Market Trends of United Kingdom Data Center Power Industry
IT & Telecommunication Segment Holds Major Share
- Emerging technologies and the convergence of technologies such as artificial intelligence, the Internet of Things, and machine learning are expected to enable further growth in cloud computing and drive the development of the UK cloud computing market over the next five years.
- With cloud storage, the customer or company uses the provider's servers and hardware to store their data or run their systems. Some colocation providers not only offer data center hosting for customer systems but also offer managed services that isolate virtualized workloads in a multi-tenant server environment.
- The United Kingdom is doing exceptionally well in growing broadband internet connections. The government plans to make 5G available to most of the population by 2027, 15 million more premises connected to full fiber by 2025, and total fiber coverage throughout the country by 2033.
- Cloud adoption by UK businesses is over 50%, and adoption of cloud computing has been escalating over the years. In 2016, 30% of all UK businesses purchased cloud computing services via the Internet, but this share has risen to 44% in 2018 and 78% in 2023. In June 2022, the UK government announced that the value of cloud services for 2021-2022 will exceed GBP 280 million (USD 356.5 million).
- Amazon Web Services (AWS) doubled its investment in the United Kingdom by investing GBP 1.8 billion (USD 2.24 billion) in cloud computing infrastructure over the next two years. AWS is a cloud provider, but it faces increasing competition from tech giants Microsoft and Google in a battle for enterprise customers. Such improvements in the market are expected to propel the segment's growth, which creates more demand for DC power infrastructure solutions.
Understand The Key Trends Shaping This Market
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Monitored PDUs Hold Significant Market Share
- Monitored rack PDUs are essential components in data center and server room infrastructure, providing real-time monitoring of power usage, voltage, current, and other electrical parameters. This data helps administrators make informed decisions about power allocation and capacity planning.
- By tracking power usage trends, administrators can plan for future growth and ensure that power capacity is not exceeded, preventing overloads that could lead to equipment failures. It also helps identify inefficiencies and optimize energy usage. This can lead to cost savings and a reduced environmental footprint by eliminating unnecessary power consumption. In addition, it allows administrators for remote access and control, reducing the need for physical presence and minimizing operational disruptions.
- There is an increased focus on digitalization and internet penetration in the country. Internet penetration stood at 97.8% at the start of 2023, with 0.3% growth between 2022 and 2023). Moreover, the United Kingdom is the fourth-largest market for e-commerce. In 2021 and 2022, consumers across the country were turning toward e-commerce, and over 85% of residents shop online, creating more need for storage facilities. The growing demand for data storage has led to the deployment of intelligent power distribution units (PDUs) against simple multi-socket rack installations with server and network equipment, which optimize power consumption in data centers.
- The country’s legislation on energy efficiency has been tightened, which could significantly impact data center businesses. The UK Government, which has a reputation for high energy use in the data center industry, is undertaking robust measures to achieve a greener future that creates both challenges and opportunities.
- The Minimum Energy Efficiency Standards MEPS Regulations have been tightened from April 2023, making it illegal for real estate developers to rent buildings that do not meet the required standards (energy performance certificate EPC with a minimum E rating) until all possible cost-effective energy-saving measures are implemented or an exemption has been granted. By 2027, the UK government aims to have all rented non-domestic buildings achieve an EPC of C before attaining B by 2030. The government aims to achieve the EPC of C for all rented non-residential buildings by 2027 before achieving B in 2030. Like all commercial properties, data centers are subject to the same standards.
- Because of such developments and the necessity to reduce electricity consumption as per government measures in the country, the players in the market are expected to improve their strategies. For instance, in May 2023, Eaton, which provides power management services, launched G3 Universal Input Rack PDUs with dynamic C39 outlets capable of accommodating different plug configurations and input voltage requirements. To meet the most diverse data center rack power requirements, G3UPDU has added new features.
- In May 2023, Legrand, a significant global provider of electrical and digital building infrastructures, introduced the next generation of intelligent rack PDUs PRO4X and Raritan PX4. These new intelligent rack PDU designs revolutionize capacity planning, environmental monitoring, physical and digital access control, workload optimization, and uptime initiatives. Such developments in the segment are predicted to boost the market’s growth.
