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Colocation Facilities in the UK Industry Data and Analysis
Colocation providers have become essential for the finance and manufacturing sectors as they navigate the uncharted seas of digitalisation. These companies are grappling with growing demands for data storage, fuelled by remote work and advanced digital products. Colocation providers have expanded their vessel size by adding more data centres to their fleet to quench this demand. Higher demand and enhanced operations from colocation providers have driven revenue growth over the past five years. Revenue is expected to grow at a compound annual rate of 2.6% over the five years to 2025-26, reaching £3 billion.
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What's included in this industry analysis
IBISWorld's research coverage on the Colocation Facilities industry in the United Kingdom includes market sizing, forecasting, data and analysis from 2016-2031. The most recent publication was released January 2026.
About this industry
What's this industry report about?
The Colocation Facilities industry in the United Kingdom operates under the SIC industry code SP0.086. Companies in this industry own and operate data centres that primarily lease equipment space to customers. They also offer auxiliary services, including power management, security and network neutrality. Customers generally use industry services as off-site data storage to back up their data or to enable them to focus on other parts of their business. Related terms covered in the Colocation Facilities industry in the United Kingdom include power usage effectiveness (pue), bandwidth, internet protocol address, big data, uptime and artificial intelligence.
What's included in this industry?
Products and services covered in Colocation Facilities industry in the United Kingdom include Single server space, Server rack services and Server cage or suite.
What companies are included in this industry?
Companies covered in the Colocation Facilities industry in the United Kingdom include Equinix (UK) Ltd, Telehouse Holdings Ltd and Digital Realty Trust Inc.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Colocation Facilities industry in the United Kingdom.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Colocation Facilities industry in the United Kingdom.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Colocation Facilities industry in the United Kingdom.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Colocation Facilities industry in the United Kingdom. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Colocation Facilities industry in the United Kingdom. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Colocation Facilities industry in the United Kingdom. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Colocation Facilities industry in the United Kingdom. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Colocation Facilities industry in the United Kingdom.
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Frequently Asked Questions
What is the market size of the Colocation Facilities industry in the United Kingdom in 2026?
The market size of the Colocation Facilities industry in the United Kingdom is £3.0bn in 2026.
How many businesses are there in the Colocation Facilities industry in the United Kingdom in 2026?
There are 146 businesses in the Colocation Facilities industry in the United Kingdom, which has grown at a CAGR of 9.9 % between 2021 and 2026.
How may import tariffs affect the Colocation Facilities industry in the United Kingdom?
The Colocation Facilities industry in the United Kingdom is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Colocation Facilities industry in the United Kingdom?
The Colocation Facilities industry in the United Kingdom is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Colocation Facilities industry in the United Kingdom grown or declined over the past 5 years?
The market size of the Colocation Facilities industry in the United Kingdom has been growing at a CAGR of 2.6 % between 2021 and 2026.
What is the forecast growth of the Colocation Facilities industry in the United Kingdom over the next 5 years?
Over the next five years, the Colocation Facilities industry in the United Kingdom is expected to grow.
What are the biggest companies in the Colocation Facilities industry in the United Kingdom?
The biggest companies operating in the Colocation Facilities industry in the United Kingdom are Equinix (UK) Ltd, Telehouse Holdings Ltd and Digital Realty Trust Inc
What does the Colocation Facilities industry in the United Kingdom include?
Single server space and Server rack services are part of the Colocation Facilities industry in the United Kingdom.
Which companies have the highest market share in the Colocation Facilities industry in the United Kingdom?
The company holding the most market share in the Colocation Facilities industry in the United Kingdom is Equinix (UK) Ltd.
How competitive is the Colocation Facilities industry in the United Kingdom?
The level of competition is moderate and increasing in the Colocation Facilities industry in the United Kingdom.
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