AI Data Centre Boom: UK Government Poised for Growth Plans
The UK government is gearing up for massive data centre growth.
According to data centre specialists Onnec, 89% of data centre applications have been approved in 20 of the biggest UK cities. However, the company warns that a lack of holistic design and a focus on London as a major hub could result in data centres being developed that are unable to deliver on the country’s needs.
Research finds that local authorities across the UK have overwhelmingly greenlit planning permission for data centre projects.
- 3 out of 88 data centre applications have been declined
- 5 applications were withdrawn
- East Havering Data Centre Campus is listed as ‘undecided’
“While not every project will be at the scale of East Havering, the data shows a willingness from local authorities to invest and support data centres, with many already aligned with the government’s strategy to ride the wave of AI to supercharge economic growth and productivity,” comments Matt Salter, Data Centre Director at Onnec.
The three projects that were declined were all in the city of Sheffield, with the reasons being that proposals were “poor quality design”, “visually unattractive” or “inappropriate developments which would cause harm to the openness of the Green Belt”, in addition to “out of keeping with the character and quality of the wider landscape.”
The UK’s relationship to data centres
The UK has experienced an overhaul in its relationship with data centres in 2024, particularly after the country classified data centres as critical national infrastructure in September. In particular, the government has pledged to review rejected planning decisions for various sites up and down the country, which is part of its wider drive for economic growth.
- The UK government has promised £6.3bn (US$8bn) of global investment in UK data centres
These sites stand to provide computing data and data storage needed to give the UK the infrastructure required to train and deploy AI technologies.
With the Autumn 2024 budget announcement in late October 2024, the UK government is doubling down on its plans to make the country more of a hub for cutting-edge technology advancement. It is continuing to align its initiatives with its ‘modern industrial strategy’ to become a leader in green digital transformation.
Such a promise hopes to improve access and quality of digital systems and services, particularly in underserved areas. Particularly as the global AI race continues, data centres are being increasingly seen as critical for driving AI growth.
“The UK risks losing ground in the race for AI supremacy if data centres aren’t built to last.”
“The UK has recognised that to get ahead the right infrastructure must be in place,” Matt explains. “However, the rejections in Sheffield show more thought must be given to design to ensure sites are appropriate, adhere to local requirements and serve the local community.
“Data centres can become the new oil for regions and cities, but only if they are planned holistically – this means considering every aspect of the data centre, instead of focusing solely on factors such as power and cooling.”
Moving to support more regional developments
Onnec says how the UK government has been focused on supporting and protecting a data centre industry that is powering the digital economy, and is crucial to AI development.
Failing to take a holistic approach to data centre development could result in sites that are unable to meet demand, or UK needs, could need an expensive retrofit or be unsuitable for future use altogether.
“The UK risks losing ground in the race for AI supremacy if data centres aren’t built to last,” Matt adds. “Government support will only drive further investment and support for UK data centres.
“However, this investment must move beyond London – already the biggest data centre market in Europe – to ensure the whole country benefits, and to help overcome power and sustainability challenges facing the London market.
“Taking a country-wide focus will help kick start local economies, drive broader digital skills, and give every UK region a chance to compete and be part of the digital infrastructure foundations the UK needs to meet rising AI workloads and deliver economic growth.”
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