United Kingdom Colocation Market - Forecasts from 2024 to 2029

The United Kingdom colocation market is expected to grow at a CAGR of 6.50%, reaching a market size of US$3.852 billion in 2029 from US$2.467 billion in 2022.

The colocation data center provides renting space to business companies for servers as well as other computing hardware, thereby enabling them to remove in-house servers or data centers. It provides them access to advanced data center technology which offers security, continuity, and scalability for various applications and data systems.

Market Drivers

Growing digital transformation and internet users bolster the market growth

The United Kingdom is witnessing a significant increase in its internet users as well also it is actively involved in the establishment of digital transformation schemes for sectors. For instance, in June 2022, the British government launched a new digital and data strategy for the system and services transformation of sectors by 2025. The growing number of internet users coupled with the establishment of digital transformation strategies will surge the demand for colocation services for efficient data handling and storage thereby boosting the market growth

Favorable government initiatives are positively impacting the UK colocation market growth.

The adoption and Deployment of 5G have created a boom in the volume of data traffic over the years which has made companies shift from traditional on-premises data center to flexible and efficient colocation data center which provides a high level of security and operability during data processing. The British government realizing the growing trend of 5G adoption is actively participating in the establishment of such technology in the country. For instance, in March 2021, the Department for Digital, Culture, Media & Sports launched the “5G Testbeds and Trial Programme” whose key objective is to accelerate 5G deployment in the United Kingdom. Such favorable initiative related to 5G technology will boost colocation service demand in the United Kingdom for effective data handling and storage during the forecast period thereby augmenting the market growth.

Large enterprise are projected to grow at a significant rate

Based on enterprise size, the United Kingdom colocation market is segmented as small, medium, and large. The large enterprise is expected to grow at a significant rate during the forecast period of the United Kingdom colocation market, owing to the investments by the major companies for the data centers establishment in the United Kingdom. For instance, in December 2020, NTT Ltd. announced the establishment of its London 1 data center in the United Kingdom which came as a part of the company’s £500 million data center investment plan for uplifting the UK’s digital & tech industry.

Key Developments

• In November 2022: Asanti DataCenter Limited announced the acquisition of Dairy Group’s five UK data centers which came as part a part the former’s objective to provide data center colocation services in UK.
• In July 2022: Proximity Data Center launched its colocation data center namely “Proximity Edge 9” in Bristol. The center is a tier 3 facility having 4 megawatts of IT capacity and will serve colocation users in Bristol as well as throughout the South West of Wales and England.

Segmentation:

By Type

• Retail
• Wholesale
• Hybrid

By Enterprise Size

• Small
• Medium
• Large

By Industry Vertical

• BFSI
• Communication Technology
• Education
• Healthcare
• Media and Entertainment
• Retail & E-Commerce
• Others