United Kingdom Data Centre Construction Market Size, Share, and COVID-19 Impact Analysis, By Type (Tier 1, Tier 2, Tier 3, and Tier 4), By Infrastructure (IT Infrastructure, Networking Equipment, Server, and Storage), and United Kingdom Data Centre Construction Market Insights, Industry Trend, Forecasts to 2035

United Kingdom Data Centre Construction Market Insights Forecasts to 2035

• The United Kingdom Data Centre Construction Market Size Was Estimated at USD 13,524.92 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 7.02% from 2025 to 2035
• The United Kingdom Data Centre Construction Market Size is Expected to Reach USD 28,525.84 Million by 2035

According to a research report published by Spherical Insights & Consulting, the United Kingdom Data Centre Construction Market is anticipated to reach USD 28,525.84 million by 2035, growing at a CAGR of 7.02% from 2025 to 2035. The increasing demand for cloud services, growing internet usage, 5G network expansion, an increase in AI and IoT applications, and an increase in hyperscale provider investments and government-supported digital infrastructure investments.

Market Overview

The United Kingdom data centre construction market refers to the industry involved with constructing buildings that host networking hardware, storage systems, servers, and other computing infrastructure.  These facilities facilitate data storage, cloud computing, and digital services.  Design, engineering, power and cooling systems, and physical security are all included in the market.  Increased data usage, cloud adoption, and connection technologies including 5G, IoT, and AI applications are what propel growth. The growing need for cloud services, digital transformation, and data storage across the industry.  Infrastructure needs are increased by the adoption of IoT, AI, and 5G network expansion. Sustainable data center construction is also supported by government programs that encourage green energy and smart cities. Furthermore, there are opportunities for sophisticated, energy-efficient, and scalable data center projects in both urban and regional locations due to the growing expenditures made by hyperscale and colocation providers.  AI integration for energy management, advanced cooling technologies including liquid cooling, and modular and prefabricated data center designs.  Efficiency, scalability, and environmental performance have been enhanced by the use of renewable energy sources, sophisticated monitoring systems, and sustainable building techniques.

Report Coverage

This research report categorizes the market for the United Kingdom data centre construction 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 centre construction 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 centre construction market.

Driving Factors

The rapid growth of cloud computing, the increasing usage of big data, and the Internet of Things have resulted in a tremendous expansion of the demand for data processing and storage infrastructure, and the emergence of digital services across industries. This requirement is accelerated even more by the development of 5G networks and AI technology. The industry is expanding as a result of government programs supporting energy-efficient infrastructure, smart cities, and digital transformation. Additionally, the need for scalable and secure IT infrastructures, together with the growing number of hyperscale and colocation facilities, is driving investment in new, innovative, and sustainable data center projects throughout the United Kingdom.

Restraining Factors

The expensive initial expenditure of funds, difficult regulatory clearances, and a shortage of suitable urban land. Furthermore, the timely development and extension of data center facilities may be hampered by growing energy costs, environmental concerns, and difficulties locating competent employees and sustainable materials.

Market Segmentation

The United Kingdom data centre construction market share is classified into  type and infrastructure.

• The tier 3 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 centre construction market is segmented by type into tier 1, tier 2, tier 3, and tier 4. Among these, the tier 3 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 their multiple power and cooling pathways, excellent uptime, and strong fault tolerance, they are the preferred choice for cloud service providers and large companies that require infrastructure that is scalable and reliable.

• The IT infrastructure 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 centre construction market is segmented by infrastructure into IT infrastructure, networking equipment, server, and storage. Among these, the IT infrastructure 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 government backing for digital infrastructure, increasing expenditures from hyperscale and colocation providers, rising data traffic from AI and IoT adoption, rapid 5G implementation, and increased demand for cloud computing.

Competitive Analysis:

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

• IBM Corporation
• Schneider Electric SE
• Fortis Construction Inc.
• Airedale International Air Conditioning
• Clune Construction Company LP
• Datacentre UK
• Castrol Limited
• Honeywell International Inc.
• Johnson Controls International PLC
• Arup Group
• Datadome Group
• Others.

Recent Developments:

• In September 2023, Waken launched a Sonic Electric toothbrush featuring patented "Precision-power" technology, offering multiple cleaning modes and long-term rechargeable batteries, catering to consumers seeking advanced oral hygiene tools

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 centre construction market based on the below-mentioned segments:

United Kingdom Data Centre Construction Market, By Type

• Tier 1
• Tier 2
• Tier 3
• Tier 4

United Kingdom Data Centre Construction Market, By Infrastructure

• IT Infrastructure
• Networking Equipment
• Server
• Storage