The UK is preparing for a major increase in data centre capacity, with almost 100 new facilities planned over the next decade. Existing figures estimate 477 centres nationwide, with growth largely driven by demand for artificial intelligence processing.
Leeds is set to host two of Microsoft’s planned four UK data centres, part of a £330 million investment targeting completion between 2027 and 2029. Other regions, including London and surrounding counties, Wales, Scotland, and Greater Manchester, will also see development. Google is developing two sites totalling £450 million in north-east London, while Blackstone plans a £10 billion AI facility in Blyth covering 540,000 square metres, with construction starting in 2031.
Rising energy and water demands are a concern. The National Electricity System Operator projects that data centres could add up to 71 TWh of electricity demand over 25 years. Water infrastructure is also under review, with £104 billion in investment and ten new reservoirs under construction to support the sector.
