U.K. Data Center Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)
Get a Comprehensive Overview of the U.K. Data Center Market Report Prepared by P&S Intelligence, Segmented by Infrastructure (IT Infrastructure, Support Infrastructure), Type (Co-Location, Hyperscale, Enterprise), End User (BFSI, IT & Telecom, Healthcare, Government & Defense), and Geographic Regions. This Report Provides Insights From 2017 to 2030.
U.K. Data Center Market Size
Market Statistics
Study Period | 2017 - 2030 |
2023 Market Size | USD 7,921.6 Million |
2024 Market Size | USD 8,064.2 Million |
2030 Forecast | USD 9,324.6 Million |
Growth Rate (CAGR) | 2.4% |
Largest Infrastructure Type | IT Infrastructure |
Largest End User | IT & Telecom |
Nature of the Market | Fragmented |
Market Size Comparison
Key Players
Key Report Highlights
|
Explore the market potential with our data-driven report
U.K. Data Center Market Analysis
The U.K. data center market generated revenue of USD 7,921.6 million in 2023, which is expected to witness a CAGR of 2.4% during 2024–2030, to reach USD 9,324.6 million by 2030.
The swift adoption of cloud-based solutions, increase in the access to 5G network connectivity, and enormous volumes of data being generated are expected to propel the market growth. These premises primarily include a network of servers, wherein enormous amounts of digital information can be stored, managed, and transmitted. This approach offers remote access to data and applications as and when needed, for the efficient running of business operations.
Moreover, several advanced technologies are being deployed to ensure the efficiency and performance of such facilities. The awareness regarding the usage of renewable sources of energy to power these facilities is also on the rise. The utilization of renewable energy sources would aid in reducing the carbon footprint and achieving the country’s net-zero carbon emission goals.
Automation, AI, IoT, and the latest versions of UPS batteries and generators are being deployed at data centers. Additionally, tech firms are introducing various kinds of software for monitoring the operations of these facilities and providing information regarding the various aspects of their infrastructure, such as the state of the cooling systems and generators, as well as temperature conditions. Moreover, variations in the design of components such as switches, servers, and racks are being done according to the Open Compute Project (OCP) standards.
The growing volume of digital information is helping organizations grow and make better decisions, as they are leveraging it to analyze historical patterns and make future decisions accordingly. Businesses store, process, and use data to improve their products and services, maintain customer relations, and increase profitability.
Industry experts suggest that most of the companies with more than 10 employees collect some form of digitized data, and the larger ones utilize it for improving their marketing; the digital information is transferred internationally as well. Hence, the growth in data generation is expected to propel the demand of companies for facilities to store it securely.
U.K. Data Center Market Trends & Drivers
Utilization of Renewable Sources of Energy in Power Data Centers Is Biggest Trend
- According to an article by the International Energy Agency (IEA), the U.K. has a goal to reduce its economy-wide greenhouse gas emissions by at least 68% by 2030 from 1990 levels and reach net-zero levels by 2050. Data centers, specifically, are expected to become carbon-neutral by approximately 2030.
- The awareness regarding the use of renewable sources of energy to reduce carbon emissions and have a sustainable lifestyle has been growing rapidly. Moreover, there are certain regulations that mandate companies employing 250 or more employees or a certain amount of turnover to report their power usage, to comply with the Energy Savings Opportunity Scheme (ESOS).
- There is another regulation wherein the companies are required to comply with and report under the Streamlined Energy and Carbon Reporting (SECR) scheme. Moreover, companies are adopting sustainable approaches such as green roofs, installation of solar panels, and planting orchards in and around data centers.
Rampant Adoption of Cloud-Based Solutions and Services in U.K. Is Key Market Drivers
- Cloud-based solutions and services offer various benefits to organizations, such as data security, ample storage, cost and energy savings, and access to various computing resources, at a low cost. According to a government agency, the U.K. is one of the largest markets for cloud solutions and services in Europe, with revenue from public cloud services amounting to more than USD 10 billion in 2022. Moreover, as per some industry experts, companies that have adopted cloud solutions have reported a significant increase in efficiency, as well as the modernization of their IT infrastructure.
- Since cloud services are provided through data centers, as they have the related essential infrastructure, a rise in the demand for cloud-based solutions would subsequently lead to an increase in the demand for such premises.
Frequent Disruptions in Power Supply and Connectivity Are Prominent Challenges
- According to the International Energy Agency (IEA), 1–1.5% of the global electricity usage can be attributed to data centers and data transmission networks. Due to the high workload on data centers, their energy usage is increasing.
- These facilities need access to a continuous supply of electricity to function. A lag in power supply or downtime can lead to data loss, file corruption, and damage to equipment, which can have a critical impact on organizations’ business operations. In case a power failure occurs in a data center, the uptime is huge, which may hamper the market growth. Thus, power backup systems, such as UPS or generators, are essential to prevent any interference in data center operations.
U.K. Data Center Industry Outlook
Infrastructure Type Insights
- In terms of revenue, the IT infrastructure category held the larger share, of around 70% in the U.K. data center market in 2023, and it will continue to dominate the infrastructure segment over the forecast period. This can be attributed to the fact that the IT Infrastructure serves as the backbone of such facilities; therefore, substantial expenditure goes into procuring it.
During the study, we analyzed two infrastructure types in the report:
- IT Infrastructure (Larger Category)
- Support Infrastructure (Faster-Growing Category)
Type Insights
- The co-location type is projected to hold the largest share, of around 45%, in 2030. This can be attributed to the cost-effectiveness and flexibility provided by these data centers to move to higher bandwidths, which enables owners to meet the demand for higher traffic without repeatedly making capital investments.
- Additionally, since spikes in data come from a large number of users in these facilities over time, bandwidth costs are significantly reduced, and thus, they have a higher adoption rate.
The types covered in the report are:
- Co-Location (Largest Category)
- Hyperscale
- Enterprise (Fastest-Growing Category)
End User Analysis
- The IT & telecom category, under segmentation by end user, is likely to hold the dominant market share, of 35%, in 2030. The main reason for this is the continuous deployment of advanced software and applications in the IT service industry and the establishment of several startups across the nation.
- Meanwhile, the telecom sector has witnessed a surge in the count of mobile internet users, which has created a massive demand for data storage in the past few years. The advent of technologies such as 5G and IoT is expected to drive growth in the IT & telecom industry, thereby creating substantial data volumes and, in turn, propelling the U.K. data center market in the coming years.
- The healthcare category is projected to witness the highest CAGR, of 3.0%, during 2024–2030 in the market. The growth is attributed to the increasing importance of data storage in the healthcare industry.
- Additionally, government regulations, such as the EU 2016/679, have made it essential for public and private healthcare service providers across Europe to maintain electronic health records of patients and protect their privacy.
Below are the end users covered in the report:
- BFSI
- IT & Telecom (Largest Category)
- Healthcare (Fastest-Growing Category)
- Government & Defense
- Others
U.K. Data Center Market Share
The market has a high degree of fragmentation owing to the presence of many players. The continual appearance of new entrants is impacting the established and new service providers. The U.K. data center market growth is attributed to the huge volumes of internet traffic and the presence of several cloud service providers in and around London.
Furthermore, the key markets in the nations are closer to IT and financial hubs. Hence, the majority of the data centers are located in regions such as London, Southeastern U.K., and Northwestern U.K. Besides, the majority of the internet traffic in the kingdom is being exchanged at the key internet hubs in the major cities, including Manchester, Liverpool, and Slough. In addition, the market has significantly grown in the East Midlands and West Midlands regions, which continue to attract key telecom companies, internet providers, and cloud service providers.
Companies Offering Data Centers in the U.K.:
- Equinix Inc.
- Arista Networks Inc.
- Lenovo Group Limited
- NetApp Inc.
- Fujitsu Limited
- Juniper Networks Inc.
- International Business Machines (IBM) Corporation
- Hewlett Packard Enterprise Company
- Dell Technologies Inc.
- Atos SE
- Cisco Systems Inc.
U.K. Data Center Market News
- In December 2022, Eaton Corporation plc expanded its suite of cybersecurity services and leveraged its global partnership with Tenable Inc., which helps customers take steps to protect their businesses.
- AIREDALE INTERNATIONAL AIR CONDITIONING LTD. has unveiled its Optimiser solution, a controls package that delivers optimal performance throughout the cooling system in large data centers using chilled water, to meet the industry demand for sustainable, stable, and secure cooling. This is in response to the shift of these facilities toward complex variable flow primary-only chilled-water systems.
- In December 2022, ABB Ltd. completed the divestment of its remaining 19.9% equity stake in the Hitachi Energy joint venture, which was formed when Hitachi acquired an 80.1% stake in ABB’s Power Grids business in 2020, to Hitachi Ltd.
- In October 2022, SPIE UK signed an agreement to be acquired by Imtech, which is jointly owned by Dalkia and EDF.
Frequently Asked Questions About This Report
The U.K. data center market generated a value of USD 7,921.6 million in 2023.
During 2024-2030, the data center market in the U.K. will grow at a 2.4% CAGR.
The U.K. data center industry will reach a value of USD 9,324.6 million in 2030.
The usage of renewable sources of energy in power data centers is the key trend in the U.K. data center industry.
The rapid acceptance of cloud-based solutions, rising access to 5G network connectivity, and huge volumes of data being created are the major drivers for the data center market in the U.K.
IT & Telecom is the largest end user in the data center industry in the U.K.
Request the Free Sample Pages
Want a report tailored exactly to your business need?
Request CustomizationWe are Trusted by
Working with P&S Intelligence and their team was an absolute pleasure – their awareness of timelines and commitment to value greatly contributed to our project's success. Eagerly anticipating future collaborations.
McKinsey & Company
IndiaOur insights into the minutest levels of the markets, including the latest trends and competitive landscape, give you all the answers you need to take your business to new heights
We take a cautious approach to protecting your personal and confidential information. Trust is the strongest bond that connects us and our clients, and trust we build by complying with all international and domestic data protection and privacy laws