The UK Data Center Market by Infrastructure (Hardware, Software, and Services), by Type (Enterprise Data Centers, and others), by Data Center Rating (Tier I, and others), by Size (Small Data Centers, and others), by Power Capacity (<0.01 GW, and Others), by Server Rack Density (<10kW, and others), by Data Center Redundancy (N+1, and others), by PUE Outlook (Less than 1.2, and others), by Design Outlook (Traditional, and Others), and Others - Opportunity Analysis and Industry Forecast, 2024–2030
Industry: ICT & Media | Publish Date: 03-Nov-2025 | No of Pages: 210 | No. of Tables: 166 | No. of Figures: 111 | 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.
Significant Expansion of UK Data Center Infrastructure to Meet Soaring Digital Demand
The UK data center market is undergoing a substantial expansion driven by escalating demand for high-performance computing and cloud services. With an increasing number of large-scale data center developments across London, the South East, and emerging regional hubs such as Manchester, Wales, and the North East, the sector is rapidly growing its overall capacity. This growth is fueled by the need to support AI workloads, hybrid cloud environments, and real-time analytics applications. The market is evolving to deliver resilient, scalable, and energy-efficient facilities capable of meeting the country’s rising digital infrastructure requirements.
Robust Investment in AI-Focused and High-Performance Computing Facilities Drives UK Data Center Development
Investment in AI-optimized data center infrastructure is a major catalyst for market growth in the UK. Private and institutional investors are committing billions to build next-generation facilities that can handle high-density workloads and intensive GPU processing demands. These developments not only focus on raw computing power but also incorporate advanced cooling technologies and energy management systems designed to support AI and machine learning applications. This wave of investment is reshaping the market landscape, ensuring the UK remains competitive in attracting cloud providers, technology firms, and AI enterprises.
Financial, Regulatory, and Energy Challenges Impact the UK Data Center Market Expansion
Despite its rapid growth, the UK data center sector faces significant hurdles related to upfront capital costs, regulatory compliance, and energy availability. The high cost of land, infrastructure, and specialized equipment can limit the entry of smaller operators and slow development timelines. Additionally, meeting stringent environmental regulations and the country’s net-zero carbon targets requires substantial investment in renewable energy and efficient cooling solutions. Grid constraints and delays in power connections pose further challenges, especially in high-demand regions, necessitating innovative approaches to energy sourcing and infrastructure planning.
Strategic Role of UK Data Centers in Supporting the Nation’s Digital Economy and Future Innovation
Beyond physical infrastructure, UK data centers play a critical role in underpinning the nation’s broader digital economy. They provide the backbone for essential services including cloud computing, AI research, fintech, and public sector digital initiatives. The integration of secure connectivity, regulatory compliance, and sustainability principles ensures that the sector not only supports current demand but also positions the UK for future technological advancements. Continued investment and innovation in the data center market are essential to maintaining the country’s competitiveness and enabling the digital transformation of industries nationwide.
Competitive Landscape
The key market players operating in the UK data center industry include Equinix Inc., Digital Realty Trust Inc., Amazon Web Services (AWS), Microsoft Azure, Google Cloud, NTT Global Data Centers, Global Switch Holdings Limited, CyrusOne Inc., Vantage Data Centers, Telehouse (KDDI), Iron Mountain Inc., Virtus Data Centres, Colt Data Centre Services, Rackspace Technology, IBM Cloud and others.
UK Data Center Market Key Segments
By Infrastructure
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Hardware
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IT Hardware
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Servers
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Storage Systems
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Networking Equipment
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-
Power Infrastructure Hardware
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Uninterruptible Power Supplies (UPS)
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Generators
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Automatic Transfer Switches
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Power Distribution Units (PDUs)
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Mechanical Infrastructure Hardware
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Computer-Room Air Conditioners (CRAC/CRA Units)
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Chillers
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Racks
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Cable Management Systems
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Safety & Security Hardware
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Fire Suppression Systems
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Physical Security Systems (CCTV, access controls)
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-
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Software
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DCIM & Monitoring
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Automation & Orchestration
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Backup & Disaster Recovery
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Security Software
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Virtualization Software
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Analytics & Reporting Software
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Other Software
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Services
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Planning & Professional Services
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Site & Building Design
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System/Infrastructure Engineering
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Professional Advisory (compliance, energy audits)
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Integration & Deployment Services
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Electrical & Mechanical Installation
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Commissioning & Acceptance Testing
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Operation & Support Services
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Preventive & Corrective Maintenance
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Facilities Management / Remote Monitoring
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Support Services (helpdesk, onsite SLA support)
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Hosting & Managed Services
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Colocation & Cloud Hosting Services
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Virtual/Private Hosting Platforms
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By Type
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Enterprise Data Centers
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Colocation Data Centers
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Cloud Data Centers
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Hyperscale Data Centers
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Edge Data Centers
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Micro Data Centers
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Others
By Data Center Rating
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Tier I
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Tier II
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Tier III
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Tier IV
By Size
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Small Data Centers
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Med-sized Data Centers
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Large Data Centers
By Power Capacity
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<0.01 GW (Small)
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0.01-0.05 GW (Medium)
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0.05-0.1 GW (Large)
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0.1-0.5 GW (Hyperscale)
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>0.5 GW (Mega-campus)
By Server Rack Density
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<10kW
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10-19kW
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20-29kW
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30-39kW
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40-49kW
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>50kW
By Data Center Redundancy
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N (No Redundancy)
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N+1 (Single-fault tolerant)
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N+2 (Dual-fault tolerant)
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2N (Full duplication)
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2N+1 (Concurrently maintainable + extra spare)
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3N/2N+2 (Multi-backup fault tolerant)
By PUE Outlook
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Less than 1.2
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1.2 - 1.5
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1.5 - 2.0
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Greater than 2.0
By Design Outlook
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Traditional
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Containerized
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Modular
By End User
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Cloud Service Provider
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Technology Provider
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Telecom
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Healthcare
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BFSI
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Retail & E-commerce
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Entertainment & Media
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Government
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Energy
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Others
Key Players
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Equinix Inc.
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Digital Realty Trust Inc.
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Amazon Web Services (AWS)
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Microsoft Azure
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Google Cloud
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NTT Global Data Centers
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Global Switch Holdings Limited
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CyrusOne Inc.
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Vantage Data Centers
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Telehouse (KDDI)
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Iron Mountain Inc.
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Virtus Data Centres
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Colt Data Centre Services
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Rackspace Technology
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IBM Cloud
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 |
15 |
|
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. |
About the Author
Jayanta Das is an industry analyst and writer with a keen focus on emerging technologies and sustainable business practices. With a background in engineering and market research, he brings analytical depth to topics like renewable energy, green manufacturing, and industrial transformation. Jayanta is passionate about translating complex data into actionable insights for businesses navigating the shift toward eco-conscious operations.
About the Reviewer
Supradip Baul is an accomplished business consultant and strategist with over a decade of rich experience in market intelligence, strategy, technology and business transformation. His work has included rigorous qualitative and quantitative analysis across multiple industries, helping clients shape investment decisions and long-term roadmaps. Earlier in his career, he was associated with Gartner, where he contributed to industry-leading reports and market share analyses. He has worked with leading global companies and holds an MBA with a dual specialization in Marketing and Finance.
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