United Kingdom Data Center Construction Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 5.05 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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United Kingdom Data Center Construction Market Analysis
The United Kingdom data center construction market is projected to register a CAGR of 5.05%.
- The upcoming IT load capacity of the United Kindom data center construction market is expected to reach 3,609.7 MW by 2029.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by 6.3 million sq. ft by 2029.
- The country's total number of racks to be installed is expected to reach 316,056 units by 2029. London is projected to house the maximum number of racks by 2029.
- There are close to 60 submarine cable systems connecting the United Kingdom to the globe, and many are under construction. One such submarine cable, estimated to be built by the end of 2023, is 2Africa, which stretches over 45,000 Kilometers spread across Asia, the Middle East, and Africa with the United Kingdom.
United Kingdom Data Center Construction Market Trends
IT and Telecom to have significant market share
- The UK cloud market operated at an IT load capacity of 199.05 MW in 2022 and is expected to grow from 246.46 MW in 2023 to 577.91 MW in 2029, registering a CAGR of 15.26% during the forecast period. The government industry is expected to grow from 59.62 MW in 2023 to 145.85 MW in 2029, registering a CAGR of 16.21%.
- Cloud and telecom had the highest market shares in the market, with 20.3% and 17.9% market shares, respectively, in 2023. The segments are expected to witness stable growth, accounting for market shares of 20.1% and 20%, respectively, in 2029.
- Cloud adoption among UK enterprises is over 50%. The effective use of data can create GBP 66 billion of new business and innovation opportunities in the United Kingdom, yet studies suggest that companies only analyze 12% of the data generated. In March 2022, Amazon Web Service announced an investment of GBP 1.8 billion (USD 2.47 billion) in the UK over the next two years in the building and operating data centers, further contributing to growth during the forecast period.
- The UK government announced its new digital strategy, promising to deliver over GBP 1 billion of savings by 2025 with significant improvements in online public services. A GBP 90 million budget was allocated in 2022 to support the UK's existing platforms, services, and content. This scenario is catering to a major adoption of data centers.
- Overall, the digital economy in the United Kingdom accounted for more than 7% of the country's GDP in 2022. This upward trend is set to continue, creating demand for enterprise cloud and software-as-a-service (SaaS) utilities, as well as e-commerce, streaming video services, and mobile apps that are becoming omnipresent in today's society.
London is a major hotspot in the country for data center construction
- London is the largest data center hotspot in the country, accounting for over 75.3% of the data center installed capacity in 2023, and is expected to reach 2499.72 MW by 2029. The future market share reflects a decreasing trend till 2029, as the market has already reached its maturity stage. In 2029, the market share is expected to reach 69.25%.
- This decreasing trend is majorly due to investor focus on other cooler regions to save the investment in power and cooling systems, such as Scotland, Manchester, and Wakefield, outside London, based on the digitalization investment and the pricing scenario in the energy sector. Most Londoners are currently on a variable price contract with their energy suppliers. The variable price was set at around GBP 1,971 (USD 2.7) per year in August 2022, but it is expected to increase to GBP 3,549 (USD 4.6) per year from October 2022.
- London is an IT hub, and technology investment attracts investors to look for DC construction. London remains the city driving the UK's digital technology success, securing more than 59% of all digital tech FDI recorded in the United Kingdom in 2022.
- The Rest of the United Kingdom comprises Manchester, Crawley, Surrey, Leeds, Edinburgh, Newcastle, Liverpool, and other smaller regions. These regions will have a market share of 24.7% in 2023, and it is expected to reach 31% by 2029. The main reason for DC construction in these regions is the adoption of digitalization. In 2022, Bristol was named among the top 20 European tech hubs for venture capital funding after its technology firms raised GBP 220 million in the first half of the year. These factors are set to increase the scope and demand for data processing facilities in the Rest of the United Kingdom.
United Kingdom Data Center Construction Industry Overview
The United Kingdom data center construction market is fairly consolidated, with significant companies such as Castrol Limited, Alfa Laval Ltd, Airedale International Air Conditioning, Datacentre UK, and Sweco AB.
In February 2023, Datum Group, a UK data center firm, announced its plans to build two data center facilities in south and northwest England by 2024. The facilities are planned to host a capacity of 600 racks and 1000 new server racks over 25,000 sq ft (2,300 sqm) of space. Such developments are expected to drive opportunities for the vendors in the market.
In April 2023, Glencar, a UK construction firm, received a EUR 140 million contract to build a 6-story data center in London by 2025. The new data center campus is expected to host advanced cooling systems. Such developments are expected to provide opportunities for the vendors studied in the market.
United Kingdom Data Center Construction Market Leaders
Castrol Limited
Alfa Laval Ltd
Airedale International Air Conditioning
Datacentre UK
Sweco AB
*Disclaimer: Major Players sorted in no particular order
United Kingdom Data Center Construction Market News
- October 2022: CyrusOne announced that they proposed a new data center in Iver Heath, Buckinghamshire, UK. The site will have 10 data halls supporting around 90MW of capacity, and the project would include a new on-site substation.
- August 2022: Colt announced to open a new data center in Hayes, West London, that would more than triple its existing footprint in the UK capital. It will deliver a new purpose-built 50MW in a 2.1-hectare data center campus known as 'London 4'.
Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 5G Developments Fuelling Data Center Investments
4.2.2 Growing Cloud Servce adoption
4.2.3 Green Data Centers rising awarness of Carbon-Neutrality leading to Infrastructure upgrades
4.3 Market Restraints
4.3.1 Security Challenges Impacting Growth of Data Centers
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5. Key Industry Statistics
5.1 Planned/Under Construction IT Load Capacity
5.2 Planned/Under Construction Raised Floor Space
5.3 Planned/Under Construction Submarine Cable
6. MARKET SEGMENTATION
6.1 Tier Type
6.1.1 Tier 1 and 2
6.1.2 Tier 3
6.1.3 Tier 4
6.2 Data Center Size
6.2.1 Small
6.2.2 Medium
6.2.3 Large
6.2.4 Mega
6.2.5 Massive
6.3 Infrastructure
6.3.1 Cooling Infrastructure
6.3.1.1 Air-based Cooling
6.3.1.2 Liquid-based Cooling
6.3.1.3 Evaporative Cooling
6.3.2 Power Infrastructure
6.3.2.1 UPS Systems
6.3.2.2 Generators
6.3.2.3 Power Distribution Unit (PDU)
6.3.3 Racks and Cabinets
6.3.4 Servers
6.3.5 Networking Equipment
6.3.6 Physical Security Infrastructure
6.3.7 Design and Consulting Services
6.3.8 Other Infrastructure
6.4 End-User
6.4.1 IT & Telecommunication
6.4.2 BFSI
6.4.3 Government
6.4.4 Healthcare
6.4.5 Other End User
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 AECOM
7.1.2 Sweco AB
7.1.3 DPR CONSTRUCTION, INC.
7.1.4 IBM Corporation
7.1.5 Schneider Electric SE
7.1.6 Fortis ConstructionInc.
7.1.7 Airedale International Air Conditioning
7.1.8 Clune Construction Company LP
7.1.9 Datacentre UK
7.1.10 Castrol Limited
7.1.11 Honeywell International Inc.
7.1.12 Johnson Controls International PLC
7.1.13 Arup Group
7.1.14 Datadome Group
7.1.15 Hewlett Packard Enterprise (HPE)
7.1.16 Alfa Laval Ltd
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
United Kingdom Data Center Construction Industry Segmentation
A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services. Under data center construction, we are tracking the capital expenditure that was incurred while building the existing data center facilities and also estimating the future capex based on upcoming data center facilities.
The United Kingdom Data Center Construction Market is segmented by Tier Type (Tier 1 and 2, Tier 3, and Tier 4), by Data Center Size (Small, Medium, Large, Massive, and Mega), by Infrastructure (Cooling Infrastructure (Air-based Cooling, Liquid-based Cooling, Evaporative Cooling), Power Infrastructure (UPS Systems, Generators, Power Distribution Unit (PDU), Racks and Cabinets, Servers, Networking Equipment, Physical Security Infrastructure, Design and Consulting Services, and Other Infrastructure), and End User ( IT & Telecommunication, BFSI, Government, Healthcare, and Other End User). The market sizes and forecasts are provided in values of USD for all the above segments.
| Tier Type | |
| Tier 1 and 2 | |
| Tier 3 | |
| Tier 4 |
| Data Center Size | |
| Small | |
| Medium | |
| Large | |
| Mega | |
| Massive |
| Infrastructure | |||||
| |||||
| |||||
| Racks and Cabinets | |||||
| Servers | |||||
| Networking Equipment | |||||
| Physical Security Infrastructure | |||||
| Design and Consulting Services | |||||
| Other Infrastructure |
| End-User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Healthcare | |
| Other End User |
Frequently Asked Questions
What is the current United Kingdom Data Center Construction Market size?
The United Kingdom Data Center Construction Market is projected to register a CAGR of 5.05% during the forecast period (2024-2029)
Who are the key players in United Kingdom Data Center Construction Market?
Castrol Limited, Alfa Laval Ltd, Airedale International Air Conditioning, Datacentre UK and Sweco AB are the major companies operating in the United Kingdom Data Center Construction Market.
What years does this United Kingdom Data Center Construction Market cover?
The report covers the United Kingdom Data Center Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United Kingdom Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United Kingdom Data Center Construction Industry Report
Statistics for the 2024 United Kingdom Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United Kingdom Data Center Construction analysis includes a market forecast outlook to for 2024 to (2024to2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
