Moulder was born on 11 June 1959 in Boston, Lincolnshire. He was educated at Boston Grammar School. He had an interest in music from an early age, listing Cream and The Beatles among his favourite artists. The first album he bought was Electric Warrior by T. Rex, and he was impressed by the quality of the recording. He joined his first band as a teenager and recorded a demo in a local studio; it was there that he realised that it had been the production that he had so enjoyed on Electric Warrior, and discovered that he was more interested in music engineering than performing.