2022
9
UK Data Centres Market Report 2022
2022-05-17T04:04:50+01:00
OX1103529
1495
151196
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Report
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"The UK has one of the most developed data centre infrastructures in Europe. The growth in the market has been very strong reflecting the migration of workloads to the cloud…

UK Data Centres Market Report 2022

£ 1,495 (Excl.Tax)

Description

The UK Data Centres report identifies consumer attitudes towards data centre market analysis, hyperscale development, M&A activity in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the Data Centres market in the UK.

Current Market Landscape

The global technology giants use hyperscale data centres. COVID-19 served to accelerate digital programmes across industry and commerce, and cloud computing expanded accordingly, creating further growth in the demand for data centres. As the digital data volumes increase, there is an increasing reliance on technologies such as artificial intelligence and machine learning to provide rapid and accurate interpretation of that data. This, in turn, adds to the volume of data being generated.

  • 70% of data centres are leased from third-party operators.
  • 68% of consumers are worried about rising fuel costs, and almost as many were concerned about increases in food and drink prices.
  • By 2025, it is projected that 75% of enterprise-generated data will originate and be processed outside of traditional data centres or clouds.

The pandemic is still impacting supply issues for both new construction and the constant refurbishment of premises, and this is encouraging some vertical integration in a sector where M&A activity has long been a prominent feature.

Future Market Trends in Data Centres

While the current fuel-based inflation is impacting growth in most sectors, the data centre sector continues to expand with the digital element of business growing. Data centres are power voracious and have been addressing sustainability in novel ways for many years. The escalation of fuel prices will intensify such developments, with water-based cooling emerging as one major contributor.

Edge computing is growing and will provide the next stimulus to development, with the internet of things and 5G foremost amid the insatiable growth of data being created. These will become even more important in the long-term as the Internet of Things expands into areas such as driverless vehicles, and in the consumer sector, the emergence of the metaverse impacts demand.

Read on to discover more details or take a look at all of our UK Technology market research

Quickly understand

  • How market demand is changing after the extreme COVID-19 related growth.
  • How colocation coexists with hyperscale development.
  • What the next major market drivers will be.
  • Why the sector is so attractive to third-party investment and the high levels of M&A activity.
  • How the industry structure is developing.

Covered in this report

Brands: Equinix, Digital Realty, China Telecom, NTT GDC, China Unicom, China Mobile, CyrusOne, KDDI Telehouse, GDS, Global Switch, 21 Vianet, CoreSite, Cyxtera, Lumen, Flexential.

Expert analysis from a specialist in the field

This report, written by Terry Leggett, a leading analyst in the Technology sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The UK has one of the most developed data centre infrastructures in Europe. The growth in the market has been very strong reflecting the migration of workloads to the cloud and the cloud operators using third party suppliers. COVID-19 accelerated both the digital and cloud trend, so the short-term prospects are for sustained growth. This rapid expansion and the recurring revenue stream of the sector has proved highly attractive to third party investment. Technological trends such as the Internet of Things extending to controlling driverless vehicles and the metaverse are becoming ever closer promises to propel even greater expansion. Edge computing is already an established feature and it will form a key element of the longer term infrastructure.

Terry Leggett - Research AnalystTerry Leggett
Senior Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Market context
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for data centres
      • Figure 1: Data centre outlook, 2022-27
    • The market
    • A vibrant market
      • Figure 2: Market size for data centres, 2016-26
    • London – a vast and important market internationally
      • Figure 3: Country segmentation of data centres in the UK, 2022
    • Colocation – used by every sector
      • Figure 4: Industry segmentation of core data centre usage, 2020 (number of cabinets)
      • Figure 5: Industry segmentation of edge data centre usage, 2020 (number of cabinets)
    • The major drivers
    • Companies and brands
    • The UK role in a global market
      • Figure 6: Role of the UK in the European data centre industry, 2022 (number)
    • So attractive to investors
  3. Issues and Insights

    • COVID-19 sets trends
    • Growth also brings closures
      • Figure 7: Monthly cost of a data centre
  4. Market Size and Performance

    • A well-established market
      • Figure 8: Market size for data centres, 2016-21
    • Market trends
    • The underlying features
    • Hyperscale development
  5. Market Segmentation

    • Industrial segmentation
      • Figure 9: Industry segmentation of core data centre usage, 2020 (number of cabinets)
      • Figure 10: Industry segmentation of edge data centre usage, 2020 (number of cabinets)
    • Geographic distribution
    • Overview
      • Figure 11: Country segmentation of data centres in the UK, 2022
    • England
      • Figure 12: Regional segmentation of data centres in England, 2022 (number)
      • Figure 13: City concentration of data centres in England, 2022 (Number)
    • Scotland
      • Figure 14: Data centre locations in Scotland, 2022 (Number)
    • Wales
      • Figure 15: Data centre locations in Wales, 2002 (number)
    • Northern Ireland
  6. Market Forecast

    • Strong continued growth
      • Figure 16: Data centre outlook, 2022-27
    • A period of maturity before the storm
      • Figure 17: Market forecast for data centres, 2021-26
    • Market drivers and assumptions
      • Figure 18: Key drivers affecting MBD’s market forecast, 2016-26
    • Forecast methodology
  7. Market Drivers

    • Macro-Economic Issues
    • The conflict in Ukraine will hurt the UK economy
    • GDP reached pre-pandemic levels in November 2021…
    • …but the post-COVID-19 bounce-back will be followed by a period of slower growth
    • Employment has held up better than expected
    • Inflation is the key concern for 2022 for consumers, brands and the economy
    • Consumers’ financial wellbeing has slipped from its recent high point…
      • Figure 19: Household financial wellbeing index, 2016-22
    • …and concerns over inflation are coming to the fore
      • Figure 20: Consumer concerns about household finances, 2021-22
    • Digitisation continues to grow
    • Global expansion
      • Figure 21: Worldwide internet usage, by region, 2021 (millions and %)
    • UK expansion
      • Figure 22: UK adult internet usage, 2013-20
      • Figure 23: Percentage of companies and charities with digital services, 2021
    • COVID-19 accelerated the trend
      • Figure 24: Location of working adults, 2020-21
    • The impact of cloud and edge computing
    • Continued challenges
      • Figure 25: PUE of a data centre
  8. Industry Structure

    • Global structure
      • Figure 26: Leading global data centre operators, 2021
    • Huge M&A deals attract private equity
    • The UK role in Europe
      • Figure 27: Role of the UK in the European data centre industry, 2022 (number)
    • The UK industry development
      • Figure 28: Development of UK data centres, 2016-22
  9. Company Profiles

    • Digital Realty Trust
    • Activity
    • Performance
      • Figure 29: Revenue development of Digital Realty, 2016-21
      • Figure 30: Segmentation of Digital Realty revenue, 2021
    • Strategy
    • Equinix
    • Activity
    • Performance
      • Figure 31: Equinix global revenues, 2016-21
      • Figure 32: Segmentation of Equinix global revenues, 2021 ($ million)
      • Figure 33: Financial development of Equinix (UK), 2016-20 (£ million)
    • Strategy
    • iomart Group
    • Activity
    • Performance
      • Figure 34: Financial development of iomart Group, 2017-21 (£ million)
      • Figure 35: Segmentation of iomart Group revenues, 2019-21 (£000)
    • Strategy
    • Pulsant Group
    • Activity
    • Performance
      • Figure 36: Financial development of Pulsant Group Holdings, 2016-20 (£ million)
    • Strategy
    • Telehouse International Corporation of Europe/KDDI
    • Activity
    • Performance
      • Figure 37: Financial performance of Telehouse International Corporation of Europe, 2017-21 (£ million)
    • Strategy
    • Vantage Data Centers (including Next Generation Data)
    • Activity
    • Performance
      • Figure 38: Financial development of Next Generation Data, 2015-19 (£ million)
    • Strategy
  10. Appendix – Data Sources, Abbreviations and Supporting Information

  11. Appendix: Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 39: Data centre market forecast, 2021-26 (£ billion)
    • Market drivers and assumptions

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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