Data Centre Constructions Cloud(based) Silver Lining

Data Centre Constructions Cloud(based) Silver Lining

The insight ascertained for the Data Centres Construction Market Report has revealed that since 2015, the data centre construction market has grown from around £1 billion at installed values to £1.24 billion in 2019, this is largely underpinned by high levels of take-up in the co-location sector, with a growing adoption of Cloud computing technology. Increasing Cloud take-up is supporting the growth of this commercial and colocation sector, as it reduces the need for businesses to own and maintain their own IT infrastructure.

However, overall growth rates have been constrained by declining levels of investment in public sector data centres. This has been primarily because of the Government’s long-term Cloud-first policy which favours outsourcing to wholesale and co-location providers in order to reduce expenditure on operating its own data centres.

The impact of the covid-19 outbreak is expected to severely hamper growth in data centre construction output in 2020. However, once the pandemic is over, strong growth will resume, underpinned by the underlying factors driving up greater IT and Internet usage. Demand for data storage, processing and storage is being driven by the increasing levels of online activity, huge growth in the number of connected devices and changes in the way online services are delivered will again only strengthen the usage of colocation as businesses adapt to where the new normal will take us.

London and the M25 region remains the largest data centre cluster, although recently there has been rapid growth elsewhere, with new clusters in Wiltshire, Leicestershire, South Wales and Cambridgeshire. Manchester and Scotland are also becoming more established data centre markets. This been driven by a combination of lower costs, compared to the M25 region and improvements in technology.

The data centre contracting market is very fragmented. While most large M&E contracting businesses are key players, companies involved in data centre construction range from major building contracting groups and commercial developers, to data centre specialists and operators, modular building manufacturers and IT equipment suppliers.

Data Centre Construction Market Report – UK 2020-2024 including Covid-19 Insight

The 5th edition of the report Data Centre Construction Market Report - UK 2020-2024 values the construction market for data centres and provides ...

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