United Kingdom Data Center Colocation Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Colocation Model (Wholesale, Retail), By Enterprise Size (Small, Medium, Large), And By Industry Vertical (Communication And Technology, BFSI, Government, Healthcare, Manufacturing, Media And Entertainment, Others) - Forecasts From 2022 To 2027

The United Kingdom data center colocation market is projected to reach US$6.993 billion by the year 2027, up from US$2.530 billion in 2020, growing at a CAGR of 15.63%.

The market for data center colocation in the United Kingdom is primarily driven by factors such as rising data security concerns and government regulations such as the GDPR. Furthermore, the presence of a highly developed telecom industry also supports the market growth in the country throughout the forecast period. In addition, increasing IoT spending in the United Kingdom is also supplementing the market growth of data center colocation significantly. Moreover, a growing volume of big data across end-use industries is putting pressure on companies to expand their data storage from time to time, thereby propelling the market growth of data colocation center in the country.  

The United Kingdom data center colocation market is segmented based on the colocation model, enterprise size, and industry vertical. According to the colocation model, the market is segmented into wholesale and retail. The UK data centre colocation market is divided into three categories based on enterprise size: small, medium, and large. The market is divided into industry verticals such as communication and technology, BFSI, government, healthcare, manufacturing, media and entertainment, and others.

Equinix, Inc., Telehouse, Verizon, Colt Technology Services Group Ltd., Zayo Group, LLC, CenturyLink, Internap Corporation, and ANEXIO, Inc. are among the prominent key market players in the United Kingdom data centre colocation market. These companies hold a noteworthy share in the market on account of their good brand image and product offerings. Major players in the United Kingdom Data Center Colocation market have been covered along with their relative competitive positions and strategies. The report also discusses recent deals and investments made by various market participants over the last two years.

Recent development and expansions

• Telehouse opened its fifth data center in London Docklands in March 2022, claiming it will be the company's largest global facility once fully operational. The company has invested £223 million. As businesses continue to accelerate their digital transformation in the aftermath of the pandemic, and demand for digital services grows, Telehouse provides enterprises with greater efficiency through scalable hybrid cloud infrastructure, faster access to data and applications, and the ability to scale.
• Equinix, the world's digital infrastructure companyTM, announced plans to construct a new International Business ExchangeTM (IBX®) data centre in the Agecroft Commerce Park in SALFORD, MANCHESTER, UK, in October 2021. Equinix's new Manchester data centre will not only help to create well-paying jobs in Manchester and the surrounding region, but it will also ensure that businesses have the digital technology they need to succeed and grow in global markets.
• Colt Technology Services announced the expansion of its cloud offerings with Oracle FastConnect in February 2020. Colt and Oracle's expanded collaboration would enable customers to benefit from on-demand, high-speed secure connectivity from their sites to the Oracle Cloud.
• Colt expanded its IQ Network in London in January 2020, adding 110 kilometres of new fibre. Customer demand and broader industry trends such as 5G drove this expansion. A new 7,000-kilometer network connecting more than ten cities in Eastern Europe was built, along with more than 300 kilometres of fibre installed in the London, Dublin, and Berlin metros.
• In June 2019, a multinational bank invested in Zayo in order to expand the European Network. The company intends to offer a private wavelength network (W-PDN) to expand the capacity and footprints of its European core network. Zayo will provide diverse connectivity among the company's offices and data centres.

COVID-19 impact

The effect of the Covid-19 coronavirus pandemic on the rate of digital transformation in UK businesses. When the Covid-19 pandemic began in Spring 2020, businesses around the world reacted quickly to ensure they could accommodate remote working and pivot to support changes in consumer spending habits. Aside from investing in technologies that have the potential to help organisations quickly adapt their business strategies in response to the global events.

Business leaders are also investing in preparing their organisations to support hybrid working models in the aftermath of the pandemic. The Covid-19 pandemic has accelerated their digital transformation journeys, forcing businesses to increase their efforts to cater to a dispersed workforce.

Market Segmentation

• By Colocation Model
  • Wholesale
  • Retail
• By Enterprise Size
  • Small
  • Medium
  • Large
• By Industry Vertical
  • Communication and Technology
  • BFSI
  • Government
  • Healthcare
  • Manufacturing
  • Media and Entertainment
  • Others