UK Data Center Market - Size, Share, Growth, Trends, and Forecast to 2030

The UK data center market is one of the most attractive on the continent, anchored by London, which is Europe's largest data center hub. Its strategic location and good quality of digital infrastructure, including excellent communication networks, make it an optimal setting for incorporating data center activities.

Increasing demand emanating from various industries, be it cloud computing, finance, or artificial intelligence, along with supportive government policies, adds a further fillip to its growth. This development places the UK at the core of the global digital economy.

Drivers

The UK Government's policies are driving the data center market as they have positioned it as a critical element of the nation’s infrastructure strategy, bolstering its growth and resilience. The UK officially classified data centers—encompassing both physical facilities and cloud operators—as Critical National Infrastructure (CNI) in September 2024.

This enables the government to respond effectively to any scenarios that may disrupt the nation’s economy, including cyber countermeasures, natural disasters, and IT outages. This is the first CNI designation in almost a decade since the space and defense sectors gained the same status in 2015.

Moreover, in the summer, the UK Government has introduced the Cyber Security and Resilience Bill to improve the cyber capability of the nation. The bill mandates that essential infrastructure providers to protect their supply chains from attacks. The measures are in tandem with the UK government’s strategy to protect the country’s digital backbone, which is used to boost the confidence of the UK data center market.

Additionally, as part of a wider campaign to get the country more connected, the UK Government is paying special attention to the rollout of 5G and fiber optic networks. It has launched the Open Networks Programme, an investment of nearly $400 million into the diversification and expansion of the country’s current 5G and 4G networks. Moreover, the $6.6 billion Project Gigabit continues to help connect schools, homes and workplaces in more rural areas.

Restraints

Energy availability and sustainability are significant concerns. Some of the data center hubs in the UK, particularly around London, face significant constraints regarding energy access and grid capacity, as noted by companies such as Digital Realty.This, thereby limiting growth potential, makes it imperative for energy sourcing to innovate into renewables or hybrid models integrated with decentralized energy solutions.

Additionally, 80% of the data center power in the UK comes from the M25 region. This over-reliance on West London and Slough, where most data centers are located, creates a geographic bottleneck around London.

Greater Manchester is primed and prepared to become the next home for these facilities as it offers unique connectivity opportunities; it also requires new infrastructure to support its rapidly expanding economy and landscape as a tech haven.

Market Segmentation

The global data center market can be segmented based on the following criteria:

By Type:

• Hyperscale Data centers: These are large-scale facilities typically used by cloud providers like Amazon, Google, and Microsoft to handle massive amounts of data. Hyperscale data centers offer superior scalability and cost-efficiency, and their demand is growing rapidly with the rise of cloud services.
• Colocation Data centers: Colocation facilities allow multiple organizations to lease space, equipment, and bandwidth, sharing operational costs. These data centers are favored by businesses that do not want to manage their own infrastructure.
• Enterprise Data centers: These are privately owned facilities that support individual businesses' IT needs. Despite the growth of cloud and colocation services, many enterprises continue to maintain on-premises data centers for reasons related to security and control.
• Edge Data centers: Designed to process data closer to the source, edge data centers are increasingly important in supporting low-latency applications like autonomous vehicles and IoT devices.

Recent Trends and Developments

• As of November 2024, UK's National Health Service (NHS) England CIO John Quinn has urged NHS trusts to stop investing in data centers and move to the cloud.
• As of November 2024, Vodafone Group has stated that its proposed merger deals in both the UK and Italy remain on track to be completed soon, as the carrier posted mixed results for the first financial half of the year.
• Segro CEO David Sleath stated in October 2024 that investment within the UK data center market is being hampered by prolonged delays in securing electricity connections.
• As of October, an 80MW data center planned for the London Borough of Newham has been given the go-ahead in the UK.

The new report from Blackridge Research on the United Kingdom data center market provides comprehensive qualitative and quantitative analyses along with a deep insight into the current and future of the market.

What Do We Cover in the Report?

Data Center Market Drivers & Restraints

The study covers all the major underlying market dynamics that help the market develop and grow, as well as the factors that constrain the United Kingdom’s market growth.

The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.

Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and will function as a guide for you to analyze the degree of impact.

Data Center Market Analysis

This report discusses the market overview, the latest updates, critical commercial developments and structural trends, and government policies and regulations.

Data Center Market Size and Demand Forecast

The report provides the UK data center market size and demand forecast until 2030, including year-on-year (YoY) growth rates and CAGR.

Data Center Industry Analysis

The report examines the critical elements of the data center supply chain, its structure, and the participants.

The report uses the PESTEL framework to assess the data center industry's competition and profitability.

Data Center Market Segmentation & Forecast

The report dissects the United Kingdom data center market into various segments based on type (Hyperscale Data Centers, Colocation Data Centers, Enterprise Data Centers and Edge Data Centers) and industry (IT and Telecom, BFSI, Healthcare, Government, Retail and E-commerce)

A detailed summary of the current scenario, recent developments, and market outlook will be provided for each market segment.

Further, data center market share, size, and demand forecasts will be presented, along with various drivers and barriers for individual market segments.

Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for bespoke market segmentation to better align the research report with your requirements.

Key Company Profiles

This report presents detailed profiles of key companies in the data center industry, such as Digital Realty, Equinix, Oracle, Amazon Web Services (AWS), Google Cloud, Ark Data Center, Microsoft, Kao Data etc. In general, each company profile includes an overview of the company, relevant products and services, a financial overview, and recent developments.

Competitive Landscape

The report provides a comprehensive list of notable companies in the market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements related to the data center project.

The study also discusses the strategies adopted by leading data center and AI companies.

Executive Summary

The Executive Summary will be packed with charts, infographics, and forecasts. This chapter summarizes the report's findings crisply and clearly.

The report begins with an executive summary chapter and ends with conclusions and recommendations.

This product will be delivered within 5-7 business days.