U.K. Data Center Market to Generate $13,270 Million Revenue by 2040
- Published: March 2023
The U.K. data center market size is expected to advance at a CAGR of 3.06% during 2022–2040, to reach USD 13,270 million by 2040.
The constant increase in the utilization of cloud-based solutions, the exponential growth being witnessed in data generation, and the advent of the latest network technologies, such as 5G, are the main factors stirring the market growth.
Data centers mainly comprise a network of servers, wherein huge volumes of data are stored, processed, distributed, or transmitted. They enable remote access to data as well as applications as and when required, so that businesses can function without restriction.
The U.K. is one of the key technology hubs in the world. The rising demand for 5G, AI, and VR is revolutionizing the enterprise technology market in the country. Furthermore, the increasing usage of IoT, cloud, and big data and the rising number of mobile users are driving the construction of data centers here. There are already 400+ such facilities in the U.K., and the numbers are likely to grow in the coming years.
London To Hold Largest Market Share over Forecast Period
London held the largest share of the U.K. data center market in the past, attributed to the huge volumes of internet traffic and the presence of several cloud service providers in and around the British capital.
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.
Some of the major companies operating in the U.K. data center market are Arista Networks Inc., Lenovo Group Limited, NetApp, Fujitsu Limited, 2bm LTD., Atkins Ltd., BladeRoom Group Ltd., JCA Engineering Ltd., ABB Ltd., Cummins Inc., Caterpillar Inc., and Eaton Corporation plc.