London Data Center Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR (2024 - 2030) | 10.32 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
London Data Center Market Analysis
The London Data Center Market is expected to register a CAGR of 10.32% during the forecast period.
The main drivers anticipated to drive the market expansion are the increasing demand for energy-efficient data centers, considerable investment by colocation service and managed service providers, and expanding hyperscale data center building. Additionally, the development of big data, cloud computing, and the Internet of Things (IoT) has made it possible for businesses to invest in new data centers to preserve business continuity.
- Additionally, industrial development is expected to prosper due to the rising need for security, operational efficiency, improved mobility, and bandwidth. Software-based data centers boost industry growth by providing a higher level of automation.
- London significantly influences the UK data center construction market's success. London is meant when they claim that the UK is home to one of the world's most significant data center clusters. London dominates Europe, with many data centers in the region. The data center industry has profited from demanding clients, which has led to coevolution in technical and operational capabilities. London is a significant global financial and economic hub. It is no coincidence that London has a top-tier financial sector and a top-tier data center construction industry.
- The market has been witnessing various expansion activities, partnerships, and collaborations by vendors to expand its geographical presence and enhance its position in the market. For instance, in March 2022, a Colocation firm Telehouse opened its fifth data center in London Docklands, claiming it would be the company's largest global facility. The firm has invested USD 273 million in the Telehouse South facility, which is expected to comprise 12,000 sqm of colocation space and provide power capacity for 18MW of IT infrastructure.
- Further, data center contribution to the nation's economy is expected that the government will develop new policies towards new data center construction players to enter the United Kingdom region. For instance, according to the digital strategy report from the united kingdom government. Stated that data centers support the internet economy, which accounts for nearly 16% of the national GDP, 10% of employment, and 24% of all UK exports, and is expanding more quickly than any other G-20 economy. While the annual GVA contribution of an existing data center is estimated to be between USD 360 million and USD 396 million, each new data center ranges from USD 492 million to USD 540 million. These are expected to drive the market in the city.
- Moreover, the rise in the implementation of digital transformation towards various government services is expected to drive the data center construction market in London City. For example, Over the past ten years, there has been a significant digital transformation of public services, including automation and AI. One Login for Government150, the use of data in the social care system, and the Home Office's (HO) Future Borders and Immigration reforms are just a few examples of the digital advancements made by the government. Opportunities for automated adoption are also being investigated, such as by the Home Office using visas and electronic travel authorizations.
- On the flip side, Data centers are incredibly electro-intensive, even though condensing digital activity into purpose-built facilities is far more efficient than traditional operational models with IT housed on office premises in server rooms. As a result, energy costs account for a considerable amount of turnover. The industry already has a Climate Change Agreement that requires public reporting of electricity and primary energy consumption. However, the CCL (Climate Change Levy) discount only partially tackles the widening gap in electricity prices between the UK and rival markets, particularly in Europe.
London Data Center Market Trends
Mega Size Data Center are Expected to Hold Significant Share
- Mega or hyperscale data centers are designed to handle large amounts of data and support various applications. These applications include IT and telecom services, government services, healthcare, e-commerce, media and entertainment, and more. The scalability of mega data centers allows businesses and organizations to quickly and efficiently add capacity to meet their growing needs. These data centers also play an important role in cloud computing, enabling businesses to store and access their data anywhere easily. Overall, mega data centers are a critical component in the digital infrastructure that supports the modern economy, providing the capacity and reliability that businesses and consumers need to stay connected and productive.
- Mega data centers are large-scale industrial operations that use massive amounts of electricity to house computer systems. As these data centers have grown in size and number, industry think tanks have proposed standards for their size and density. The Telecommunications Industry Association's Telecommunications Infrastructure Standard for Data Centers specifies the minimum requirements for telecommunications infrastructure of data centers and computer rooms, including single-tenant enterprise data centers and multi-tenant Internet hosting data centers. In addition, the Uptime Institute offers a data center Tier Classification Standard, which defines four tiers ranging from basic capacity to fault-tolerant and includes requirements for redundancy, power, and cooling.
- One example of a mega data center in London is the Colt London City Data Center located at 1-2 Princes Court, Wapping Lane, London E1W 2DA, United Kingdom. However, there may be other examples of mega data centers in London that are not publicly disclosed, as many large companies choose to keep the location and details of their data centers confidential for security reasons. It is also worth noting that the definition of a "mega" data center can vary, and there are no strict guidelines on what qualifies as such, but generally, a data center is considered to be "mega" if it exceeds 100,000 square feet in size and has a power usage effectiveness (PUE) of less than 1.2
- Several international and regional standards and regulations pertaining to data centers in Europe. The European Commission's proposed Energy Efficiency Directive in its Fit for 55 legislative package includes sustainability reporting requirements for data centers.
- In addition, the Telecommunications Industry Association's Telecommunications Infrastructure Standard for Data Centers specifies the minimum requirements for telecommunications infrastructure of data centers and computer rooms, including single-tenant enterprise data centers and multi-tenant Internet hosting data centers. There are also standards set by the Uptime Institute and EN-50600 and ISO-22237 Information Technology - Data center facilities and infrastructures, which define different paths and tiers of solutions for data center design and operations.
- According to Ofcom, the United Kingdom (UK) had By the conclusion of the last quarter in 2023, the United Kingdom had 4.82 million subscribers of mobile broadband. Between the beginning of 2012 and the end of 2023, the number of mobile broadband users in the UK fluctuated from 4.41 million to 5.56 million in 2015.
- In terms of mobile broadband applications, mega data centers can play a key role in enabling seamless connectivity for users on the move. Data centers can act as centralized hubs for storing and processing data, allowing for efficient and fast data transfer between different devices and networks.
Retail Colocation Center is Expected to Hold Significant Share
- Retail colocation is where the customer takes the space for lease within the data center, such as rack space within the caged-off area. Owing to various advantages, such as economics and ease of maintenance, smaller enterprises generally prefer retail colocation. Owning a data center is not a viable option due to the cost of land leasing. Also, maintenance of a colocation center is often outside budget constraints.
- The retail colocation market is likely driven by the high demand for colocation services from developing countries. Compared to wholesale colocation services, retail colocation services are highly suitable for enterprises requiring lesser computing power at one site or across multiple locations to benefit local and global customers. The retail colocation market is anticipated to grow significantly during the forecast period. 糖心vlog传媒 100 kW of energy is typically needed to power retail data centers, while wholesale customers usually need more than 100 kW, owing to their business scale. Many facilities, such as security provision, customer support, cooling facilities, etc., are provided by colocation suppliers.
- Typically, retail customers have many partners to maintain connectivity. Therefore, a diverse set of carriers with good speeds are necessary. Additionally, as retail data center providers work with more clients than wholesale providers, their facilities usually offer a multitude of networks and services. Retail providers offer various services, such as smart hands and remote hands, for technical assistance, managed services, and network monitoring. Therefore, resolving issues can be as simple as raising a service ticket. Such services help exploit various other benefits, such as locating data centers away from disaster-prone areas that can be remotely operated. Due to this remote hand's technology, tax benefits in different states can be used to avail certain tax benefits.
- Many new technologies, including 100% green data centers, have been deployed in retail colocation. Aruba SPA has built a 100% green data center facility. This facility uses underground flowing rivers to turn turbines, solar panels, and underground water pumped to the surface for cooling. The need for interconnectivity is also increasing, increasing the demand for retail colocation. It has been identified that the leading providers of colocation services offer as many as 230,000 interconnection possibilities. Many SME industries constitute a large part of the economy. Such SMEs can only afford part of the space for utility, as the IT staff and operations are included in this scale of operation.
- According to European Commission, the United Kingdom, the Innovation score in digitalization was 39.10. Since retail colocation facilities have become old and outdated, their customers are choosing to leave these facilities to find other, newer, multi-tenant data center providers. When retail colocation facilities lose customers, this presents itself in their customer churn metrics. Indeed, public data center companies report churn metrics quarterly, with higher churn implying that more customers are leaving.
London Data Center Industry Overview
The London Data Center market is semi-consolidated with many players like Colt Technology Services Group Limited, Digital Realty Trust Inc., Equinix, Inc., NTT Ltd, etc. The companies continuously invest in strategic partnerships and product developments to gain substantial market share. Some of the recent developments in the market are:
In February 2023, Colt Data Centre Services (Colt DCS) broke ground in London on a new data center complex. With a groundbreaking ceremony, the business announced the start of construction on its London 4 campus. The site, located in Hayes, will include two structures totaling 57MW. The five-story structures will have 18 data halls spread across 30,000 square meters (322,900 square feet). It will be the company's most significant UK location.
In January 2023, Vantage Data Centers, a major global operator of hyperscale data center campuses, announced today the creation of a 48MW GBP 500 million campus in London. In addition, on its existing Cardiff location, the business has erected a second 40MW data center. Vantage's London campus, located on nearly five acres (two hectares) in the PowerGateneighborhood of North Acton, an established data center community in the city's northwest, will eventually total 430,000 square feet (40,000 square meters) across two 24MW multi-story data centers. The first site, Vantage's 11th campus in EMEA, will open its doors to hyperscale customers and cloud providers in late 2024.
London Data Center Market Leaders
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Colt Technology Services Group Limited
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Digital Realty Trust Inc.
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Equinix, Inc.
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NTT Ltd
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Kao Data Ltd
*Disclaimer: Major Players sorted in no particular order
London Data Center Market News
- March 2024 - Schneider Electric, a frontrunner in the digital transformation of energy management and automation, unveiled its collaboration with NVIDIA. This partnership aims to enhance data center infrastructure and set the stage for revolutionary strides in edge artificial intelligence (AI) and digital twin technologies.
- June 2024 - Ada Infrastructure, recognized globally for its commitment to sustainable digital infrastructure and serving as the data center platform for GLP Capital Partners ("GCP"), has secured planning approval from the Newham Strategic Development Committee. This approval paves the way for the establishment of one of London's largest data center campuses. Marking Ada's premier project in the UK, the 210 MW Docklands data center campus is meticulously crafted with a focus on sustainability, safety, and security, all while being primed to accommodate the rising demands of AI workloads.
London Data Center Market Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. KEY INDUSTRY TRENDS
4.1 Smartphone Users
4.2 Data Traffic per Smartphone
4.3 Mobile Data Speed
4.4 Broadband Data Speed
4.5 Regulatory Framework
4.6 Value Chain Analysis
5. MARKET OUTLOOK
5.1 IT Load Capacity
5.2 Raised Floor Space
5.3 Number of Racks
6. MARKET SEGMENTATION
6.1 DC Size
6.1.1 Small
6.1.2 Medium
6.1.3 Large
6.1.4 Massive
6.1.5 Mega
6.2 Tier Type
6.2.1 Tier 1 & 2
6.2.2 Tier 3
6.2.3 Tier 4
6.3 Absorption
6.3.1 Utilized
6.3.1.1 Colocation Type
6.3.1.1.1 Retail
6.3.1.1.2 Wholesale
6.3.1.1.3 Hyperscale
6.3.1.2 End User
6.3.1.2.1 Cloud & IT
6.3.1.2.2 Telecom
6.3.1.2.3 Media & Entertainment
6.3.1.2.4 Government
6.3.1.2.5 BFSI
6.3.1.2.6 Manufacturing
6.3.1.2.7 E-Commerce
6.3.1.2.8 Other End User
6.3.2 Non-Utilized
7. COMPETITVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Colt Technology Services Group Limited
7.1.2 Digital Realty Trust Inc.
7.1.3 Equinix, Inc.
7.1.4 NTT Ltd
7.1.5 Kao Data Ltd
7.1.6 Telehouse (KDDI Corporation)
7.1.7 Virtus Data Centres Properties Ltd (ST Telemedia Global Data Centres)
7.1.8 4D Data Centres Ltd. (Redcentric plc)
7.1.9 Pulsant data centre
7.1.10 Iron Mountain Incorporated
7.1.11 Cyxtera Technologies, Inc.
7.1.12 Rackspace Technology Inc.
7.1.13 Vantage Data Centers
7.1.14 Serverfarm LLC
7.1.15 CyrusOne Inc.
7.2 Market share analysis (In terms of MW)
7.3 List of Companies
London Data Center Industry Segmentation
A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services.
The London data center market is segmented by dc size (small, medium, large, massive, mega), tier type (tier 1&2, tier 3, tier 4), absorption (utilized (colocation type (retail, wholesale, hyperscale), end user (cloud & IT, telecom, media & entertainment, government, BFSI, manufacturing, e-commerce)), and non-utilized). The market sizes and forecasts are provided in terms of volume (MW) for all the above segments.
| DC Size | |
| Small | |
| Medium | |
| Large | |
| Massive | |
| Mega |
| Tier Type | |
| Tier 1 & 2 | |
| Tier 3 | |
| Tier 4 |
| Absorption | |||||||||||||||||
| |||||||||||||||||
| Non-Utilized |
London Data Center Market Market Research Faqs
What is the current London Data Center Market size?
The London Data Center Market is projected to register a CAGR of 10.32% during the forecast period (2024-2029)
Who are the key players in London Data Center Market?
Colt Technology Services Group Limited, Digital Realty Trust Inc., Equinix, Inc., NTT Ltd and Kao Data Ltd are the major companies operating in the London Data Center Market.
What years does this London Data Center Market cover?
The report covers the London Data Center Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the London Data Center Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
London Data Center Market Industry Report
Statistics for the 2024 London Data Center market share, size and revenue growth rate, created by 糖心vlog传媒鈩� Industry Reports. London Data Center analysis includes a market forecast outlook to for 2024 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
