The UK data center colocation market was valued at USD 2,085.8 million in 2024 and is projected to grow from USD 2,437.5 million in 2025 to USD 3,781.8 million by 2028, representing a CAGR of 15.8% during the forecast period of 2025-2028.
The UK is considered the most prime region for data center colocation services in Europe, which is attributed to the presence of major data center facilities in the country along with the diverse industrial and commercial landscape prevalent in the nation which necessitates the demand for efficient and reliable data storage and processing facilities.
Prominent providers comprising of Equinix, Digital Realty, NTT, VIRTUS, Ark Data Centers, Iron Mountain, Inc., Vantage Data Centers and many others offering colocation services to a multitude of business enterprises and commercial domains, thereby leading to a boost in growth and market development prospects for data center colocation industry in the UK.
The surge in the demand for efficient and secure remote data storage and processing across telecommunications, finance, healthcare, e-commerce, transportation, government services and many other end-use sectors are driving the market growth for reliable and secure data center colocation services in the region.
Moreover, London remains the largest data center colocation hub in the UK. It is poised to become poised to become the first European data center market to reach 2GW in operational capacity over the next 3-5 years as it captures 1.44GW of operational capacity and a pipeline of 1.5GW set to be delivered (265MW under construction, 1,260MW planned) as reported by Cushman & Wakefield, showcasing widespread growth prospects for the data center colocation market in the UK.
Additionally, the designation of data centers as critical national infrastructure by UK government with emphasis over reducing environmental impact supported by implementation of green energy and supported by the adoption of ambitious net-zero targets - 2050 for powering the data center sites and ensuring cybersecure resilience in data center industry creates widespread market growth development avenues for data center colocation market in UK. is fueling the market development prospects for data center colocation market in the UK.
Become a yearly member and gain full access to all current and future reports, industry updates, and exclusive research tools. Ideal for analysts, strategists, and decision-makers looking to stay informed year-round.
As a real estate investor, DCPulse’s insights into facility trends and regional demand are invaluable for making informed decisions.
he depth of analysis and reliable sourcing at DCPulse give us confidence in navigating complex regulations and supplier dynamics.
DCPulse’s reports have been a game-changer for our strategic planning. Their data on cooling solutions and market demand helped us optimize our data center expansion.