UK Data Centers on the Move: Preparing for a New Era of Expansion

A comprehensive study conducted by data centre specialists Onnec has unveiled a significant trend regarding the approval of data centre projects across the UK’s 20 largest cities. Remarkably, an overwhelming 89% of planning applications have received the green light over the past five years, highlighting a robust local endorsement for this crucial digital infrastructure. Of the 88 applications examined, a mere three faced rejection, five were withdrawn, and one remains in limbo.

Onnec meticulously analysed the planning applications from 44 local councils for this report. The findings indicate a clear inclination towards the approval of data centres, reflecting a growing recognition of their importance to digital infrastructure. The necessity for these facilities to support the deployment of artificial intelligence (AI) underscores the significance of this local support. Interestingly, Sheffield stood out, with only three of its applications being declined. Local authorities scrutinised potential concerns related to design, environmental impact, and the compatibility of these centres with the surrounding character, particularly in areas designated as green belts.

Adding to the significance of this report, the British government has classified data centres as critical infrastructure. This designation emphasises the need for a cohesive and nationwide planning strategy to maximise benefits. Committing to a £6.3 billion investment in data centres, the UK is firmly positioning itself as a hub for AI development. The Department for Science, Innovation and Technology is actively working to streamline the process of building new data centres, reviewing previously rejected projects to identify areas for potential improvement.

Matt Salter, Data Centre Director at Onnec, articulated the stakes involved: “Data centres are essential for propelling AI growth, and as the competition for AI supremacy intensifies, the UK has recognised the necessity of establishing the right infrastructure.” He further likened data centres to the “new oil” for regions and cities, emphasising that a holistic planning approach is vital. This involves considering every conceivable aspect of data centres, not merely focusing on conventional factors like power supply and cooling systems. For instance, the critical role of cabling in ensuring adequate bandwidth for optimal data centre performance must also be prioritised.

While London retains its status as the largest data centre market in Europe, the report advocates for expanding data centre availability throughout other regions of the country. A heavy reliance on London can lead to challenges regarding power supply and sustainability. Diversifying the locations of data centres could allow for broader benefits to local communities, fostering enhanced job opportunities not just within the centres themselves, but also for those with digital skills applicable in various sectors.

Salter cautioned against neglecting a holistic approach to planning, warning that failure to do so could result in facilities that are ill-suited for their intended purpose, unable to meet the evolving needs of the UK, and deteriorating rapidly. “Poorly conceived planning might render a new data centre feeling antiquated after just one year of operation, which could lead to costly retrofitting,” he stated. “The UK stands at risk of falling behind in the race for AI supremacy if our data centres are not designed to endure.”