At Equinix’s LD6 data centre, Mike Oxborrow, a senior sales engineer, highlights the stringent security measures required for entry, including biometric scans. This facility is one of six Equinix sites in the area, serving as a crucial hub for London’s financial institutions. The demand for data centres is surging, driven by the exponential growth of AI and cloud computing. With the UK government recently designating data centres as ‘national critical infrastructure,’ these vast facilities are becoming more essential than ever.
Harro Beusker, CEO of nLighten, a data centre developer, states, ‘The boom is already here. Over the last 25 years, IT has grown more important, and now companies are investing more, even beyond economic cycles.’ This sentiment is supported by Amazon’s recent announcement of an £8 billion data centre investment in the UK, which promises 14,000 new jobs. Additionally, Global Infrastructure Partners and Microsoft have launched a $30 billion global fund to support AI-driven data centre projects. Investors are drawn to this sector due to its high capital requirements and substantial barriers to entry.
Data centres are no longer confined to urban environments. Regional hubs are becoming increasingly attractive, with Newcastle emerging as a key location. Companies like Stellium are building data centres here, attracted by lower land and staffing costs while maintaining connectivity to undersea fibre-optic cables. AI technology further enhances the viability of these regional centres, as it is less reliant on the low-latency demands typical of traditional cloud computing.
However, the rapid expansion of data centres presents significant challenges. These facilities are power-hungry, and their electricity needs are expected to increase six-fold over the next decade. Balancing these energy demands with sustainability goals is a critical issue for the industry.
Nevertheless, the UK is at the forefront of this data centre revolution. From Slough to Newcastle, these facilities are driving technological change, creating regional job opportunities, and prompting major infrastructure investments across the country.
The future of data centres in the UK is promising, albeit with challenges that need to be addressed. The rise of AI-fuelled facilities is not only driving technological advancement but also significantly impacting regional economies and job markets. As this sector continues to expand, it will be crucial to balance growth with sustainability.