UK Data Center Colocation Market to Reach $9.01 Billion by 2030, Driven by AI, Cloud Adoption, and Infrastructure Expansion Across 35+ Cities
The UK data center colocation market was valued at USD 4.12 billion in 2024 and is projected to grow to USD 9.01 billion by 2030, expanding at a compound annual growth rate (CAGR) of 13.93%. This significant growth is fueled by accelerating digital transformation, widespread adoption of cloud services, and the rising demand for emerging technologies such as artificial intelligence, the Internet of Things, and big data analytics. Government initiatives like Project Gigabit are playing a pivotal role in driving infrastructure development and digital adoption across key sectors including healthcare, finance, and manufacturing. These efforts are enhancing connectivity and supporting the expansion of data-intensive operations across the country. As of December 2024, the UK hosts approximately 239 existing colocation data center facilities. The majority of these are concentrated in high-demand regions, with around 73 facilities located in Greater London County and approximately 37 in Berkshire County. These areas continue to serve as major hubs for data infrastructure due to their proximity to financial centers, tech ecosystems, and robust fiber connectivity. In addition to existing capacity, the UK is witnessing strong development momentum, with around 71 new data center facilities currently in planning, announced, or under construction. This expansion reflects growing investor confidence and the increasing need for scalable, secure, and energy-efficient infrastructure to support AI workloads and cloud-based services. The report provides a comprehensive analysis of the market, covering key aspects such as vendor landscape, existing and emerging operators, market growth drivers, revenue and pricing trends, and competitive dynamics. It also includes detailed insights into 35+ cities across the UK, offering a granular view of regional demand and supply patterns. Key questions addressed include the impact of regulatory and technological shifts, the role of sustainability in data center development, and the competitive positioning of major players in the UK market. With the rise of AI-driven workloads and increasing data volumes, the demand for reliable, high-performance colocation services is expected to remain robust. The report is designed for stakeholders including infrastructure providers, cloud service providers, investors, and policymakers seeking to understand the evolving landscape of the UK’s data center ecosystem. It offers strategic intelligence to support decision-making in a rapidly transforming digital economy.
