Dublin, Nov. 16, 2023 (GLOBE NEWSWIRE) -- The "United Kingdom Data Center Market Competition Forecast & Opportunities, 2028" report has been added to ResearchAndMarkets.com's offering.
United Kingdom Data Center market is projected to reach a value of $13.95 billion by 2028 from $11.64 billion in 2022, growing at a CAGR of 3%
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.
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.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 85 |
| Forecast Period | 2022 - 2028 |
| Estimated Market Value (USD) in 2022 | $11.64 Billion |
| Forecasted Market Value (USD) by 2028 | $13.95 Billion |
| Compound Annual Growth Rate | 3.0% |
| Regions Covered | United Kingdom |
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the United Kingdom Data Center market.
- Ark Data Centres 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
- Equinix (UK) Limited
Report Scope:
United Kingdom Data Center Market, By Solution:
- IT Infrastructure
- General Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- Others
United Kingdom Data Center Market, By Type:
- Corporate
- Web Hosting
United Kingdom Data Center Market, By End-User:
- Information Technology & Telecom
- Government
- BFSI
- Healthcare
- Others
United Kingdom Data Center Market, By Region:
- Scotland
- Southeast
- London
- Southwest
- East Anglia
- Yorkshire & Humberside
- East Midlands
For more information about this report visit https://www.researchandmarkets.com/r/eo1tp5
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