UK Data Centre Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The United Kingdom Data Center Market size is expected to grow from USD 14.64 billion in 2023 to USD 18.73 billion by 2028, at a CAGR of 5.05% during the forecast period (2023-2028).

Key Highlights

• IT Load Capacity: The IT load capacity of the UK data center market may grow steadily and reach 3609.68 MW by 2029.
• Raised Floor Space: The country's total raised floor area is expected to reach 17.79 million sq. ft by 2029.
• Installed Racks: 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.
• DC Facilities: The United Kingdom has superior cyber security, and London is one of Europe's largest data center markets. The country 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 fiber connectivity.
• Leading Market Player: In 2022, Digital Realty Trust Inc. held a market share of 14.84%, with an operational capacity of 227.9 MW. ServiceFabric, a global interconnectivity solution and orchestration platform, provides an on-demand suite of services supporting the digital transformation and data-centric needs of businesses.

UK Data Centre Market Trends

Tier 3 is the largest Tier Type

• 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.

UK Data Centre Industry Overview

The United Kingdom Data Center Market is moderately consolidated, with the top five companies occupying 49.72%. The major players in this market are Colt Technology Services, CyrusOne Inc., Digital Realty Trust, Inc., Equinix, Inc. and Virtus Data Centres Properties Ltd (ST Telemedia Global Data Centres) (sorted alphabetically).

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• The market estimate (ME) sheet in Excel format
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