UK Data Center Market – Investment Analysis, Growth Forecast, and Opportunities 2026-2031
October 26, 20266 Mins read8
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Cloud and AI demand, high-density infrastructure, waste-heat reuse, policy support and a deep vendor ecosystem strengthen UK data center investment potential.
UK Data Center Market Forecast to Record 22.12% CAGR from 2025 to 2031
The UK data center market is forecast to grow at a CAGR of 22.12% from 2025 to 2031, supported by rising demand for cloud services, artificial intelligence infrastructure, high-performance computing, colocation capacity, and secure digital platforms. The report provides detailed analysis of market investment, data center area, power capacity, colocation revenue, infrastructure development, competitive activity, and regional expansion across the country.
UK Data Center Market Highlights
The UK has approximately 243 operational third-party data centers, including around 74 facilities in Greater London. Around 82 additional data centers are planned or under construction, reflecting strong investor confidence and continued demand for digital infrastructure.
Major cloud service providers, including Amazon Web Services, Microsoft, Google, Oracle Cloud, and Tencent, continue to expand their UK operations. In December 2025, Amazon Data Services acquired a former coal plant site from RWE for approximately $265 million to support new data center development.
Artificial intelligence and high-performance computing are accelerating the deployment of high-density infrastructure. Operators are introducing racks exceeding 100 kW, while Kao Data’s KLON-03 facility in Harlow is designed to support rack power densities above 130 kW per rack.
Data protection and privacy compliance remain important considerations for operators and cloud providers. The Information Commissioner’s Office oversees compliance with the UK’s General Data Protection Regulation and the Data Protection Act 2018.
Sustainability initiatives are encouraging operators to connect facilities to district heating networks. In July 2025, Deep Green announced plans for a two-story data center in Bradford, West Yorkshire, connected to Yorkshire’s district heating network to repurpose waste heat.
Government digital strategies are strengthening the UK’s technology ecosystem. The Home Office 2030 Digital Strategy supports the adoption of digital technologies, data, and artificial intelligence, while the Digital Development Strategy 2024-2030 promotes digital transformation, connectivity, and international competitiveness.
Insurance providers are expanding coverage for data center and AI-related risks. In January 2026, FM Global and Aon broadened their offerings, while Advanced Technology Assurance introduced an AI-focused facility covering system failures, data loss, performance issues, and operational liabilities.
In January 2026, the UK Parliament established the Data Centres APPG to improve understanding of the sector, assess its contribution to economic growth, strengthen digital infrastructure resilience, and support national net zero objectives.
Research Scope and Strategic Value
The report evaluates UK data center market size by investment, facility area, power capacity, and colocation revenue. It assesses investments by colocation, hyperscale, and enterprise operators and examines capacity development across Greater London, Berkshire, Greater Manchester, and other counties.
Coverage of 243 existing facilities and 81 identified upcoming facilities across more than 34 locations.
Comparative analysis of existing and upcoming data center area and IT load capacity.
UK data center colocation revenue forecasts for 2022-2031, including retail and wholesale colocation revenue and pricing.
Market sizing and forecasts for IT infrastructure, electrical infrastructure, cooling, mechanical systems, and general construction services.
Analysis of industry trends, investment opportunities, growth drivers, development constraints, and competitive prospects.
Business profiles and product portfolios of leading investors, IT infrastructure vendors, construction contractors, and support infrastructure providers.
Competitive and Vendor Landscape
The UK data center market includes global cloud platforms, established colocation operators, infrastructure suppliers, construction specialists, and new investors. Alibaba Group, Amazon Web Services, Google, Microsoft, Oracle, and OVHcloud are expanding services to meet rising cloud and AI infrastructure requirements. In September 2025, Google opened a new data center in Hertfordshire to strengthen its UK cloud infrastructure.
Colocation providers account for a significant share of market investment. Leading participants include Ark Data Centres, AtlasEdge, Colt Data Centre Services, CyrusOne, Datum Datacentres, Digital Realty, Equinix, Global Switch, Green Mountain, Iron Mountain, Kao Data, NTT DATA, Telehouse, Vantage Data Centers, VIRTUS Data Centres, and Yondr Group.
New entrants are also pursuing development opportunities across the UK. Notable companies include Ada Infrastructure, Apatura, CloudHQ, Corscale Data Centers, Deep Green, Digital Reef, Drax Group, Greystoke, Latos Data Centres, Nscale, QTS Data Centers, SineQN, Valore Group, Wilton International, and Wycombe Film Studios.
The support infrastructure ecosystem includes ABB, Airedale, Caterpillar, Cummins, Eaton, Hitachi Energy, Honeywell, Legrand, Mitsubishi Electric, Schneider Electric, Siemens, STULZ, Trane, Vertiv, Submer, and other power and cooling technology suppliers. IT infrastructure providers covered include Arista Networks, Atos, Broadcom, Cisco, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Huawei Technologies, IBM, Lenovo, NetApp, and NVIDIA.
Construction and engineering capacity is supported by companies such as AECOM, Arup, AtkinsRealis, BladeRoom Data Centres, Future-tech, JCA Engineering, Kirby Group Engineering, Laing O’Rourke, Mace, Mercury, Ramboll, RED Engineering Design, Skanska, STO Building Group, Turner & Townsend, and McLaren Construction Group.
Market Segmentation
IT infrastructure: Servers, storage systems, and network infrastructure.
Electrical infrastructure: UPS systems, generators, transfer switches & switchgears, PDUs, and related equipment.
Mechanical infrastructure: Cooling systems, rack cabinets, and associated mechanical components.
Cooling systems: CRAC & CRAH units, chiller units, cooling towers, condensers, dry coolers, and other cooling technologies.
General construction: Core & shell development, installation & commissioning services, engineering & building design, fire detection & suppression systems, physical security, and Data Center Infrastructure Management.
Tier standard: Tier I & Tier II, Tier III, and Tier IV facilities.
Geography: Greater London and other UK cities and counties.
Key Questions Addressed
What is the current and forecast size of the UK data center market?
How much power capacity will be added across the UK during 2026-2031?
Which UK geographies are covered by the report?
Which cloud, AI, sustainability, regulatory, and investment factors are driving UK data center market growth?
Key Attributes:
Report Attribute
Details
No. of Pages
187
Forecast Period
2025 – 2031
Estimated Market Value (USD) in 2025
$16.4 Billion
Forecasted Market Value (USD) by 2031
$54.4 Billion
Compound Annual Growth Rate
22.1%
Regions Covered
United Kingdom
Key Topics Covered:
Chapter 1: Existing & Upcoming Third-Party Data Centers in the UK
Data Center Snapshot
Data Center Snapshot by Counties
Existing & Upcoming Data Center Supply
List of Upcoming Data Center Projects in the UK
Chapter 2: Investment Opportunities in the UK
Microeconomic & Macroeconomic Factors for the UK Market
Impact of AI in Data Center Industry in UK
Investment Opportunities in UK
Digital Landscape in UK
Government Support for Data Centers
Government Rules & Regulations
Market Investment by Area
Market Investment by Power Capacity
Chapter 3: Data Center Colocation Market in the UK
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