The UK power quest: New data centre hubs in the United Kingdom
Join us on a journey to uncover the changing face of data centre development in the United Kingdom. From the challenges of powering these hubs to the emergence of new data centre locations and the rise of edge data centres, we'll explore the dynamic landscape shaping the digital future beyond London.
The United Kingdom (UK) is experiencing an unprecedented surge in demand for data centres, driven by the relentless growth of digital technologies and the increasing need for data storage and processing capabilities. With nearly 60 undersea cables and an expected Compound Annual Growth Rate (CAGR) of 5% from 2023 to 2028, the data centre market in the UK is dynamic and far from stabilising.
While London has been the long-standing data centre hub in the United Kingdom, the rising demand has sparked a shift towards establishing facilities in other regions. However, this expansion presents its challenges, particularly in locating suitable sites with sufficient electrical power supply capacity in the local infrastructure. As a specialist with a proven track record in data centre development, we invite you to explore the hurdles faced in this quest and how to overcome them.
While London has been the long-standing data centre hub in the United Kingdom, the rising demand has sparked a shift towards establishing facilities in other regions. However, this expansion presents its challenges, particularly in locating suitable sites with sufficient electrical power supply capacity in the local infrastructure. As a specialist with a proven track record in data centre development, we invite you to explore the hurdles faced in this quest and how to overcome them.
The dominance of London
For decades, London has held a prominent position as the primary data centre hub in the United Kingdom, boasting robust infrastructure and connectivity. Notably, it is not only the largest market in the United Kingdom but also the largest in Europe, with an anticipated new supply of 132MW in 2023, pushing the total capacity beyond 1 GW. Despite its dominant status, the development of new facilities in London faces difficulties due to power shortages.The Greater London Authority (GLA) highlights that “there has been a rapid influx of requests for new electricity connections throughout West London,” leading to electric capacity shortages. Addressing these demands through infrastructure upgrades will take considerable time, leaving data centre development in London with limited options in the short term. Additionally, rising land acquisition costs have constrained the feasibility of new data centre projects in the city.
It is forecasted that growth will be experienced in brownfield data centre construction in London in the coming years, with greenfield investments elsewhere.
Beyond London: The call for decentralisation
As data consumption escalates and construction becomes difficult in the capital, data centre expansion beyond London becomes a necessity. While London is leading the data centre market in the United Kingdom, there are other markets that can have a share in housing data centres. Manchester, Leeds and Cardiff, for example, are all upcoming data centre cities.These cities offer favourable conditions for data centre development, such as lower land acquisition costs and less congested infrastructure, making them attractive alternatives to London. The key challenge lies in supporting the substantial energy requirements. The existing local infrastructure in these regions may not be fully equipped to handle the substantial power requirements of large-scale data centres yet. As a result, data centre developers and operators must work closely with local authorities and power providers to upgrade the electrical grid and ensure a stable power supply.
The rise of edge data centres: Empowering population hubs
The concept of edge data centres is gaining prominence. These smaller, distributed facilities are strategically placed closer to population hubs, reducing data latency and enhancing user experiences.Edge data centres play a crucial role in supporting emerging technologies like IoT (Internet of Things), autonomous vehicles, and augmented reality by processing and delivering data faster. Their proximity to the end-users allows for lower latency and faster response times, which are essential for real-time applications and services. The global edge market is expected to grow with a CAGR of 38% from 2023 to 2030.
The advantages of edge data centres are particularly evident in urban areas with high population densities and heavy data consumption. By offloading data processing closer to the users, the burden on centralised data centres is alleviated, and the strain on networks is reduced. This decentralisation optimises network efficiency, reduces data bottlenecks, and enhances overall data delivery speeds.
In the UK data centre market, the role of edge data centres is becoming increasingly significant, especially as digital technologies continue to proliferate and demand for low-latency services grows. As more industries and services become reliant on real-time data processing, the need for edge data centres in population hubs becomes critical.
One example of the power of edge data centres can be seen in the transportation sector. With the increasing development of autonomous vehicles, these cars require continuous access to real-time data to navigate safely and efficiently. Edge data centres placed strategically in urban areas can provide the necessary computing power to process data from sensors and deliver immediate responses to vehicles, reducing accidents and improving overall traffic management.
Conclusion
In conclusion, the United Kingdom's data centre market is experiencing a remarkable surge in demand, driven by the relentless growth of digital technologies and the increasing need for data storage and processing capabilities. While London has long been the central hub for data centres, the rising demand has prompted a shift towards establishing facilities in other regions, necessitating careful consideration of suitable sites and addressing challenges in power supply capacity. As a specialist with a proven track record in data centre development, we are well-positioned to help you overcome these challenges.Cities like Manchester, Leeds, and Cardiff emerging as promising locations, and edge data centres gaining prominence in population hubs. By partnering with us, you can access a wealth of knowledge and expertise to navigate the complexities of the data centre landscape, unlock potential in emerging markets, and empower the UK's digital future. Let's collaborate and embrace the opportunities that this dynamic market offers. Reach out to discover how we can support your journey.
