The UK data center market is set to expand at a robust CAGR of 22.12% from 2025-2031. This growth is propelled by increasing digital transformation efforts, strong investment from global cloud service providers like Amazon, Microsoft, and Google, and the rising demand for AI and high-performance computing infrastructure. With around 243 operational data centers and 82 new facilities under development, the market is also driven by sustainability initiatives, such as repurposing waste heat. Notably, emerging policies focus on enhancing data privacy, blockchain, and AI technologies. Insight into colocation, hyperscale, and enterprise investments offers comprehensive market perspectives.
Dublin, April 27, 2026 (GLOBE NEWSWIRE) — The “UK Data Center Market – Investment Analysis & Growth Opportunities 2026-2031” report has been added to ResearchAndMarkets.com’s offering.
The UK data center market is expected to grow at a CAGR of 22.12% from 2025 to 2031.
The report provides a detailed breakdown of UK data center market investments, categorized across IT infrastructure, power systems, cooling solutions, and general construction services, with accompanying market sizing and forecasts. It also includes a comprehensive analysis of the latest industry trends, growth rates, potential opportunities, growth restraints, and overall market outlook. In addition, the report profiles major participants in the sector, offering business overviews and product insights for leading IT infrastructure providers, construction contractors, support infrastructure vendors, and investors active in the UK data center industry.
The UK consists of around 243 operational third-party data centers, of which around 74 data centers are located in the Greater London County. The country is also witnessing the development of around 82 new data centers, which are either in planned or under construction stages. The cloud market in the UK is projected to experience strong growth over the forecast period, driven by the continuous investments from major global cloud service providers such as Amazon Web Services, Microsoft, Google, Oracle Cloud, and Tencent. For instance, in December 2025, Amazon Data Services, a subsidiary of Amazon Web Services, acquired a former coal plant site in the UK from RWE for approximately $265 million to develop a new data center.
The rack density of traditional data center racks is inadequate for supporting modern AI and high-performance computing workloads. Therefore, data center operators are shifting toward high-density infrastructure, deploying racks exceeding 100 kW to efficiently handle advanced computing requirements. For example, the KLON-03 facility being developed by Kao Data in Harlow is designed to support rack power densities of over 130 kW per rack.
