Platform UK | London – Datacentre Investment Forum

2nd UK Datacentre Investment Forum

Finance & Investment for UK GW AI Data Centres, Digital Infrastructure and Renewable Energy

Datacentre power consumption in the UK will increase six-fold, just in the next ten years. The supply of massive power to support the expansion of existing facilities and the rollout of GW digital campuses across the country foretells significant changes in the structure and expansion of the data center industry.

With a services value estimated at around USD15bn by the end of 2024, the UK datacentre market has accrued more than 500 facilities of which less than 150 manage a total of more than 1GW and is a market experiencing sustained growth. Some reports suggest a 3GW market by 2029-30.

To date, investment has focused on London which represents around 80% of the market and more than 1GW of operational capacity and surrounding areas concentrated across industrial parks and estates. At least 45 new build projects are due to go online between now and 2026.

Demand has been driven by enterprise digital transformation and 5G uptake across the UK generating higher levels of data traffic which in turn leads to growth in demand for IT infrastructure and the requirement for more storage and processing power. UK data centers will be responsible for storing more than USD135 bn worth of data annually by 2025.

The UK is also connectivity rich, with around 56 submarine cables. 2Africa, Amitie, and BT North Sea are three upcoming submarine cables connecting the UK to major markets worldwide.

However as supply constraints prevail, and diminishing space availability in the South-East, investors, both private equity as well as end-user Hyperscales are assessing sites combined with renewable power availability and connectivity in secondary markets. Opportunities across the UK – Scotland, Northern Ireland, the North, Manchester, Leeds, Blackpool, Wales, and other regions – are emerging quickly reflecting changes elsewhere in Europe.

Yet the advent of AI requires decisive moves to ensure the UK remains competitive. It adds more complexity than is perhaps recognized but also another substantial new driver to demand especially in power and will require investment in the new build of facilities, energy grid, and infrastructure.

Mega deals are predicted for the UK because of the higher costs involved with data center build-outs and the intensity of the competitive landscape.

In this timely symposium, investors and the leadership of data center businesses meet to discuss the investment outlook for the UK market and provide insight into the fast-moving directions and changes that datacentres are experiencing.