United Kingdom Data Center Market Report and Forecast 2024-2032

United Kingdom Data Center Market Outlook

The United Kingdom data center market size reached approximately USD 10.35 billion in 2023. The market is projected to grow at a CAGR of 5.1% between 2024 and 2032, reaching a value of around USD 16.17 billion by 2032.

Key Trends in the Market

A data center is a building, facility, or space dedicated within a building that is equipped with computer systems and components to create a large group of networked computer systems. This is used to store, manage, process, and distribute large amounts of data and information by various organisations and businesses.

• One of the primary factors aiding the United Kingdom data center market growth is the widespread adoption of cloud computing and the ongoing digital transformation initiatives across various sectors. Organisations are increasingly migrating their data and applications to cloud platforms to enhance their agility, scalability, and profitability.

• A major United Kingdom data center market trend is the implementation of several initiatives by the government of the United Kingdom to achieve carbon neutrality. In response, many data center operators have shifted their focus to renewable energy sources and adopted more sustainable practices to lower energy consumption and carbon emissions.

• The deployment of 5G technology is transforming the landscape of informatics technology infrastructure in the United Kingdom. 5G's faster data transfer speeds and low latency are expected to drive a surge in data consumption, propelling the United Kingdom data center market demand.

Market Analysis

Based on components, the market is bifurcated into solutions and services. The United Kingdom data center market segmentation, on the basis of type, includes colocation, hyperscale, and edge, among others. Based on enterprise size, the market is categorised into large enterprises and small and medium enterprises (SMEs). The market, based on end use, is divided into BFSI, IT and telecom, government, and energy and utilities, among others.

The comprehensive EMR report provides an in-depth assessment of the market based on Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the United Kingdom data center market, covering their competitive landscape and the latest developments like mergers, acquisitions, investments, and expansion plans.

• Alphabet Inc.

• Amazon.com Inc.

• IBM Corporation

• Microsoft Corporation

• Equinix, Inc.

• CyrusOne LLC

• Colt Group Holdings Limited

• NTT Ltd.

• Global Switch Limited

• Digital Realty Trust Inc.

• Ark Data Centers Limited

• VIRTUS Holdco Limited

• Others

Market Share by Type

According to the United Kingdom data center market analysis, hyperscale data centers have gained substantial popularity. A hyperscale data center is a type of data center facility designed to handle massive amounts of data and provide high-performance computing resources at an unprecedented scale. Leading tech companies in the country are continuously investing in the development of new hyperscale data centers, aiding the segment’s growth.

Market Share by End Use

The IT and telecom segment is anticipated to represent a significant portion of the United Kingdom data center market share in the coming years. As technology continues to evolve rapidly, data consumption rapidly increases, and storage needs from the IT sector rise, the demand for data center services is likely to surge during the forecast period.

Competitive Landscape

Alphabet Inc. is an American multinational company known for its significant presence in the technology sector. The company was founded in October 2015 when Google underwent a reorganisation. Google, along with numerous subsidiaries, now operates under Alphabet Inc. This conglomerate was established by Larry Page and Sergey Brin, the visionary founders of Google.

Amazon.com Inc. is the world's largest e-commerce company and a leading figure in cloud computing, artificial intelligence, digital streaming, and advertising. This American multinational company, founded in 1994 by Jeff Bezos, was started as an online bookstore, which later expanded to include a wide range of products, including electronics, clothing, home goods, and more.

IBM Corporation is a renowned American multinational technology company that boasts a rich history. Since its foundation back in 1911, IBM has been at the forefront of the technology sector, playing a pivotal role in shaping the course of computer and computing technology. In its early days, the company gained prominence for its innovative tabulating machines, punch card systems, and timekeeping solutions. These inventions found widespread application in various sectors, including government, finance, and business.

Other United Kingdom data center market players include Microsoft Corporation, Equinix, Inc., CyrusOne LLC, Colt Group Holdings Limited, NTT Ltd., Global Switch Limited, Digital Realty Trust Inc., Ark Data Centers Limited, and VIRTUS Holdco Limited, among others.

Key Highlights of the Report