United Kingdom Data Center Market Size
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 2.19 Thousand MW |
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Market Volume (2029) | 3.61 Thousand MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 10.49 % |
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Fastest Growing by Tier Type | Tier 4 |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
United Kingdom Data Center Market Analysis
The United Kingdom Data Center Market size is estimated at 2.19 thousand MW in 2024, and is expected to reach 3.61 thousand MW by 2029, growing at a CAGR of 10.49%. Further, the market is expected to generate colocation revenue of USD 9,475.2 Million in 2024 and is projected to reach USD 18,218.5 Million by 2029, growing at a CAGR of 13.97% during the forecast period (2024-2029).
USD 9475.18 Million
Market Size in 2024
USD 18,218.50 Million
Market Size in 2029
20.9%
CAGR (2017-2023)
14.0%
CAGR (2024-2029)
IT Load Capacity
2,187 MW
Value, IT Load Capacity, 2024
The investment for the DC facility is still ongoing in London, which is being focused on mega, massive, and large DC sizes. Slough is one of the major locations with 379.23 MW of IT load capacity, constituting 29 facilities.
Total Raised Floor Space
Sq. Ft. 10.76 M
Volume, Raised Floor Space, 2024
London holds the major share in this category. London is an IT hub, and the technology investment attracts investors to look for DC construction. Mega and massive data centers are preferred most in the region.
Installed Racks
538,059
Volume, Installed Racks, 2024
The country's total number of installed racks is expected to reach 889,896 units by 2029. London is expected to house the maximum number of racks by 2029.
# of DC Operators & DC Facilities
50 and 173
Volume, DC Facilities, 2024
The United Kingdom is a critical interchange and communications hub between North America and Europe, with over 50 undersea cables. Overall, there is a huge potential for growing data and government investment in fibre connectivity.
Leading Market Player
12.2%
Market Share, Digital Realty Trust, Inc., Inc.
Among the leading colocation service providers in the country, Digital Realty Trust Inc. offers the highest IT load capacity. Major cloud providers trust Digital Realty with mission-critical infrastructure.
Tier 3 data center accounted for majority share in terms of volume in 2023, it will continue its dominance during forecast period
- Tier 3 data centers are the most preferred due to features such as onsite assistance, power, and cooling redundancy. The Tier 3 DC market was operating at 1540.98 MW in 2022. The expected capacity during the forecast period is expected to grow from 1813.19 MW in 2023 to 3369.24 MW in 2029 at a CAGR of 10.88%. These data centers are 'concurrently maintainable' with redundant components as a key differentiator.
- SMBs generally prefer to use at least a tier III-rated system for the far superior redundancy protections offered. In the United Kingdom, SMEs account for 99.9% of the business population. At the start of 2022, there were estimated to be 5.5 million businesses in the UK private sector. Major adoption of tier 3 facilities is reflected in BFSI, telecom, and media and entertainment users are majorly adopting wholesale and hyperscale colocation. As of 2022, there are around 148 Tier 3 data centers in the country, and around 28 upcoming data centers are under construction with Tier 3 standards.
- Tier 4 is the next most preferred data centers by large enterprises due to their fault-tolerant functionality, lower downtime, and 99.99% uptime. It is expected that the market will showcase potential growth during the forecast period with the adoption of hyperscale colocation by major end users in the cloud and telecom sectors. The UK government's G-Cloud program is changing the way public sector organizations purchase information and communications technology. In 2022, the country had two Tier 4 data centers owned by Exascale Ltd and ServerMania.
- The Tier 1&2 data centers are the least preferred due to their single path for power and cooling and providing expected uptime of 99.671% (28.8 hours of downtime annually) when compared to Tier 3 and Tier 4 facilities.
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United Kingdom Data Center Market Trends
Increase smartphone penetration rate, emergence of 4G and 5G services to boost market growth
- The number of smartphone users in the country was 63.46 million in 2022 and is expected to witness a CAGR of 1.01% during the forecast period to reach a value of 68 million by 2029.
- The smartphone penetration rate in the United Kingdom has increased each year, reaching an overall figure of 93% in 2022. Among the age group of 16-24, the smartphone ownership rate was 99% in 2022. The number of mobile internet users in the United Kingdom reached 62.3 million, a figure which is projected to increase by approximately 2.86 million and amount to over 65 million by 2026 with the emergence of 4G and 5G. Further, since the COVID-19 pandemic hit, people have increased their smartphone usage and spent more time on online gaming or media streaming platforms. As a result, in April 2020, the industry increased the spending limit on individual contactless card payments from GBP 30 to GBP 45 to help with online payments. Such a scenario has increased smartphone penetration and is currently following the same trend.
- The growth of the user base positively boosted the market demand for data centers. The increasing rate has positively upheld its growth in the e-commerce, media and entertainment, and BFSI sectors, where a large chunk of data has been generated. Since smartphones necessitate real-time processing on having a large data chunk, they mostly require a data center for storage. During the historical period, when smartphone usage penetration increased from 72% in 2017 to more than 90% in 2022, the number of racks in the data center increased from around 215k in 2017 to 388k in 2022. This trend is further expected to be witnessed during the forecast period.
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Phase out of 2G and 3G and adoption of 4G and 5G network and increase in use of mobile devices to drive market growth
- The United Kingdom's first 5G network was activated in May 2019, and 4G was launched in October 2012. Since being commissioned, both networks have shown an increment in their data speed. 4G speed increased from 12 Mbps in 2012 to 36.40 Mbps in 2022. Similarly, 5G speed increased from 139.5 Mbps in 2019 to 160.15 Mbps in 2022. In May 2022, according to an industry survey, around 67% of respondents in the United Kingdom (UK) had a 4G service on their smartphone, while about 25% had a 5G service.
- The UK will phase out 2G and 3G mobile services by 2033. The major strategy for all the operators is to turn off their 2G and 3G networks, allowing them to focus investments and spectrum resources on further improving the 4G customer experience while rolling out 5G. The UK government has outlined its intentions to invest in driving 5G and 6G development with the support of GBP 110 million (USD 135 million) worth of investment. Moreover, the switch-off date for 2G and 3G has been agreed upon with mobile-network operators Vodafone, EE, Virgin Media, O2, and Three.
- The growth in speed and better overall connectivity is paving the way for other end-user industries. In 2021, users in the United Kingdom spent an average of four hours per day using their mobile devices. This was an increase of 0.3 hours up from 2020. The number of social media users in the United Kingdom at the start of 2022 was equivalent to 84.3% of the total population, and it increased by 4.6 million between 2021 and 2022. Overall, this will increase the mobile data speed, increasing the data traffic, which thereby requires data centers for storing and processing data.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Emergence of 5G network, adoption of OTT services and digital connectivity to boost market growth
- Increase in full fiber connectivity network and fiber roll out in both urban and rural areas to drive market growth
- The Openreach Network and Virgin Media are the major fiber optic broadband networks in the United Kingdom
United Kingdom Data Center Industry Overview
The United Kingdom Data Center Market is fragmented, with the top five companies occupying 37.94%. The major players in this market are Digital Realty Trust Inc., Equinix Inc., NTT Ltd, Rackspace Technology Inc. and Virtus Data Centres Properties Ltd (STT GDC) (sorted alphabetically).
United Kingdom Data Center Market Leaders
Digital Realty Trust Inc.
Equinix Inc.
NTT Ltd
Rackspace Technology Inc.
Virtus Data Centres Properties Ltd (STT GDC)
Other important companies include Colt Technology Services, CyrusOne Inc., Global Switch Holdings Limited, Global Technical Realty SARL, Kao Data Ltd, Telehouse (KDDI Corporation), Vantage Data Centers LLC.
*Disclaimer: Major Players sorted in alphabetical order.
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United Kingdom Data Center Market News
- October 2022: CyrusOne announced that they proposed a new data center in Iver Heath, Buckinghamshire, UK. The site will have 10 data halls supporting around 90MW of capacity and the project would include a new on-site substation.
- August 2022: Coltannounced to open a new data center in Hayes, West London, that would more than triple its existing footprint in the UK capital. It will deliver a new purpose-built of 50MW in 2.1-hectare data center campus known as 'London 4'.
- March 2022: Kao Data announced plans for a second building for its Harlow campus in the UK. The company says construction is now underway on its second 10 MW facility outside London.
Free with this Report
We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.
United Kingdom Data Center Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. MARKET OUTLOOK
- 4.1 It Load Capacity
- 4.2 Raised Floor Space
- 4.3 Colocation Revenue
- 4.4 Installed Racks
- 4.5 Rack Space Utilization
- 4.6 Submarine Cable
5. Key Industry Trends
- 5.1 Smartphone Users
- 5.2 Data Traffic Per Smartphone
- 5.3 Mobile Data Speed
- 5.4 Broadband Data Speed
- 5.5 Fiber Connectivity Network
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5.6 Regulatory Framework
- 5.6.1 United Kingdom
- 5.7 Value Chain & Distribution Channel Analysis
6. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
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6.1 Hotspot
- 6.1.1 London
- 6.1.2 Rest of United Kingdom
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6.2 Data Center Size
- 6.2.1 Large
- 6.2.2 Massive
- 6.2.3 Medium
- 6.2.4 Mega
- 6.2.5 Small
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6.3 Tier Type
- 6.3.1 Tier 1 and 2
- 6.3.2 Tier 3
- 6.3.3 Tier 4
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6.4 Absorption
- 6.4.1 Non-Utilized
- 6.4.2 Utilized
- 6.4.2.1 By Colocation Type
- 6.4.2.1.1 Hyperscale
- 6.4.2.1.2 Retail
- 6.4.2.1.3 Wholesale
- 6.4.2.2 By End User
- 6.4.2.2.1 BFSI
- 6.4.2.2.2 Cloud
- 6.4.2.2.3 E-Commerce
- 6.4.2.2.4 Government
- 6.4.2.2.5 Manufacturing
- 6.4.2.2.6 Media & Entertainment
- 6.4.2.2.7 Telecom
- 6.4.2.2.8 Other End User
7. COMPETITIVE LANDSCAPE
- 7.1 Market Share Analysis
- 7.2 Company Landscape
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7.3 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
- 7.3.1 Colt Technology Services
- 7.3.2 CyrusOne Inc.
- 7.3.3 Digital Realty Trust Inc.
- 7.3.4 Equinix Inc.
- 7.3.5 Global Switch Holdings Limited
- 7.3.6 Global Technical Realty SARL
- 7.3.7 Kao Data Ltd
- 7.3.8 NTT Ltd
- 7.3.9 Rackspace Technology Inc.
- 7.3.10 Telehouse (KDDI Corporation)
- 7.3.11 Vantage Data Centers LLC
- 7.3.12 Virtus Data Centres Properties Ltd (STT GDC)
- 7.4 LIST OF COMPANIES STUDIED
8. KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS
9. APPENDIX
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9.1 Global Overview
- 9.1.1 Overview
- 9.1.2 Porter’s Five Forces Framework
- 9.1.3 Global Value Chain Analysis
- 9.1.4 Global Market Size and DROs
- 9.2 Sources & References
- 9.3 List of Tables & Figures
- 9.4 Primary Insights
- 9.5 Data Pack
- 9.6 Glossary of Terms
List of Tables & Figures
- Figure 1:
- VOLUME OF IT LOAD CAPACITY, MW, UNITED KINGDOM, 2017 - 2029
- Figure 2:
- VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), UNITED KINGDOM, 2017 - 2029
- Figure 3:
- VALUE OF COLOCATION REVENUE, USD MILLION, UNITED KINGDOM, 2017 - 2029
- Figure 4:
- VOLUME OF INSTALLED RACKS, NUMBER, UNITED KINGDOM, 2017 - 2029
- Figure 5:
- RACK SPACE UTILIZATION, %, UNITED KINGDOM, 2017 - 2029
- Figure 6:
- COUNT OF SMARTPHONE USERS, IN MILLION, UNITED KINGDOM, 2017 - 2029
- Figure 7:
- DATA TRAFFIC PER SMARTPHONE, GB, UNITED KINGDOM, 2017 - 2029
- Figure 8:
- AVERAGE MOBILE DATA SPEED, MBPS, UNITED KINGDOM, 2017 - 2029
- Figure 9:
- AVERAGE BROADBAND SPEED, MBPS, UNITED KINGDOM, 2017 - 2029
- Figure 10:
- LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, UNITED KINGDOM, 2017 - 2029
- Figure 11:
- VOLUME OF IT LOAD CAPACITY, MW, UNITED KINGDOM, 2017 - 2029
- Figure 12:
- VOLUME OF HOTSPOT, MW, UNITED KINGDOM, 2017 - 2029
- Figure 13:
- VOLUME SHARE OF HOTSPOT, %, UNITED KINGDOM, 2017 - 2029
- Figure 14:
- VOLUME SIZE OF LONDON, MW, UNITED KINGDOM, 2017 - 2029
- Figure 15:
- VOLUME SHARE OF LONDON, MW, HOTSPOT, %, UNITED KINGDOM, 2017 - 2029
- Figure 16:
- VOLUME SIZE OF REST OF UNITED KINGDOM, MW, UNITED KINGDOM, 2017 - 2029
- Figure 17:
- VOLUME SHARE OF REST OF UNITED KINGDOM, MW, HOTSPOT, %, UNITED KINGDOM, 2017 - 2029
- Figure 18:
- VOLUME OF DATA CENTER SIZE, MW, UNITED KINGDOM, 2017 - 2029
- Figure 19:
- VOLUME SHARE OF DATA CENTER SIZE, %, UNITED KINGDOM, 2017 - 2029
- Figure 20:
- VOLUME SIZE OF LARGE, MW, UNITED KINGDOM, 2017 - 2029
- Figure 21:
- VOLUME SIZE OF MASSIVE, MW, UNITED KINGDOM, 2017 - 2029
- Figure 22:
- VOLUME SIZE OF MEDIUM, MW, UNITED KINGDOM, 2017 - 2029
- Figure 23:
- VOLUME SIZE OF MEGA, MW, UNITED KINGDOM, 2017 - 2029
- Figure 24:
- VOLUME SIZE OF SMALL, MW, UNITED KINGDOM, 2017 - 2029
- Figure 25:
- VOLUME OF TIER TYPE, MW, UNITED KINGDOM, 2017 - 2029
- Figure 26:
- VOLUME SHARE OF TIER TYPE, %, UNITED KINGDOM, 2017 - 2029
- Figure 27:
- VOLUME SIZE OF TIER 1 AND 2, MW, UNITED KINGDOM, 2017 - 2029
- Figure 28:
- VOLUME SIZE OF TIER 3, MW, UNITED KINGDOM, 2017 - 2029
- Figure 29:
- VOLUME SIZE OF TIER 4, MW, UNITED KINGDOM, 2017 - 2029
- Figure 30:
- VOLUME OF ABSORPTION, MW, UNITED KINGDOM, 2017 - 2029
- Figure 31:
- VOLUME SHARE OF ABSORPTION, %, UNITED KINGDOM, 2017 - 2029
- Figure 32:
- VOLUME SIZE OF NON-UTILIZED, MW, UNITED KINGDOM, 2017 - 2029
- Figure 33:
- VOLUME OF COLOCATION TYPE, MW, UNITED KINGDOM, 2017 - 2029
- Figure 34:
- VOLUME SHARE OF COLOCATION TYPE, %, UNITED KINGDOM, 2017 - 2029
- Figure 35:
- VOLUME SIZE OF HYPERSCALE, MW, UNITED KINGDOM, 2017 - 2029
- Figure 36:
- VOLUME SIZE OF RETAIL, MW, UNITED KINGDOM, 2017 - 2029
- Figure 37:
- VOLUME SIZE OF WHOLESALE, MW, UNITED KINGDOM, 2017 - 2029
- Figure 38:
- VOLUME OF END USER, MW, UNITED KINGDOM, 2017 - 2029
- Figure 39:
- VOLUME SHARE OF END USER, %, UNITED KINGDOM, 2017 - 2029
- Figure 40:
- VOLUME SIZE OF BFSI, MW, UNITED KINGDOM, 2017 - 2029
- Figure 41:
- VOLUME SIZE OF CLOUD, MW, UNITED KINGDOM, 2017 - 2029
- Figure 42:
- VOLUME SIZE OF E-COMMERCE, MW, UNITED KINGDOM, 2017 - 2029
- Figure 43:
- VOLUME SIZE OF GOVERNMENT, MW, UNITED KINGDOM, 2017 - 2029
- Figure 44:
- VOLUME SIZE OF MANUFACTURING, MW, UNITED KINGDOM, 2017 - 2029
- Figure 45:
- VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, UNITED KINGDOM, 2017 - 2029
- Figure 46:
- VOLUME SIZE OF TELECOM, MW, UNITED KINGDOM, 2017 - 2029
- Figure 47:
- VOLUME SIZE OF OTHER END USER, MW, UNITED KINGDOM, 2017 - 2029
- Figure 48:
- VOLUME SHARE OF MAJOR PLAYERS, %, UNITED KINGDOM, 2022
United Kingdom Data Center Industry Segmentation
London are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.
- Tier 3 data centers are the most preferred due to features such as onsite assistance, power, and cooling redundancy. The Tier 3 DC market was operating at 1540.98 MW in 2022. The expected capacity during the forecast period is expected to grow from 1813.19 MW in 2023 to 3369.24 MW in 2029 at a CAGR of 10.88%. These data centers are 'concurrently maintainable' with redundant components as a key differentiator.
- SMBs generally prefer to use at least a tier III-rated system for the far superior redundancy protections offered. In the United Kingdom, SMEs account for 99.9% of the business population. At the start of 2022, there were estimated to be 5.5 million businesses in the UK private sector. Major adoption of tier 3 facilities is reflected in BFSI, telecom, and media and entertainment users are majorly adopting wholesale and hyperscale colocation. As of 2022, there are around 148 Tier 3 data centers in the country, and around 28 upcoming data centers are under construction with Tier 3 standards.
- Tier 4 is the next most preferred data centers by large enterprises due to their fault-tolerant functionality, lower downtime, and 99.99% uptime. It is expected that the market will showcase potential growth during the forecast period with the adoption of hyperscale colocation by major end users in the cloud and telecom sectors. The UK government's G-Cloud program is changing the way public sector organizations purchase information and communications technology. In 2022, the country had two Tier 4 data centers owned by Exascale Ltd and ServerMania.
- The Tier 1&2 data centers are the least preferred due to their single path for power and cooling and providing expected uptime of 99.671% (28.8 hours of downtime annually) when compared to Tier 3 and Tier 4 facilities.
| Hotspot | London | ||
| Rest of United Kingdom | |||
| Data Center Size | Large | ||
| Massive | |||
| Medium | |||
| Mega | |||
| Small | |||
| Tier Type | Tier 1 and 2 | ||
| Tier 3 | |||
| Tier 4 | |||
| Absorption | Non-Utilized | ||
| Utilized | By Colocation Type | Hyperscale | |
| Retail | |||
| Wholesale | |||
| Utilized | By End User | BFSI | |
| Cloud | |||
| E-Commerce | |||
| Government | |||
| Manufacturing | |||
| Media & Entertainment | |||
| Telecom | |||
| Other End User |
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Market Definition
- IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
- ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
- RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
- DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
- TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
- COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
- END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
| Keyword | Definition |
|---|---|
| Rack Unit | Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches. |
| Rack Density | It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning. |
| IT Load Capacity | The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW). |
| Absorption Rate | It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity. |
| Raised Floor Space | It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter. |
| Computer Room Air Conditioner (CRAC) | It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center. |
| Aisle | It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle. |
| Cold Aisle | It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature. |
| Hot Aisle | It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC. |
| Critical Load | It includes the servers and other computer equipment whose uptime is critical for data center operation. |
| Power Usage Effectiveness (PUE) | It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient. |
| Redundancy | It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected. |
| Uninterruptible Power Supply (UPS) | It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only. |
| Generators | Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption. |
| N | It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure. |
| N+1 | Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required. |
| 2N | It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center. |
| In-Row Cooling | It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature. |
| Tier 1 | Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours. |
| Tier 2 | A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours. |
| Tier 3 | A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours. |
| Tier 4 | It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes. |
| Small Data Center | Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center. |
| Medium Data Center | Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center. |
| Large Data Center | Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center. |
| Massive Data Center | Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center. |
| Mega Data Center | Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center. |
| Retail Colocation | It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs). |
| Wholesale Colocation | It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises. |
| Hyperscale Colocation | It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+). |
| Mobile Data Speed | It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest. |
| Fiber Connectivity Network | It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km). |
| Data Traffic per Smartphone | It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB). |
| Broadband Data Speed | It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable. |
| Submarine Cable | A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another. |
| Carbon Footprint | It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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