UK Cloud Storage Service Market Analysis, Size, and Forecast by Type, Deployment Model, Organization Size, Subscription Model, and Industry: 2019-2033

UK Cloud Storage Service Market Outlook

The UK cloud storage service market is experiencing a significant phase of expansion, fuelled by strategic public sector digital transformation, rising enterprise data volumes, and mounting demand for sovereign and scalable cloud infrastructure. As per David Gomes, Manager – IT,  the market is projected to reach US$ 14.0 billion by 2033, during the forecast period, supported by government-led digital migration programs and the increasing complexity of data regulation.

This momentum is underscored by a series of landmark investments, including the UK government’s £366 million initiative to migrate its core systems to the cloud, enhancing agility and resilience across departments such as HMRC, DWP, and NHS Digital supporting data.

Enterprises across sectors are actively adopting hybrid and multi-cloud architectures that prioritize agility, compliance, and data localization. The demand is particularly strong in finance, healthcare, and legal sectors, where high-throughput storage, granular access control, and real-time backup capabilities are essential.

Sovereign cloud initiatives have taken centre stage, most notably SAP’s launch of the UK Sovereign Cloud, which offers data residency assurance and supports regulated workloads within British jurisdiction—a critical requirement for GDPR and evolving UK-specific data standards citation.

UK-based organizations are transitioning away from traditional hardware-bound file and object storage systems toward scalable, API-accessible cloud solutions that offer predictable pricing, automated tiering, and built-in disaster recovery.

In December 2024, Wasabi Technologies announced expanded storage and data management offerings for UK customers, positioning itself as a competitive alternative to hyperscale’s by offering flat-rate, high-performance cloud object storage with no egress fees.

This appeals to SMBs and mid-market companies managing increasing volumes of unstructured data such as video, medical images, and legal documents supporting data: Wasabi UK Expansion – source.

Government contracting is also reshaping demand. In early 2025, the UK’s Department for Environment, Food & Rural Affairs (DEFRA) issued a £2.27 billion procurement notice for hosting and storage services, emphasizing scalable, secure, and energy-efficient solutions across a five-year term. This signals the state's ongoing shift toward cloud-native infrastructure to support environmental analytics, geospatial data processing, and digital resource planning supporting data.

Additionally, the government awarded a £1 billion contract to accelerate cloud adoption across departments, reinforcing the criticality of storage services as a foundation for public sector modernization source.

The cloud storage market in the UK is also witnessing rapid technological advancement in areas such as AI-augmented storage tiering, serverless data lakes, and cold storage optimization. These innovations are particularly relevant for media & entertainment, life sciences, and research institutions, where petabyte-scale data must be accessed with minimal latency and total cost of ownership.

Major cloud players—such as Microsoft Azure, AWS, and Google Cloud—continue to invest in expanding UK-based availability zones, with integrated file, block, and object storage offerings tailored for industry-specific needs.

Looking ahead, the convergence of edge computing, AI workloads, and zero-trust architecture will drive enterprises to adopt cloud storage services that balance security, flexibility, and operational efficiency. Enterprise IT leaders are increasingly seeking providers that offer modular, interoperable storage solutions with transparent SLAs, customizable security frameworks, and seamless data mobility across platforms.

As the UK strengthens its post-Brexit digital sovereignty policies, vendors that align with compliance frameworks like Cyber Essentials, ISO 27001, and NCSC recommendations will command strategic preference.

Authors: David Gomes (Manager - IT)

*Research Methodology: This report is based on DataCube’s proprietary 3-stage forecasting model, combining primary research, secondary data triangulation, and expert validation. [Learn more]

UK Cloud Storage Service Market Scope