The UK is experiencing a significant surge in data centre construction, driven by a combination of technological advancements, strategic government initiatives, and substantial private investments from some of the world’s top companies. This boom is reshaping the UK’s digital infrastructure landscape and positioning it as a pivotal player in the global data economy.
There has no doubt been an increased interest in the performance of the UK’s economy following Brexit and with a new Labour government in place following 14 years of Tory leadership, the policies, initiatives and strategies are under the microscope. Studies from institutions like the Bank of England and the London School of Economics estimate that Brexit has reduced GDP by 4–5% compared to a scenario where the UK had remained in the EU. One area that is bucking this trend however is the investment in digital technology FDI projects where Europe experienced a 19% drop in 2023 and the UK saw an 8.9% increase, securing 255 projects and accounting for over a quarter of all European digital tech FDI.
So what has driven this boom? There has been rapid adoption and increasing demand for artificial intelligence (AI) and cloud computing that has acted as a primary catalyst. AI applications require substantial computational power and storage capabilities, which necessitates the development of advanced data infrastructure.
In 2024, planning applications for data centres in the UK rose by over 40% with the likes of Microsoft announcing a £2.5 billion investment aiming to double the country’s AI infrastructure capacity by 2026. Similarly, Amazon Web Services (AWS) committed £8 billion to establish data centers supporting customers in London and western England, a move expected to contribute £14 billion to the UK’s GDP between 2024 and 2028.
Recognising the strategic importance of data centers, the UK government designated them as “critical national infrastructure” in September 2024 which opened the door to streamline planning approvals and attract global investments. This was further bolstered by the acceptance of all 50 recommendations of the AI Opportunities Action Plan, aiming to widely adopt AI across the public sector and expedite planning consultations. The establishment of AI Growth Zones, such as the one in Oxfordshire, is part of this initiative, focusing on accelerating planning processes and enabling access to the energy grid.
In the global AI race the UK is positioning itself strongly by ensuring the necessary infrastructure is in place to support the latest technological advancements. It is also making smart moves with repurposing its old industrial sites with the former Blyth power station having planning approval for a new £10 billion hyperscale data centre over 540,000 square metres. Similarly, Tritax Big Box REIT is constructing a large data center near Heathrow Airport, a three-story, 448,000 sq ft facility costing approximately £365 million. Vantage Data Centres plans to transform the former Ford car factory in Bridgend, Wales, into one of Europe’s largest data center campuses, investing over £12 billion and creating over 10,000 local construction jobs over the next decade.
The UK’s cooler climate and access to renewable energy sources also make regions like Scotland and Northern England attractive for sustainable data center development. For example the Scottish government has identified 20 prime sites for green data centers, aiming to leverage the area’s potential for wind energy and cooler temperatures to reduce operational costs and environmental impact.
The UK is also fortunate to have some of the world’s best contractors to choose from, many of which have valuable experience and specialise in constructing large and complex data centres. The most successful of these utilise construction management, commissioning and turnover software like EIDA that ensures commissioning teams have continuous access to construction data, enabling smoother project handovers and faster system startup.
Against a backdrop of declining global FDI, the UK’s data centre sector continues to thrive, driven by strategic investment, government backing, and a strong national foundation with inherent advantages that makes it a leading hub for digital infrastructure and one poised for continued growth.
If you would like to hear more about how EIDA can deliver your next data centre build with schedule certainty and at reduce cost, talk to our expert team today.