scalability.
Background
In the past year, Germany's Energy Efficiency Act (EnEfG) introduced phased Power Usage Effectiveness (PUE) and waste-heat reuse requirements. Existing data centres must achieve a PUE of 1.5 or lower by July 1, 2027, and 1.3 by July 1, 2030. New facilities operating from July 1, 2026, must attain a PUE of 1.2 after a two-year optimization period . New data centres in Germany must also reach an Energy Reuse Factor (ERF) of at least 10% by July 1, 2026, increasing to 20% by 2028 1Dentons - How Germany’s Energy Efficiency Act will impact data center operators. At the EU level, updated reporting requirements came into effect on September 15, 2024, obligating data centres with IT loads above 500 kW to report PUE, energy use, water consumption, waste-heat reuse, and renewable energy share to a central EU database 2How EU Data Center Sustainability Rules Are Shaping the Future.
Market analysis indicates that prefabricated modular infrastructure is becoming mainstream. Global revenues are projected to grow from approximately USD 10 billion in 2025 to over USD 25 billion by 2030, with modular units expected to account for more than 40% of new data centre capacity additions by 2027 3Prefabricated Data Center Infrastructure Market 2025: Rapid Modular Adoption Drives 18% CAGR Through 2030 - Metranca.
Details
Modular data centre designs, including containerised and plug-and-play solutions, enable operators to meet evolving energy and regulatory targets efficiently. These systems reduce deployment timelines and support integrated waste-heat recovery in line with increasing ERF requirements. Industry forecasts show European adoption is accelerating due to sustainability mandates and data sovereignty regulations, especially in Germany, the UK, and Nordic countries 3Prefabricated Data Center Infrastructure Market 2025: Rapid Modular Adoption Drives 18% CAGR Through 2030 - Metranca.
Standardisation is progressing. In the United States, the ANSI/TIA-942-C standard for data centre infrastructure was updated in May 2024, refining specifications for electrical, mechanical, and resilience attributes. This update enhances interoperability among modular components and vendors 4TIA-942. Other frameworks, such as UL 2755, establish testing and certification protocols specific to modular data centre systems, supporting design validation and integration across markets 56/11/2025 THE EVOLUTION OF MODULAR DATA CENTERS:.
Outlook
Over the next 12 to 24 months, modular data centre adoption is expected to accelerate as operators utilize enhanced interoperability standards and comply with more stringent energy regulations. Upcoming EU legislation, including an energy efficiency package and a strategic digital infrastructure roadmap planned for Q1 2026, is set to further boost modular and sustainable deployments 6Data centres and energy consumption: evolving EU regulatory landscape and outlook for 2026 | White & Case LLP.
