NextFin News - In 2025, the data center industry experienced a fundamental transformation as data centers moved from being a backend support infrastructure to assuming a central role in global digital ecosystems. This evolution was evident across multiple dimensions: the rapid adoption of modular data center designs validated through factory acceptance testing (FAT), and the increased deployment of advanced power quality monitoring (PQM) systems, which collectively underpin the resilience and efficiency demanded by hyperscale and edge computing providers.
Major players such as Schneider Electric, Vertiv, Eaton, Huawei Digital Power, and Delta Electronics have emerged as leaders in providing factory acceptance testing services designed to ensure electrical, thermal, and control system integrity prior to on-site deployment. The global modular data center FAT market is forecasted to grow from USD 735.8 million in 2026 to USD 1.6 billion by 2036 at a compound annual growth rate (CAGR) of 8.2%, driven by the surging requirement to accelerate commissioning timelines, mitigate field integration risks, and scale capacity rapidly. Key customer segments dominating demand include hyperscalers (34%), colocation providers (28%), industrial remote sites (20%), and government/defense organizations (18%).
Simultaneously, the market for data center power quality monitoring technology expanded substantially, with a valuation of USD 2.76 billion in 2026, expected to reach USD 5 billion by 2036 at a CAGR of 6.1%. This growth reflects the increasing need for real-time voltage stability analysis, harmonic distortion tracking, and transient event detection to protect sensitive high-performance computing equipment, especially in hyperscale environments which constitute 38% of demand. The deployment model largely favors new-build integrated solutions (46%), supplemented by retrofits and managed monitoring services.
The expansion in China, Brazil, the USA, South Korea, and Germany highlights regional leadership driven by national digital infrastructure programs, manufacturing precision, regulatory compliance, and energy efficiency mandates. China, in particular, leads modular factory testing adoption with a CAGR of 10.1%, underscoring its mass production capabilities and government-supported cloud infrastructure initiatives.
This comprehensive shift arises from multiple converging factors: the rise of AI and real-time analytic workloads increasing power density and requiring ultra-reliable, resilient infrastructure; the transition toward prefabricated modular units to reduce construction risk and enable agile scalability; and the heightened operational focus on power quality to optimize energy use and reduce downtime risk. Integration of factory acceptance testing ensures electrical systems, cooling, and controls operate seamlessly, while power quality monitoring platforms enable continuous performance insights necessary for predictive maintenance and compliance reporting.
Looking forward, the data center industry is set to continue this trajectory with accelerated modular deployments and widespread adoption of integrated monitoring analytics. Investments are expected to emphasize digital twin technologies and AI-driven operational intelligence, boosting predictive capabilities and energy efficiency. The demand for standardized testing protocols and interoperability among disparate module types will grow as global supply chains and deployments diversify. Additionally, the role of data centers in supporting emerging technologies such as 6G networks, edge AI, and decentralized cloud services will reinforce their strategic importance beyond traditional compute backends.
Under U.S. President Trump's administration, supportive policies geared toward infrastructure modernization and digital sovereignty are anticipated to further stimulate data center investments, positioning the U.S. as a critical market leader in this industry revolution. The ongoing convergence of modular architecture, energy optimization, and power quality assurance marks 2025 as the pivotal year when data centers fully transitioned from backend utilities to center-stage strategic assets in the digital economy.
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