The UK Data Center Market by Type (Colocation, Hyperscale, Edge, and Others), by Deployment Model (On-premise, Cloud, and Hybrid), by Enterprise Size (Large Enterprise and Small and Medium Size Enterprise), and by End User (BFSI, IT and Telecom, Government, Energy and Utilities, and Other End Users)–Opportunity Analysis and Industry Forecast, 2024–2030
Industry: ICT & Media | Publish Date: 05-Nov-2024 | No of Pages: 110 | No. of Tables: 78 | No. of Figures: 43 | Format: PDF | Report Code : IC2424
UK Data Center Market Overview
The UK Data Center Market size was valued at USD 7.89 billion in 2023, and is predicted to reach USD 14.43 billion by 2030, at a CAGR of 9.0% from 2024 to 2030. The data center market, also known as network infrastructure, encompasses the entire lifecycle of specialized infrastructure dedicated to hosting computing systems, including planning, construction, operation, and maintenance. It comprises a range of components such as servers, storage systems, and networking gear, offering services such as cloud computing and connectivity solutions. Currently, the industry is experiencing widespread adoption of cloud services, coupled with the rise of edge computing to reduce latency.
Key trends include a focus on sustainability, heightened concerns about cybersecurity, the integration of hybrid and multi-cloud approaches, and the impact of 5G networks. These trends highlight the industry's adaptation to the increasing demand for scalable, efficient, and secure data processing and storage solutions amid the era of digital transformation. According to the United States International Trade Commission, the market for data processing and storage is expected to grow from USD 56 billion in 2020 to USD 90 billion by 2025.
Expanding Data Center Infrastructure Boosts the UK Data Center Market Growth
The UK data center market is a key player within Western Europe, boasting 512 facilities that cover 5,793,777 square feet and a power capacity of 1,139 megawatts. Major providers such as Lumen Technologies and Equinix dominate the landscape, offering robust infrastructure and services.
In addition to the existing facilities, the market landscape in the UK is witnessing substantial growth, with 11 new data centers currently under construction. This surge in construction activities not only reflects ongoing expansion efforts within the sector but also signifies significant investment pouring into the industry.
The proliferation of these new network infrastructure underscores the escalating demand for advanced data processing and storage solutions, reaffirming the UK's strategic significance in the global market.
As businesses continue to digitize operations and leverage data-driven insights, the need for robust and scalable infrastructure becomes paramount, further solidifying the UK's position as a key player in meeting these evolving market demands.
This expansion also presents lucrative opportunities for infrastructure providers and stakeholders to capitalize on the country's burgeoning digital economy, fostering innovation and driving economic growth in the process.
Investments in AI is Fueling the Growth of the UK Data Center Market
The surge in investments in artificial intelligence (AI) presents significant growth opportunities within the UK's industry landscape. Microsoft's recent announcement of a USD 3.16 billion (£2.5 billion) investment to amplify its AI data center presence in the UK underscores this trend. With expansions slated for London and Wales, this initiative aims to double the country's AI infrastructure capacity by introducing over 20,000 advanced Graphics Processing Units (GPUs) by 2026.
Beyond merely bolstering computational capabilities, Microsoft's commitment extends to training over one million individuals for the burgeoning AI economy. This multifaceted investment not only solidifies the UK's position as a leader in AI safety and innovation but also underscores its proactive stance in cultivating a skilled workforce adept in AI technologies.
Consequently, these strategic investments not only fortify the network infrastructure market but also position the UK at the forefront of AI technology and education, propelling its competitive edge in the global digital landscape.
High Initial Investment Hinders the Market Growth
The data center market grapples with significant challenges, chiefly stemming from the high initial investment and stringent environmental regulations. Establishing and maintaining network infrastructure demands substantial upfront financial commitments, posing barriers for smaller enterprises and startups. Moreover, continuous investment in energy-efficient technologies is necessary to ensure ongoing compliance with environmental standards hinders the overall UK data center market growth.
Integration of Edge Computing Presents Lucrative Opportunity for Market Expansion
The integration of edge computing into market operations presents compelling prospects for industry growth. By minimizing latency and enabling real-time processing, edge computing supports applications such as the Internet of Things (IoT) and Augmented Reality (AR), thereby alleviating the burden on centralized cloud data centers while offering scalability and flexibility.
This decentralized approach not only enhances security by processing sensitive data locally but also aligns with evolving digital landscapes, fostering diverse opportunities for network infrastructure providers.
Recent investments in startups such as Armada underscore the escalating interest in edge computing solutions, signaling a concerted effort to address connectivity challenges and bridge the digital divide.
Competitive Landscape
The key market players operating in the UK data center industry include China Telecom, Equinix, Digital Realty, Zenlayer, Amazon Web Services (AWS), 365 Data Centers, MOD Mission Critical (MOD), DataBank, IBM Cloud, Cogent Communications and others.
UK Data Center Market Key Segments
By Type
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Colocation
-
Hyperscale
-
Edge
-
Others
By Deployment Model
-
On-Premises
-
Cloud
-
Hybrid
By Enterprise Size
-
Large Enterprise
-
Small and Medium Size Enterprise
By End User
-
BFSI
-
IT and Telecom
-
Government
-
Energy and Utilities
-
Other End Users
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2023 |
USD 7.89 Billion |
|
Revenue Forecast in 2030 |
USD 14.43 Billion |
|
Growth Rate |
CAGR of 9.0% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
|
|
Companies Profiled |
10 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
KEY PLAYERS
-
China Telecom
-
Equinix
-
Digital Realty
-
Zenlayer
-
Amazon Web Services (AWS)
-
365 Data Centers
-
MOD Mission Critical (MOD)
-
DataBank
-
IBM Cloud
-
Cogent Communications
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