The evolution of edge and by association, modular data centers has not met initial expectations, largely due to an insufficient network infrastructure and the lack of a commercially viable platform that requires local compute. Despite this, there's a new shift towards modular solutions that adhere to hyperscale standards, a trend that is being adopted by enterprises, the Department of Defense, and various federal and state agencies.

This shift is driven by several factors, including but not limited to the rapid advancement of technology, the increasing need for a shorter time to market, the growing demands of powering and cooling for AI, sustainability requirements, data sovereignty, and local power limitations. While this trend towards modular data centers is increasing, it remains under the radar, overshadowed by the industry's focus on AI and the growth of large hyperscale data center campuses. This paper explores the factors that are making customers choose modular data center solutions over traditional on premise, retail, or wholesale spaces.