The UK risks losing its leadership position in artificial intelligence (AI) without a clear national strategy for data centres, a key player in the sector has warned.
Data centres, essential for powering cloud computing and AI applications, have become central to the digital economy. However, without a cohesive plan, the UK could fall behind in the global AI race, according to industry experts.
The UK is currently Europe’s largest data hub, with more than 500 data centres, the majority concentrated in the South East. These facilities are critical to everything from personal device browsing to AI learning, providing the power, connections, and security required for massive data processing.
Despite this status, high land prices, competition for grid connections, and local resistance have created barriers to further expansion in the South East. This has led some companies to explore opportunities beyond the industry’s traditional base, with Kao Data breaking ground on a £350 million development in Stockport, Greater Manchester.
Paul Lamb, Kao Data’s CEO, highlighted the importance of a broader strategy: “If we want to be part of the global AI opportunity, we need to deploy these resources in locations that are suitable, sustainable, and have the opportunity for growth.” He noted that the UK lacked a plan a decade ago when cloud computing took off, resulting in a concentration of power usage around west London. Lamb called for a UK-wide data centre strategy to distribute these facilities across the country.
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