- UK needs a data centre strategy for AI growth
- Expansion hindered by high costs and grid competition
- Green belt debates spotlight environmental vs. tech needs
The UK must devise a strategy to fulfil the rising demand for data centres or risk losing its lead in the race to create artificial intelligence (AI).
The digital economy relies heavily on data centres and warehouses that store CPUs that power cloud computing. They provide the power, connections, and security required for the massive processing power that underpins everything from personal device browsing to AI learning.
The United Kingdom is Europe’s largest data hub, with over 500 data centres, most located in the South East.
Slough in west London is the industry’s original foundation, owing to its closeness to transatlantic links and the City of London, where financial institutions and banks were first the largest users of computing power.
Last month, the government designated data centres as ‘essential national infrastructure’, putting them online with power plants and railways. Still, the industry believes a broader strategy is needed to satisfy the rising demand for power-hungry AI gadgets.
High land prices, rivalry for grid connections, and opposition from residents have put a premium on further expansion in the southeast, prompting some companies to explore beyond the industry’s traditional base.
Kao Data, which has an expanding site in Harlow, Essex, is among companies exploring beyond the South East. This week, it broke ground on a £350 million expansion in Stockport, Greater Manchester.
Kao’s chief commercial officer, Spencer Lamb, stated that the UK industry is at a turning point.
“The difficulty is in terms of supply capacity and building data centre buildings to meet the demands of AI. “Whether we as a country provide the environment for it is the big question,” he remarked.
“If we want to be a part of the global AI opportunity, we must deploy these resources in viable, sustainable places with development potential. We didn’t have a plan when cloud computing first began ten years ago, and we ended up where we are today, effectively absorbing all of the power in the west of London.
Now is the time to develop a UK-wide data centre strategy and begin deploying these facilities throughout the country, distributing them equally.
Kao’s Manchester expansion takes advantage of an existing industrial site (it will replace a concrete factory) and the availability of a grid connection, both of which are critical in a famously power-hungry industry whose facility size is measured in megawatts rather than square feet. A 100MW data centre uses the same amount of electricity as 100,000 houses or roughly the size of Ipswich.
Mr Lamb believes it is a model the government should follow. A realistic opportunity would be to designate two or three locations in the UK with access to power as data centre planning zones, where local authorities understand what a data centre is, are welcoming, and we can develop these buildings quickly and easily, removing much of the bureaucracy that currently exists.
The Stockport facility also supports Greater Manchester Mayor Andy Burnham, who sees data as an important infrastructure for boosting economic development in the North West.
“This is now important national infrastructure, as declared by the new government, and it makes logical that all of that capacity is distributed around the country. We need to see the emergence of a large-scale data centre industry in the north of England,” Mr Lamb stated.
The difficulty of future expansion in the South East can be seen on the outskirts of the growing community of Abbotts Langley in Hertfordshire, where a section of green belt has become a flashpoint in the argument over data centres and the new government’s commitment to growth.
The 31-hectare land, originally grazed by cows that generated milk for the nearby Ovaltine factory was purchased by property developer Greystoke Land and set aside for a data centre.
The local planning authority, Three Rivers Council, denied it due to the loss of the green belt. Still, on her first day in office, Angela Rayner, the housing minister, “called in” the application, kicking off a procedure that will likely result in her overruling the local authority.
Labour promised to support development in government, but more was needed to increase its popularity. In addition to concerns about the environmental impact of a data centre, neighbours say the development will eliminate the only barrier between the hamlet and the freeway.
Stephen Giles-Medhurst is the Liberal Democrat leader of Three Rivers Council, which is made up of 76% green belt.
I’m not a total nimby; I can see which way the wind is blowing, but we’ll make the strongest argument possible to say no to this development because it’s an improper site that will cause significant harm to the green belt.
Seize the opportunity: Sign up for Webull UK and receive free shares!
Ironically, we have certain brownfield lands that landowners refuse to release and cannot be purchased by compulsory purchase; let us address this and return it to public hands.
However, if overturned, we will demand infrastructure for Abbots Langley and Three Rivers.
A spokeswoman for the Ministry of Housing, Communities, and Local Government stated: “Our planning system reforms will make it easier to build the critical infrastructure this country requires, such as data centres, securing our economic future and giving businesses confidence to invest.”
Development in the green belt will only be permitted if there is a genuine need and will not harm the ecosystem.
Bankers chosen by private equity investor to prepare country club group sale
