IT & Telecom Sectors Lead U.K. Data Center Market Growth

NEW YORK - Sept. 9, 2024 - PRLog -- The U.K. data center market was valued at USD 7,921.6 million in 2023 and is projected to reach USD 9,324.6 million by 2030, growing at a compound annual growth rate (CAGR) of over 2.4%.

A significant driver of this market's growth is the widespread adoption of cloud-based solutions and services across the nation. These solutions offer numerous benefits, including ample storage, enhanced data security, access to a variety of computing resources, and energy and cost savings—all at an affordable price.

According to a government report, the U.K. is one of the leading markets for cloud solutions and services in Europe, with public cloud services generating over USD 10 billion in revenue in 2022.

A notable trend in this industry is the increasing use of renewable energy sources to power data centers. The International Energy Agency (IEA) reports that the U.K. aims to reduce its economy-wide greenhouse gas emissions by at least 68% by 2030, compared to 1990 levels, and achieve net-zero emissions by 2050. Data centers, in particular, are expected to become carbon-neutral by around 2030.

Awareness of the importance of using renewable energy to reduce carbon emissions and promote a sustainable lifestyle is growing rapidly.

Browse detailed report analysis on "U.K. Data Center Industry Growth and Forecast Report, 2030 (https://www.psmarketresearch.com/market-analysis/uk-data-...)"

Key Insights

• In 2023, the IT infrastructure segment accounted for the largest share of the market revenue, approximately 70%, a trend expected to continue throughout this decade. This is primarily due to the critical role IT infrastructure plays in these facilities, leading to significant investment in this area.
• The IT & telecom sector is expected to lead the market in 2030 with a 35% share, driven by the continuous deployment of advanced applications and software, as well as the emergence of startups in the U.K. The rise in mobile internet users has significantly increased the demand for data storage, further propelling this sector.
• Emerging technologies such as IoT and 5G are anticipated to drive growth in the IT & telecom sector, generating substantial data volumes and, in turn, fueling the market's expansion in the coming years.
• The healthcare sector is forecasted to experience the highest CAGR, at 3.0%, over the next few years, primarily due to the increasing importance of data storage in this field.
• The U.K. data center market is highly fragmented, with a large number of companies operating within it. The constant influx of new players continues to impact both new and established service providers.