United Kingdom Data Center market
is growing owning to increasing
adoption of data center in banking, financial services, and information
technology and telecom along with rising government investment to provide the
physical data center space. The increasing risks of hacking and cybersecurity concerns across various end-use industries have
led to an increased focus on data center to overcome the situation and secure
the data. Moreover, 5G infrastructure investments in edge data centers have
further boosted the demand for data center. The widespread adoption of 5G
services and the growth of smart cities in the United Kingdom will increase the
country's capacity for data centres while also boosting data traffic and driving
demand for new data centers. Many enterprises are adopting data center as a cost-effective
solution. Moreover, the market is anticipated to be driven by rising
demand for digital age networking, which enables businesses to progress toward
digital transformation and produce new business outcomes by utilizing new
digital age technologies such as the Internet of Things (IoT), cloud computing,
and Artificial Intelligence (AI) and thus relying on different software are
driving the market. Additionally, the rise in business use of high-end cloud computing in
developing regions promotes the development of the data center market of United
Kingdom throughout the forecast period.
A data center is a
location that centralizes an organization's IT operations and hardware for the
purposes of storing, processing, and distributing data and applications. It offers reliable storage without the
glitches of portable technology, eliminating a portion of losses, reduce costs,
manage data, and protect upcoming technology investments. Data centers are a
crucial component of every organization, since they are created to support corporate
applications and offer services such as productivity applications, high-volume
e-commerce transactions, data storage, management, backup, and recovery. Many businesses opt to establish their
own on-site data centers since many believe there can be better control
information security and adhere to laws such as the European Union General Data
Protection Regulation (GDPR). Edge data centers can assist reduce latency for
real-time, data-intensive workloads including big data analytics, Artificial Intelligence
(AI), and content delivery apps, enhancing overall application performance and
user experience. For enterprises that lack the space, personnel, or experience
to deploy and operate all or part of their IT infrastructure on-site, managed
data centers and colocation facilities are choices.
The
Increased Investment in The Country
The increasing investment in the United
Kingdom by the government and the private entities are further propelling the
high adoption rate for data center and related infrastructure in the recent
years. In addition, despite the Brexit uncertainty, several factors make
digital transformation and technology investment in the United Kingdom
promising. Cities such as Manchester are one of the media and technological
industry hubs in Europe that is expanding the quickest, whereas London has long
been the world's financial hub, therefore the data centers prominent vendors
are continuously investing on setting up new data centers in the regions.
Companies such as Equinix, Inc. are investing around USD 181.017 million by
expanding its two international business exchange sites by opening new data
centers facilities. Due to expanded infrastructure and more complicated
networking, server, storage, and other equipment, data centers are becoming
more and more expensive, necessitating effective data center solutions and
services. Although, the United Kingdom market has the most developed data
center infrastructures. The requirement for the data centers has exceeded with
the rapid expansion of technologies in the country. For instance, according
to the Digital Connectivity Forum (DCF), a leading advisory group to United
Kingdom Government on connectivity had estimated the requirement of around USD
28.85 billion investment in the 5G infrastructure by 2030. This in turn is
advancing the country along with upfront
of prominent service providers to invest more on such data storage facilities
and attracting the third-party investments. Thus, growing investment in the
country has anticipated the demand of data center in the United Kingdom market.
5G Will Increase Investments in Edge Data
Centers
Edge
computing is becoming more popular in the market just like 5G has been massively ramped
up in the last couple of years, as a result of the rising use of connected
devices among consumers and organizations. In many Tier II and Tier III cities
as well as in rural areas, this has resulted in a significant demand for
higher-bandwidth internet, necessitating the construction of data centers to
process information on comparison with big cities. Edge data centers will
develop a decentralized data center architecture in which numerous edge data
centers are linked to a single hyperscale facility. Over 54% of United Kingdom
cities have 5G coverage as of May 2022, with significant market participants
including EE Mobile, Three Mobile, and O2 Mobile. In 370 towns, United Kingdom
telecommunications are offering 5G connection. EE mobile is second, while Vodaphone
is third. Government associations such as Department for Digital, Culture,
Media & Sport in United Kingdom including top universities such as University
of York, University of Bristol and University of Surrey has teamed up for the
deployment of next generation 5G and 6G wireless technology and telecoms
security. Throughout United Kingdom, these institutions will team up with large
enterprises such as Nokia, Ericsson, and Samsung to design and build networks
of the future such as 6G. Moreover, these companies have partnered to develop
innovative 5G use cases and will bolster the United Kingdom’s status as a
global leader in telecoms research. Furthermore, the companies are extending
their 5G coverage to new locations across the region which necessitates the
construction of the physical infrastructure to facilitate the significant
degree of data sharing. Hence,
increasing 5G investment are attributing the growth of United Kingdom Data
Center market.
Growing
Use of Renewable Energy
Many data center service providers have
invested in clean, renewable energy sources to run their existing and future
facilities as a result of the rising data center power usage and the desire to
reduce carbon footprint. The two main energy sources in the United Kingdom are
oil and natural gas, both of which have a negative influence on the
environment. On the contrary, 38.2% of the energy generation is done through
renewable sources such as wind power, solar power, hydropower, and biomass
energy. In addition, 20GW of electricity was produced by wind contributing to
70% of electricity generation in November 2022. Moreover, Domestic Renewable
Heat Incentive (DRHI) and Green Gas Support Scheme and Green Gas Levy both call
for the National Renewable Action Plans (NREAPs) to be implemented in order to
fully use the country's potential for renewable energy. Recently, United Kingdom
has received an investment of more than USD 38.38 million to produce renewable
energy by developing cutting-edge innovative new energy storage technologies
such as thermal batteries and liquid flow batteries. Furthermore, government
initiative toward proliferating the large-scale projects to adopt and support
renewable energy such as the Renewable Obligation (RO) initiative was set by
the Department for Business, Energy, and Industrial Strategy (BEIS). Therefore,
growing use of renewable energy has led to the growth of data center in the United
Kingdom market.
Recent Development
On Feb 06, 2023, Datum Group, a United Kingdom data center firm announced the addition of two new building to existing sites at Farnborough and Manchester in 2024. The two new facilities (FRN2 and MCR2) will be established on existing data centers, where FRN2 will provide capacity for 600 racks on the ground floor and MCR2 will offer more than 1000 new server racks.
On Oct 19, 2022, Lonos, a hosting service provider firm announced the launch of new United Kingdom data centers in Worcester, Worcestershire. The new facilities with the investment of around USD 23.6 million at the Worcester six business park comprises of 30,730 sq ft (2,850 sqm) data center and 13,000 sq ft (1,200 sqm) of ancillary offices.
On Nov 24, 2022, Google United Kingdom, announced the signed power purchase agreement (PPA) with Engie 100 MW of offshore wind energy. The new agreement will operate with data centers with around 90% of renewable carbon-free energy (CFE) in 2025.
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Market Segmentation
United Kingdom Data Center Market is divided into solution, type,
end-user, and region. Based on solution, the market is further divided into IT infrastructure,
general infrastructure, electrical infrastructure, mechanical infrastructure,
and others. Based on type, the market is further split into corporate and web hosting.
Based on end user Industry, the market is further divided into information
technology & telecom, government, BFSI, healthcare and others.
Market Player
Major
market players in the United Kingdom Data Center market are Ark Data Centers Limited, China Mobile
International (UK) Limited, Digital Realty Trust, Inc., CyrusOne UK Limited,
Vantage Data Centers (UK) Limited, NTT Global Data Centers EMEA UK Ltd.,
Interxion Holding NV, ST Telemedia Global Data Centres (VIRTUS Data Centres),
Echelon Data Center, and Equinix (UK) Limited.
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Attribute
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Details
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Base Year
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2022
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Historic Data
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2018 –
2021
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Estimated Year
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2023
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Forecast Period
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2024
– 2028
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Quantitative Units
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Revenue in USD Million and CAGR for 2018-2022 and 2024-2028
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Report coverage
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Revenue
forecast, company share, growth factors, and trends
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Segments covered
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By Solution
By Type
By
End-User
By
Region
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Country scope
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United
Kingdom
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Region scope
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Scotland, Southeast, London, Southwest, East Anglia, Yorkshire
& Humberside, East Midlands
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Key companies profiled
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Ark Data Centers Limited, China Mobile International (UK) Limited,
Digital Realty Trust, Inc., CyrusOne UK Limited, Vantage Data Centers (UK) Limited,
NTT Global Data Centers EMEA UK Ltd., Interxion Holding NV, ST Telemedia
Global Data Centres (VIRTUS Data Centres), Echelon Data Center, and Equinix (UK)
Limited.
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Customization scope
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10% free report customization with purchase. Addition or
alteration to country, regional & segment scope.
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Pricing and purchase options
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Avail
customized purchase options to meet your exact research needs. Explore purchase options
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Delivery Format
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PDF
and Excel through Email (We can also provide the editable version of the
report in PPT/Word format on special request)
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Report Scope:
In this report, the United Kingdom Data Center market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
·
United Kingdom Data Center Market,
By Solution:
o IT Infrastructure
o General Infrastructure
o Electrical Infrastructure
o Mechanical Infrastructure
o Others
·
United Kingdom Data Center Market,
By Type:
o Corporate
o Web Hosting
·
United Kingdom Data Center Market, By End-User:
o Information
Technology & Telecom
o Government
o BFSI
o Healthcare
o Others
·
United Kingdom Data Center Market, By Region:
o Scotland
o Southeast
o London
o Southwest
o East Anglia
o Yorkshire & Humberside
o East Midlands
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the United Kingdom Data Center market.
Available Customizations:
With the
given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).
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