Data centre lighting market set to more than double

Whitecroft Lighting expects the UK market for data centre lighting to more than double to about GBP £130 million by 2030, making it larger than several established segments of the commercial lighting market.

The projection comes as investment in UK data centre construction rises alongside demand for AI infrastructure. Whitecroft estimated the data centre lighting market at about GBP £54 million in 2024, or roughly 6% of the UK commercial lighting market. It also forecast the wider UK data centre development and construction market to grow from around GBP £13 billion in 2024 to GBP £32 billion by 2030.

On that basis, data centre lighting would account for 14% of today's UK commercial lighting market by the end of the decade. Whitecroft said that would put the category ahead of commercial office lighting and entertainment and leisure, both at 13%, and education at 11%, citing market forecasts from Barbour ABI.

The figures highlight a new source of demand for manufacturers that have traditionally supplied offices, public buildings and transport hubs. At the same time, Whitecroft argued that suppliers entering the sector face different commercial pressures because lighting accounts for a smaller share of overall project costs than in more conventional buildings.

Richard Williams, Head of Strategic Projects at Whitecroft Lighting, said the scale of investment meant manufacturers could not afford to overlook the segment. "The scale of investment going into data centres is creating a significant new market for UK lighting manufacturers. However, it also represents a new and very different commercial and technical environment," Williams said.

He said the broader construction pipeline also indicated the size of the opportunity. "As a big manufacturer, it is impossible to ignore the value of a market forecast to reach £32 billion by 2030. To put that into perspective, that is three times more than this year's NHS estates capital investment budget," Williams said.

Smaller Cost Share

Whitecroft said its analysis found that lighting plays a much smaller role in data centre budgets than in offices and similar projects. That changes how lighting companies must compete for specifications and supplier positions on major schemes.

Williams said lighting accounts for a far smaller share of total construction costs in data centres than in traditional buildings such as office space. "Our assessments indicate that lighting is 60% less valuable as a proportion of the overall cost of data centre construction when compared to more traditional buildings, such as commercial office space.

"Suppliers must understand that data centre operators are grappling with huge new systemic challenges, such as access to the grid, renewable energy, and water for cooling.

"In the face of these major issues, data centre designers need a clear reason to switch suppliers. That means manufacturers such as Whitecroft must keep innovating to create clear reasons for change.

"The momentum behind this growth is already clear. More than £6 billion of investment in the UK's AI economy was announced during London Tech Week alone, including major commitments to expand AI computing and data centre capacity," he said.

That assessment points to a market where specialist suppliers may need to demonstrate value through installation methods, resilience requirements and site-wide delivery, rather than rely on volume alone. Data centres differ from offices and schools because operators place a premium on uptime, security and standardisation across large campuses.

Whitecroft said it is drawing on experience from other critical infrastructure schemes as it competes in the segment. The company manufactures in Greater Manchester and has previously worked on projects including Hinkley Point C, where it supplied 40,000 LED luminaires, and Manchester Airport's Terminal 2 rebuild and refurbishment, where it supplied 25,000 lights worth GBP £3 million.

European Work

The manufacturer said it is already delivering data centre projects in Germany and Portugal. Whitecroft is part of the Fagerhult Group, which brings together 13 specialist lighting brands across Europe, and said technical and logistical cooperation within the group is helping it serve cross-border projects, particularly alongside Veko Lightsystems in the Netherlands.

Williams said that experience is shaping its approach to the sector. "Whitecroft Lighting is drawing on its increasing knowledge of large-scale, critical infrastructure projects, particularly where security and resilience are key considerations. Our factory-assembled data hall lighting and ability to deliver a complete lighting solution across an entire data centre campus is proving attractive, and we are currently delivering projects in Germany and Portugal," he said.