Research has found that power availability is now the defining factor in shaping the next phase of UK data centre growth.
The report by law firm Burges Salmon found that while demand for data centre capacity continues to accelerate, it is not the main factor in why some projects proceed and some do not.
Currently the UK has more than 550 data centres and has set a target of at least 6GW of AI-capable capacity by 2030. But developers continue to face significant challenges when securing electricity connections for new projects.
Ros Harris, Leader of Burges Salmon’s Data Centre Campaign, said: “Government policy is increasingly supportive. But the industry is now confronting a reality that many sectors are facing simultaneously: power has become the defining constraint and sustainability considerations are increasingly more important.
“The conversation has moved beyond where demand will come from. The focus now is on deliverability. The organisations that successfully navigate power availability, planning, financing and delivery risk will be best placed to capture one of the most significant infrastructure opportunities of the coming decade.”
Alongside growing demand and a lack of reliable power, planning reforms and a greater focus on sustainability are both factors that are reshaping the sector.
It also suggests that the UK remains one of Europe’s most attractive markets for data centre investment. But it faces intensifying competition from regions offering faster grid connections, lower energy costs and fewer delivery constraints.
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