United Kingdom Data Center Renovation Market Size, Share, and COVID-19 Impact Analysis, By Renovation Type (Mechanical Renovation, Electrical Renovation, and Infrastructure Renovation), By Renovation Goal (Improved Energy Efficiency, Increased Capacity and Density, and Modernization & Upgrading), and United Kingdom Data Center Renovation Market Insights, Industry Trend, Forecasts to 2035

United Kingdom Data Center Renovation Market Insights Forecasts to 2035

• The United Kingdom Data Center Renovation Market Size Was Estimated at USD 878.68 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 13.64% from 2025 to 2035
• The United Kingdom Data Center Renovation Market Size is Expected to Reach USD 3586.62 Million by 2035

According to a research report published by Spherical Insights and Consulting, The United Kingdom Data Center Renovation Market Size is anticipated to reach USD 3586.62 Million by 2035, growing at a CAGR of 13.64% from 2025 to 2035. The increasing need for modernizing outdated infrastructure, improving energy efficiency, implementing cutting-edge cooling technologies, and accommodating growing data workloads all contributes to the region's investment in remodeling and modernization projects.

Market Overview

The United Kingdom data center renovation market refers to the industry involves expanding, retrofitting, and updating current data center infrastructure to increase capacity, performance, and energy efficiency. By incorporating modern cooling systems, power management solutions, and modern networking technologies, this industry focuses on improving infrastructure. Through sustainable methods and improved resource utilization, renovations assist data centers handle the increasing needs of big data, cloud computing, and artificial intelligence applications while lowering operating costs and minimizing their environmental impact. The increasing need to modernize antiquated infrastructure in order to accommodate rising data traffic and modern technologies like AI and IoT. Investments in green remodeling solutions are encouraged by the growing need for data centers that are sustainable and energy-efficient.  Furthermore, the trend toward edge computing and government incentives for lowering carbon footprints provide up opportunities for creative infrastructure improvements that will improve data center performance, dependability, and scalability. The innovative cooling technologies such as modular infrastructure designs, AI-driven energy management systems, and liquid cooling.  These developments minimize operating costs and environmental impact in refurbished data centers while increasing energy efficiency, minimizing downtime, and enabling scalable upgrades to meet expanding data demands.

Report Coverage

This research report categorizes the market for the United Kingdom data center renovation 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 renovation 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 United Kingdom data center renovation market.

Driving Factors

The growing need for improved data processing skills in an environment of industry' swift digital change.  As cloud computing, artificial intelligence, and big data analytics become more widely used, it is necessary to upgrade current data centers in order to effectively manage increasing workloads.  Additionally, renovations using innovative cooling and power management technology are encouraged by the need to increase energy efficiency and lower operating costs.  Organizations are also encouraged to update their infrastructure with sustainable solutions by regulatory pressure to reduce carbon emissions. Additionally, to maintain dependability, security, and compliance with changing industry requirements, aged data center facilities have to be improved, which propels market expansion.

Restraining Factors

The high renovation costs, potential operational downtime during upgrades, and complex integration challenges with existing infrastructure. Additionally, strict regulatory compliance and cybersecurity concerns can delay projects, while limited skilled workforce availability hinders timely and efficient renovation implementation.

Market Segmentation

The United Kingdom Data Center Renovation Market share is classified into renovation type and renovation goal.

• The mechanical renovation segment accounted for the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period.  

The United Kingdom data center renovation market is segmented by renovation type into mechanical renovation, electrical renovation, and infrastructure renovation. Among these, the mechanical renovation segment accounted for the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. The segment growth can be attributed to increasing data center heat loads, growing demand for energy-efficient cooling systems, and developments in liquid and AI-driven cooling technologies that boost sustainable data center operations, lower expenses for operations, and enhance performance.

• The energy efficiency segment accounted for the largest revenue in 2024 and is expected to grow at a significant CAGR during the forecast period.  

The United Kingdom data center renovation market is segmented by renovation goal into improved energy efficiency, increased capacity and density, and modernization & upgrading. Among these, the energy efficiency segment accounted for the largest revenue in 2024 and is expected to grow at a significant CAGR during the forecast period. The segment growth is driven by increasing focus on using improved cooling, renewable energy integration, and intelligent energy management systems for cutting down on power usage, operational expenses, and environmental requirements.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United Kingdom data center renovation 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

• ABB
• Honeywell
• Cisco Systems
• Dell Technologies
• Lenovo
• Schneider Electric
• Microsoft
• Siemens
• IBM
• Google
• Emerson Electric
• Others.

Recent Developments:

• In July 2024, Iceotope launched the UK's first liquid cooling lab and data center facility in Sheffield, in collaboration with Efficiency IT. This facility supports the adoption of liquid cooling technologies, enhancing energy efficiency in data centers.

Key Target Audience

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

Market Segment

This study forecasts revenue at UK, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United Kingdom data center renovation market based on the below-mentioned segments:

United Kingdom Data Center Renovation Market, By Renovation Type

• Mechanical Renovation
• Electrical Renovation
• Infrastructure Renovation

United Kingdom Data Center Renovation Market, By Renovation Goal

• Improved Energy Efficiency
• Increased Capacity and Density
• Modernization & Upgrading