The UK is set to expand its data centre capacity by nearly 20% to support growing digital and AI demands, but faces mounting concerns about energy consumption, water usage, and infrastructure strain. The expansion includes nearly 100 new facilities across the country, with major projects funded by tech giants like Google and Microsoft, though environmental and community impacts are raising significant questions about sustainability and resource management.
The current UK data centre count of 477 will increase by nearly 100 new facilities, according to planning documents analyzed by construction researchers Barbour ABI. These massive warehouses house powerful computers that enable digital services from streaming to banking, with the AI boom driving unprecedented demand for processing power. Most new centres are scheduled for completion by 2030, though the largest – a £10bn AI facility in Blyth – won’t begin construction until 2031.
Over half of the new data centres will cluster in London and neighboring counties, with additional sites planned in Wales (9), Scotland (1), Greater Manchester (5), and other regions. Major projects include Microsoft’s four new centres (£330m) near Leeds, Newport and London, and Google’s two facilities (£450m) in north-east London. The Blackstone Group is developing the largest single project – a 540,000 sq m AI complex on the site of a former power station in Blyth.
This expansion responds to the UK government’s designation of data centres as critical national infrastructure essential for economic growth. However, the National Energy System Operator warns these facilities could add 71 terawatt-hours to UK electricity demand within 25 years – equivalent to powering millions of homes. The growth also raises concerns about water consumption for cooling systems and potential bill increases for consumers, with US data showing $20 monthly hikes in affected areas.
Industry leaders acknowledge significant challenges, including the UK’s high energy costs and complex planning processes that can take 5-7 years per project. Data centre operator Equinix reports these hurdles are prompting some companies to consider building elsewhere despite the UK’s importance as a tech hub. Water scarcity concerns have already led to objections in Hertfordshire and North Lincolnshire, mirroring Dublin’s moratorium on new centres after they consumed 20% of Ireland’s electricity.
The industry claims intense focus on sustainability through innovations like dry-cooling and closed-loop systems. Water UK emphasizes efforts to build ten new reservoirs while lamenting planning hurdles. The government points to its new AI Energy Council and £104bn water infrastructure investment as solutions. However, critics demand mechanisms ensuring companies – not consumers – bear the true costs of energy and water usage.
What remains unclear is how the UK will reconcile its digital ambitions with environmental realities. As construction accelerates, the coming years will test whether technological solutions can offset resource demands, and whether communities will accept these facilities amid concerns about greenbelt land and local infrastructure. The government faces mounting pressure to demonstrate that economic growth won’t come at unsustainable environmental or social costs.