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Study Period | 2019 - 2031 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2031 |
Market Size (2025) | USD 1.94 Billion |
Market Size (2031) | USD 4.24 Billion |
CAGR (2025 - 2031) | 13.96 % |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
United Kingdom Data Center Construction Market Analysis
The United Kingdom Data Center Construction Market size is estimated at USD 1.94 billion in 2025, and is expected to reach USD 4.24 billion by 2031, at a CAGR of 13.96% during the forecast period (2025-2031).
The UK data center market is experiencing robust growth, propelled by the widespread adoption of digital platforms, the expansion of 5G connectivity, a growing internet user base, surging data traffic, government support, and the integration of cutting-edge technologies such as IoT, big data, and AI.
- The upcoming IT load capacity of the UK data center construction market is expected to reach around 4050 MW by 2030.
- The country's construction of raised floor area is expected to increase by 14.5 million sq. ft by 2030.
- The country's total number of racks to be installed is expected to reach 726k units by 2030. London is projected to house the maximum number of racks by 2030.
- There are close to 60 submarine cable systems connecting the United Kingdom to the world, and many are under construction. One such submarine cable, estimated to be built by 2027, is IOEMA, which stretches over 1,371 Kilometers spread across Denmark, Germany, the Netherlands, Norway with Dumpton Gap, and the United Kingdom.
United Kingdom Data Center Construction Market Trends
The IT and Telecom is Expected to Register Significant Share in the Market
- Cloud and telecom had the highest shares of the market, with 20.3% and 17.9%, respectively, in 2023. The segments are expected to witness stable growth, accounting for 20.1% and 20%, respectively, in 2029.
- 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.
- Further, the majority of end users are swiftly embracing cloud technology, drawn by its widely touted benefits, notably scalability. For instance, in June 2024, a news article reported that the London-based energy distributor and system operator, UK Power Networks, is finalizing a significant shift to a hybrid cloud setup. This transition is poised to cater to approximately a third of the UK's populace and commercial entities. While the core of this migration revolves around Microsoft Azure, UK Power Networks will uphold on-premises systems in a pair of data centers. These on-premises setups specifically house highly sensitive data and services, safeguarding them from potential cyber threats. CIO Matt Webb, with a 15-year tenure at the company, highlighted this strategic move.
- Moreover, many OECD countries witnessed unprecedented growth in their ICT sectors in 2023. The United Kingdom, Belgium, Germany, Austria, and the Netherlands saw growth rates exceeding 10%. This upward trend is set to continue, creating demand for enterprise cloud and software-as-a-service (SaaS) utilities and e-commerce, streaming video services, and mobile apps that are becoming omnipresent in today's society.
- The UK government is actively investing in expanding its telecom networks to bolster the nation's digitalization efforts. In a notable move, in July 2024, the government pledged GBP 40 million to ensure nationwide 5G coverage by 2030. This initiative aligns with UK businesses' increasing emphasis on digitization, underlining the pivotal role of robust network connectivity in driving the nation's economy.
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Tier 3 is Expected to Hold a Major Share in the Market
- In 2023, there were around 150 data centers in the United Kingdom with Tier 3 certification, with a cumulative IT load capacity of 1,717 MW. Reliability and affordability are the major factors driving the demand for tier 3 data centers in the country. The tier 3 segment is projected to register a CAGR of 9.12% to reach around 3,581 MW by 2030.
- By 2023, London had established itself as a leading hub for Tier 3 certified data centers. Digital Realty Trust Inc. led the pack with an impressive IT load capacity of 117.9 MW, strategically distributed across 14 facilities. Equinix Inc. closely followed, with a capacity of 221 MW spread over 15 facilities. ST Telemedia Global Data Centres operated 11 facilities, hosting an IT load of 180 MW. CyrusOne Inc. managed 123.9 MW across six facilities, NTT Ltd. maintained 76.4 MW in 7 facilities, while the rest of the market players held smaller shares.
- London is slated to construct approximately 20 data center facilities, each meticulously designed to meet Tier 3 standards. These strategic facilities are projected to collectively contribute more than 1,500 MW of IT load capacity to the region.
- Key players planning to invest in data centers include Equinix Inc., NTT Ltd, Echelon Data Centres, Vantage Data Centers, and Proximity Data Centres. These developments in the UK market are poised to amplify the demand for Tier 3-certified data centers. This heightened demand, particularly within the Tier 3 category, is expected to fuel the necessity for data center construction services in the coming years.
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United Kingdom Data Center Construction Industry Overview
The UK data center construction market is fairly consolidated, with significant companies such as AECOM, Jacobs Engineering Group, Turner & Townsend, Arup, and Collen Construction Limited.
- June 2024: Ada Infrastructure secured approval to proceed with its 210MW data center campus in the Royal Docks of East London, United Kingdom. The company, owned by GLP, obtained planning consent from the Newham Strategic Development Committee, marking a significant milestone in the creation of what is set to become one of London's premier data center campuses.
United Kingdom Data Center Construction Market Leaders
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AECOM
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Jacobs Engineering Group
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Turner & Townsend
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Arup
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Collen Construction Limited
- *Disclaimer: Major Players sorted in no particular order
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United Kingdom Data Center Construction Market News
- June 2024: Segro, a prominent property investor, secured approval to construct three data centers in Slough, located to the west of London. These centers, spanning 324,316 sq. ft (30,130 sq. m) and 534,966 sq. ft (49,700 sq. m), are set to bolster the region's data infrastructure. This move signals a significant investment in Slough's data capabilities.
- May 2024: CoreWeave, a prominent cloud provider specializing in AI, unveiled its European headquarters in London, marking a significant step in its continental expansion. The move, backed by a GBP1 billion investment, underscores CoreWeave's commitment to enhancing the UK's AI landscape. This initiative is poised to generate employment prospects spanning engineering, operations, finance, and go-to-market strategies. CoreWeave aims to inaugurate two data centers in the United Kingdom in 2024, with additional expansions slated for 2025.
United Kingdom Data Center Construction Industry Segmentation
Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.
The UK data center construction market is segmented by infrastructure (electrical infrastructure (power distribution solution (PDU, transfer switches, switchgear, power panels and components, and other power distribution solutions)), power back-up solutions (UPS and generators), service - design and consulting, integration, and support and maintenance, mechanical infrastructure (cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, and in-row and in-rack cooling)), racks, and other mechanical infrastructure)), general construction, tier type (tier 1 and 2, tier 3, and tier 4), and end user (banking, financial services and insurance, IT and telecommunications, government and defense, healthcare, and other end users). The market sizes and forecasts are provided in value (USD) for all the above segments.
Market Segmentation - By Infrastructure | Market Segmentation - By Electrical Infrastructure | Power Distribution Solution | PDU - Basic and Smart - Metered and Switched solutions | |
Transfer Switches | Static | |||
Automatic (ATS) | ||||
Switchgear | Low Voltage | |||
Medium Voltage | ||||
Power Panels and Components | ||||
Other Power Distribution Solutions | ||||
Power Back up Solutions | UPS | |||
Generators | ||||
Service - Design and Consulting, Integration, and Support and Maintenance | ||||
Market Segmentation - By Mechanical Infrastructure | Cooling Systems | Immersion Cooling | ||
Direct-to-Chip Cooling | ||||
Rear Door Heat Exchanger | ||||
In-row and In-rack Cooling | ||||
Racks | ||||
Other Mechanical Infrastructure | ||||
General Construction | ||||
Market Segmentation - By Tier Type | Tier-I and-II | |||
Tier-III | ||||
Tier-IV | ||||
Market Segmentation - By End User | Banking, Financial Services, and Insurance | |||
IT and Telecommunications | ||||
Government and Defense | ||||
Healthcare | ||||
Other End Users |
United Kingdom Data Center Construction Market Research FAQs
How big is the United Kingdom Data Center Construction Market?
The United Kingdom Data Center Construction Market size is expected to reach USD 1.94 billion in 2025 and grow at a CAGR of 13.96% to reach USD 4.24 billion by 2031.
What is the current United Kingdom Data Center Construction Market size?
In 2025, the United Kingdom Data Center Construction Market size is expected to reach USD 1.94 billion.
Who are the key players in United Kingdom Data Center Construction Market?
AECOM, Jacobs Engineering Group, Turner & Townsend, Arup and Collen Construction Limited are the major companies operating in the United Kingdom Data Center Construction Market.
What years does this United Kingdom Data Center Construction Market cover, and what was the market size in 2024?
In 2024, the United Kingdom Data Center Construction Market size was estimated at USD 1.67 billion. The report covers the United Kingdom Data Center Construction Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the United Kingdom Data Center Construction Market size for years: 2025, 2026, 2027, 2028, 2029, 2030 and 2031.
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United Kingdom Data Center Construction Industry Report
Statistics for the 2025 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 for 2025 to 2031 and historical overview. Get a sample of this industry analysis as a free report PDF download.