Market Overview

The UK data center market was valued at USD 7,459.39 Million in 2025 and is expected to grow at a compound annual growth rate (CAGR) of 5.65% to reach USD 12,237.47 Million by 2034. This growth is driven by the digital transformation of enterprises, rising adoption of cloud computing, and advanced technologies including AI and IoT. The market is shaped by increasing real-time data processing needs and expanding e-commerce activities. More details can be found in the UK Data Center Market.

 Study Assumption Years

• Base Year: 2025
• Historical Period: 2020-2025
• Forecast Period: 2026-2034

UK Data Center Market Key Takeaways

• The UK data center market size was USD 7,459.39 Million in 2025 with a CAGR of 5.65% projected during 2026-2034.
• The solution segment holds a dominant market share of 71% in 2025, driven by demands for integrated infrastructure and advanced software.
• Hyperscale data centers lead the market with a 45% share in 2025, supported by cloud investments and AI workload growth.
• Large enterprises represent 68% of the market in 2025, underpinning requirements for high-performance computing and multi-cloud environments.
• IT and telecom are the largest end users with a 38% share, fueled by network modernization and expanding cloud services.

Sample Request Link: https://www.imarcgroup.com/uk-data-center-market/requestsample

Market Growth Factors

The UK data center market is mainly driven by the quickly changing enterprise digital transformation activities. These changes not only alter the enterprises operational models but also result in a continuous influx of demand. Enterprises are going digital, first which implies the need for a scalable and strong infrastructure to be able to support such innovative cloud, AI, and advanced analytics usage. For example, Google Cloud's Waltham Cross data, centre, which is expected to be fully operational in December 2025, is a perfect example of the investments that are being made to enable high, performance, low, latency cloud infrastructure, which in turn will be able to support enterprise AI workloads. A change to hybrid and remote working styles has helped to keep infrastructure needs at a high level in various industry sectors.

Government policies that regard data centers as the core of the national infrastructure have been one of the factors that have significantly contributed to the growth of the market. In September 2025, the UK government made a formal decision to consider data centers as critical infrastructure. This change means that data centers will have planning approvals that are faster, regulatory protections that are better, and support for the coordinated response to emergencies. All these measures increase investors confidence in the market while governments digitalization programs are creating an attractive environment for data center facilities that are compliant, secure, and resilient and can meet strict public sector requirements. The regional development projects are also helping to extend the growth beyond the metropolitan hubs.

By far the most significant factor is the increasing use of emerging technologies, with the emphasis on AI and ML, which lead to the UK having an insatiable need for specialized computing infrastructures. In November 2025, Nebius debuted its first GPU cluster in the UK comprising 4, 000 Nvidia HGX B300 GPUs at Ark

Market Segmentation

Component:

• Solution: Dominates with 71% market share in 2025, due to demand for unified data management, integrated infrastructure platforms, and advanced software enabling scalable, efficient environments. Significant investments include Equinix’s £3.9 billion AI-ready data centre campus in Hertfordshire.

Type:

• Hyperscale: Leads with a 45% share in 2025, driven by cloud service growth and AI workload deployment. Notable investment includes Colt DCS’s £2.5 billion expansion in West London with new hyperscale data centers and innovation hubs.

Enterprise Size:

• Large Enterprises: Exhibit 68% market share in 2025, fueled by extensive digital infrastructure needs, hybrid cloud strategies, and demand for premium, high-performance facilities, illustrated by Pulsant’s acquisition expanding its UK network.

End User:

• IT and Telecom: Comprise 38% of the market in 2025, driven by next-generation connectivity rollouts, expansive cloud services, and the fundamental role of data centres in digital communication and technology service delivery.

Regional Insights

London is the dominant data centre hub in the UK, supported by unmatched connectivity, proximity to financial institutions, and extensive internet exchange points. Its mature ecosystem, skilled talent pool, and international business environment attract major global operators. Telehouse’s £275 million West Two data centre construction at London Docklands in 2025 exemplifies regional investment. The South East region serves as a key expansion zone absorbing demand overflow from London’s constrained market, benefiting from strategic corridors along M4 and M25 offering robust connectivity and development conditions.

Recent Developments & News

In September 2025, Vantage Data Centers inaugurated its second London campus, LHR2, in Park Royal adding 20 MW of IT capacity. The facility integrates sustainable, BREEAM Excellent-certified systems and features one of Europe’s largest public art installations during the London Design Festival. This expansion supports the growing demand for digital and hyperscale infrastructure in the UK, reinforcing its position in the evolving data centre landscape.

Key Players

• BT
• Equinix
• Colt DCS
• Pulsant
• Nebius
• Vantage Data Centers
• Telehouse

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

Request For Customization:https://www.imarcgroup.com/request?type=report&id=23076&flag=E

About Us

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

Contact Us

IMARC Group,

134 N 4th St. Brooklyn, NY 11249, USA

Email: sales@imarcgroup.com

Tel No: (D) +91 120 433 0800

United States: +1-201971-6302