The UK data centre market is facing challenges due to slow planning reform and power constraints, putting it at risk of falling behind global competitors, according to a report by property consultancy Rapleys. Despite a current growth rate of over 5% per year, the UK market, valued at £8 billion annually with 520 operational facilities, lags behind the US and is losing ground to countries like Germany.
The increasing demand for data centre capacity driven by cloud computing, AI, and high-performance computing is putting pressure on the supply of data centres in the UK. This strain is exacerbated by planning hurdles that treat data centres as warehouses, conflicting with security protocols and staffing requirements. Grid connection queues, rising power prices, and post-Brexit labor shortages further hinder the delivery of new capacity.
Developers are turning to regional hubs like Manchester, Newcastle, and the East Midlands, where land and power resources are more accessible. Additionally, there is a trend towards repurposing heritage buildings like mills and listed offices for data centre use. Kieran Rushe, Partner at Rapleys, emphasizes the need for smarter planning policies and faster decision-making to scale up the UK’s digital infrastructure and avoid falling behind in the global market.
