Data Center market investment analysis & growth opportunities 2029

The United Kingdom Data Center Market was valued at USD 8.80 billion in 2023, and is projected to reach USD 10.12 billion by 2029, showcasing a CAGR of 2.36%, according to Research and Markets.

The UK data center market is thriving due to the widespread adoption of digital platforms, expanding 5G connectivity, rising internet users, increasing data traffic, government initiatives, and integrating advanced technologies like IoT, big data, and AI. These factors collectively contribute to the heightened demand for data centers.

The UK benefits from a robust network of internet exchange points, including LINX London, LINX Manchester, and others, which facilitate inland connectivity and support seamless data exchange within the country.

The UK boasts 56 submarine cables connecting it to key regions globally, facilitating robust connectivity and supporting initiatives like 5G rollout and cloud service expansion. Upcoming cables like 2Africa, Amitie, and BT North Sea strengthen the UK’s global connectivity.

The UK government is actively promoting digital infrastructure through projects like the Wireless Infrastructure Strategy, aimed at increasing wireless connectivity by 2030, and the Digital Strategy, outlining comprehensive digital policy across critical domains.

In November 2023, the UK government partnered with IBM to grant access to advanced quantum computers via the cloud. CGG established a 100 petaflops HPC Hub powered by renewable energy, highlighting investments in AI and high-performance computing infrastructure.

By 2040, it’s projected that one million UK businesses will integrate AI-driven technologies, reflecting AI’s continued growth trajectory and importance in shaping the digital landscape. Research and Markets