U.K. Data Center Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

Key Highlights

The U.K. data center market was valued at USD 7,921.6 million in 2023, and it will rise to USD 9,324.6 million, growing at more than 2.2% compound annual growth rate, by 2030.

The widespread acceptance of cloud-based solutions as well as services in this nation is a major factor driving the growth of the industry.

Cloud-based solutions and services provide different advantages to establishments, including ample storage, data security, access to different computing resources, and energy & cost savings, at a low price.

As per a government agency, the U.K. is a major market for cloud solutions and services in Europe, with revenue from public cloud services amounting to over USD 10 billion in 2022.

The use of renewable sources of energy in power data centers is a key trend being observed in this industry.

As per an article by the International Energy Agency (IEA), the U.K. aims to reduce its economy-wide greenhouse gas releases by as a minimum 68% by 2030 from 1990 levels and attain net-zero levels by 2050.

Data centers, precisely, are likely to become carbon-neutral by almost 2030.

The consciousness about the utilization of renewable sources of energy to decrease carbon emissions and have a sustainable lifestyle has been rising swiftly.

Key Insights

The IT infrastructure category, in terms of revenue, accounted for the larger share of the industry in 2023, of approximately 70%, and it is likely to continue this trend during this decade.

This is mainly because the IT Infrastructure serves as the pillar of these facilities; thus, significant expenses go into obtaining it.

The co-location type will be the largest contributor to the industry in 2030, with approximately 45% share.

This is mainly because of the flexibility and cost-effectiveness offered by these data centers to shift to higher bandwidths, which allows owners to meet the requirement for higher traffic without constantly making capital expenses.

As spikes in data come from numerous users in these facilities over time, bandwidth prices are significantly decreased, and therefore, they have a greater rate of acceptance.

The IT & telecom category will lead the industry in 2030, with a 35% share. This can be mainly because of the constant deployment of advanced applications and software in the IT service sector and the launch of some startups in this country.

The telecom sector has observed an increasing number of mobile internet users, which has formed an enormous need for data storage over the years.

The arrival of technologies like IoT 5G is likely to drive development in the IT & telecom sector, hence generating significant data volumes and, sequentially, driving the market in the years to come.

The healthcare category will propel at the highest compound annual growth rate, of 3.0%, in the years to come. This can be mainly because of the growing importance of data storage in the healthcare sector.

The U.K. data center industry is highly fragmented, because of the existence of many companies. The constant arrival of new players is impacting the new and established service providers.