Market Size of united kingdom data center Industry
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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.
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 | |||||||||||||||||
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United Kingdom Data Center Market Size Summary
The United Kingdom data center market is experiencing significant growth, driven by the increasing demand for data storage and processing capabilities. This expansion is largely attributed to the rise in smartphone penetration and mobile internet usage, which have surged due to the proliferation of 4G and 5G networks. The market is characterized by a preference for Tier 3 and Tier 4 data centers, which offer superior redundancy and fault-tolerant functionalities, making them ideal for sectors such as BFSI, telecom, and media and entertainment. The adoption of hyperscale colocation is also on the rise, supported by government initiatives like the G-Cloud program, which is transforming ICT procurement in the public sector. The market's growth is further bolstered by the increasing number of businesses, particularly SMEs, which constitute a significant portion of the UK's business landscape.
The data center market in the UK is fragmented, with major players like Digital Realty Trust Inc., Equinix Inc., NTT Ltd, Rackspace Technology Inc., and Virtus Data Centres Properties Ltd holding substantial market shares. The market is poised for continued expansion, with numerous new data center projects underway, including significant developments in Buckinghamshire and West London. These projects are expected to enhance the country's data processing capabilities, aligning with the growing demand from e-commerce, media, and entertainment sectors. The strategic phase-out of 2G and 3G networks by 2033 is anticipated to further drive investments in 4G and 5G infrastructure, thereby increasing data traffic and necessitating more robust data center solutions.
United Kingdom Data Center Market Size - Table of Contents
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1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
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1.1 Hotspot
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1.1.1 London
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1.1.2 Rest of United Kingdom
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1.2 Data Center Size
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1.2.1 Large
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1.2.2 Massive
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1.2.3 Medium
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1.2.4 Mega
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1.2.5 Small
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1.3 Tier Type
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1.3.1 Tier 1 and 2
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1.3.2 Tier 3
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1.3.3 Tier 4
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1.4 Absorption
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1.4.1 Non-Utilized
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1.4.2 Utilized
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1.4.2.1 By Colocation Type
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1.4.2.1.1 Hyperscale
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1.4.2.1.2 Retail
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1.4.2.1.3 Wholesale
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1.4.2.2 By End User
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1.4.2.2.1 BFSI
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1.4.2.2.2 Cloud
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1.4.2.2.3 E-Commerce
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1.4.2.2.4 Government
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1.4.2.2.5 Manufacturing
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1.4.2.2.6 Media & Entertainment
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1.4.2.2.7 Telecom
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1.4.2.2.8 Other End User
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United Kingdom Data Center Market Size FAQs
What is the current United Kingdom Data Center Market size?
The United Kingdom Data Center Market is projected to register a CAGR of 10.49% during the forecast period (2024-2029).
Who are the key players in United Kingdom Data Center Market?
Digital Realty Trust Inc., Equinix Inc., NTT Ltd, Rackspace Technology Inc. and Virtus Data Centres Properties Ltd (STT GDC) are the major companies operating in the United Kingdom Data Center Market.
