U.K. Data Center Market Size and Share Analysis by Infrastructure (IT Infrastructure, Support Infrastructure), Type (Co-Location, Hyperscale, Enterprise), End User (BFSI, IT & Telecom, Healthcare, Government & Defense)- Industry Demand Forecast to 2040

Market Overview

The U.K. data center market stood at USD 7,711 million in 2022, and it is expected to witness a compound annual growth rate of 3.06% during 2022–2040, to reach USD 13,270 million by 2040.

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 aids in having remote access to data and applications as and when vital, 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 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 the 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.

Rampant Adoption of Cloud-Based Solutions and Services in U.K.

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.

Exponential Growth in Data Generation

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 in the U.K.

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IT infrastructure Would Continue Dominating Market till 2040

In terms of revenue, the IT infrastructure category held the larger share of the U.K. data center market in 2022, 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.

Co-Location Type Is Likely To Hold Largest Market Share during Projection Period

The co-location type is expected to witness the fastest growth and contribute the majority of the revenue to the market. This can be attributed to the cost-effectiveness and flexibility provided by these data centers to move to higher bandwidth levels, to allow owners to accommodate their traffic demand without having to make repeat capital investments.

Additionally, since data spikes are distributed over time across numerous users in these facilities, bandwidth costs are significantly reduced, and thus, they have a higher adoption rate.

IT & Telecom Sector To Lead Market

The IT & telecom category, under segmentation by end user, is likely to hold the dominant market share during the projection period. 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.

Major Companies Operating in U.K. Data Center Market Are:

• Arista Networks Inc.
• Lenovo Group Limited
• NetApp Inc.
• Fujitsu Limited
• 2bm LTD.
• Atkins Ltd.
• BladeRoom Group Ltd.
• JCA Engineering Ltd.
• ABB Ltd.
• Cummins Inc.
• Caterpillar Inc.
• Eaton Corporation plc

Market Size Breakdown by Segment

This fully customizable report gives a detailed analysis of the market from 2017 to 2040, based on all the relevant segments and geographies.

Based on Infrastructure

• IT Infrastructure
  • Server
  • Storage
  • Network
• Support Infrastructure
  • Electrical Infrastructure
    • Uninterruptible Power Supply (UPS) Systems
    • Generators
    • Power Distribution Units (PDUs)
    • Transfer Switches & Switchgears
    • Other Electrical Infrastructure
  • Mechanical Infrastructure
    • By cooling systems
      • CRAC & CRAH units
      • Chiller units
      • Cooling towers, condensers, & dry coolers
      • Economizers & evaporative coolers
    • By cooling technique
      • Air-based
      • Liquid-based
    • Racks
    • Other Mechanical Infrastructure
  • General Construction
    • Core & Shell Development
    • Installation & Commissioning Services
    • Engineering & Building Design
    • Fire Detection & Suppression
    • Physical Security
    • DCIM/BMS

Based on Type

• Co-Location
• Hyperscale
• Enterprise

Based on End User

• BFSI
• IT & Telecom
• Healthcare
• Government & Defense

Geographical Analysis

• U.K.
  • London
  • South East
  • East Midlands
  • West Midlands
  • North East
  • North West