United Kingdom Data Center Market Size, Share, and COVID-19 Impact Analysis, By Component (Hardware, Software, and Services), By Type (On-Premise, Hyperscale, HPC, Colocation, and Edge), and United Kingdom Data Center Market Insights, Industry Trend, Forecasts to 2033

United Kingdom Data Center Market Insights Forecasts to 2033

• The United Kingdom Data Center Market Size Was Valued at USD 10.34 Billion in 2023.
• The United Kingdom Data Center Market Size is Growing at a CAGR of 8.16% during the forecast period 2023 to 2033
• The United Kingdom Data Center Market Size is Anticipated to reach USD 22.65 Billion by 2033

The United Kingdom Data Center Market Size is Anticipated to Exceed USD 22.65 Billion by 2033, Growing at a CAGR of 8.16% from 2023 to 2033. The rising demand for energy-efficient and sustainable data center operation, the rise in data traffic, and the demand for better cooling & space optimization solutions are driving the growth of the data center market in the UK.     

Market Overview

The data center market refers to the industry involving the supply and management of physical infrastructure needed for hosting and operating IT systems. The data center is a physical facility designed for housing computer systems and associated components, such as telecommunications and storage, to collect, process, and store data. The continuous innovation in designs, operational practices, and technologies, including cloud computing and edge computing in order to meet the evolving needs of organizations and businesses across industries, is propelling the data center market growth. Further, the mounting demand for computational power in data centers contributes to driving the data center market. In addition, the emphasis on the adoption of hybrid and multi-cloud strategies is further escalating the growth opportunities in the data center market.

Report Coverage

This research report categorizes the market for the UK data center market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United Kingdom data center market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the UK data center market.

Driving Factors

The rising demand for energy-efficient and sustainable data center operations, owing to the increasing data demand, the rise of AI, and the need to meet sustainability goals, is driving the market demand. The rise in data traffic, which is driven by the adoption of 5G networks and demand for data-intensive services, is contributing to propelling the data center market. The demand for better cooling & space optimization solutions, owing to the global temperatures, urbanization, and economic development, is promoting the data center market.

Restraining Factors

The increased initial cost, complex implementation, cybersecurity concerns, and environmental impact are hampering the data center market.

Market Segmentation

The United Kingdom Data Center Market share is classified into component and type.

• The hardware segment dominated the market with the largest market share in 2023 and is expected to grow at a significant CAGR during the projected period.

The United Kingdom data center market is segmented by component into hardware, software, and services. Among these, the hardware segment dominated the market with the largest market share in 2023 and is expected to grow at a significant CAGR during the projected period. The increasing data generation, cloud adoption, and technological advancements are all factors that contribute to propelling the market in the hardware segment.

• The on-premise segment dominated the market with the largest revenue share in 2023 and is expected to grow at a significant CAGR during the projected period.

The United Kingdom data center market is segmented by type into on-premise, hyperscale, HPC, colocation, and edge. Among these, the on-premise segment dominated the market with the largest revenue share in 2023 and is expected to grow at a significant CAGR during the projected period. It includes housing of computing infrastructure like servers, storage, and networking equipment in a physical location which is owned and operated by the company.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the U.K. data center market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• CyrusOne Inc.
• Digital Realty Trust Inc.
• Equinix Inc.
• Global Switch Holdings Limited
• Kao Data Ltd
• NTT Ltd
• Rackspace Technology Inc.
• Telehouse (KDDI Corporation)
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In October 2022, CyrusOne has proposed a new data center in Iver Heath, Buckinghamshire, UK. According to a filing with Buckinghamshire council, the ‘Iver Heath Data Park’ project would redevelop the Shannon Group headquarters, located on Dromenagh Farm on Sevenhills Road, to provide a new hyperscale data center, training center, and associated infrastructure.”  

• In August 2022, Colt is planning a new data center in Hayes, West London, that would more than triple its existing footprint in the UK capital.

Market Segment

This study forecasts revenue at U.K., regional, and country levels from 2020 to 2033. Spherical Insights has segmented the United Kingdom Data Center Market based on the below-mentioned segments:

UK Data Center Market, By Component

• Hardware
• Software
• Services

UK Data Center Market, By Type

• On-Premise
• Hyperscale
• HPC
• Colocation
• Edge