Without a Clear Data Strategy, Business AI Growth Could Fail
As the UK remains the largest data hub in Europe, boasting more than 500 data centres, the country is being urged to consolidate its strategy to meet this growing demand.
Data centres are providing the power and security required for the processing power we rely on every day, from personal handheld devices to the vast computing demands of artificial intelligence (AI). However, the UK is grappling with a range of issues that, if not addressed, will lead the country to lose its competitive edge in digital transformation.
In this midst of the global race for power and AI, the UK classified data centres as critical national infrastructure (CNI) in a surprising move to demonstrate the importance of such facilities in running and maintaining national digital infrastructure.
Awarding data centres this status is designed to boost enterprise confidence in the industry, which the UK hopes will improve international expansion investments.
Rising competition puts strain on data centres
The UK requires a strong strategy to meet such widespread demand for data centres, otherwise it risks losing its advantage in the global AI race.
Whilst the nation is currently one of the AI adoption leaders, the government’s decision earlier in 2024 to shelve its £1.3bn (US$1.6bn) funding plan for technology and AI projects left business leaders reeling at how the country will continue maintaining its critical digital infrastructure moving forward.
As reported by Sky News, high land prices, increased competition for grid connections and resistance from local residents have all raised the premium for data centres across the UK. This has led some companies to consider locations outside of London and the South East.
Significantly, this includes Kao Data, which recently announced work has commenced on the construction of its new £350m (US$457m) data centre in Greater Manchester. The facility will be designed to develop and operate AI and advanced computing, which comes as Greater Manchester is expected to emerge as a leading UK and Europe technology hub.
Manchester Mayor Andy Burnham said: “As we continue our mission to ensure world-class digital infrastructure for the region, this new data centre will play a pivotal part in our fast-growing and diverse technology ecosystem, reinforcing our position as a global leader in AI and data centre capacity.
“This data centre can also raise aspirations and opportunities for young people, providing a window on the GM economy that they’ve never had before. Kao Data’s plans to engage with schools and colleges and support technical career pathways for local students through the Greater Manchester Baccalaureate is exciting, and I’m looking forward to seeing those plans become reality.”
Kao Data hopes to benefit from this strategic location, which includes access to cutting-edge connectivity, an industrialised power grid and a tech-savvy workforce that is adept in AI development. It also hopes to help cement the city of Manchester as a growing hub for digital infrastructure, providing one of Europe’s most advanced and sustainable hosting environments powered by 100% certified renewable energy.
Digital growth at what cost?
More broadly in the UK, the new Labour government has promised to back future data centre developments across the country. However, there are public concerns over the environmental impact of facilities that are not constructed with sustainability in mind, with residents feeling that such developments will negatively impact their local communities and biodiversity.
Significantly, there are anxieties over green belt land, which is a ring of protected land in the UK designed to be permanently green to prevent urbanisation and maintain areas for food growing, leisure and forestry.
A patch of green belt land has been subject to debate in the South East of England, as a property developer currently has it earmarked for a data centre facility. Planning permission was rejected by the relevant local council because of the loss of this green belt land.
In response, a Ministry for Housing, Communities and Local Government spokesperson said, as reported by Sky News: “Our reforms to the planning system will make it easier to build the key infrastructure this country needs - such as data centres - securing our economic future and giving businesses the confidence to invest.
“Development on the green belt will only be allowed where there is a real need and will not come at the expense of the environment.”
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