Data Centre Uptake to Accelerate in the UK

​The UK is now one of the largest data centre markets in the world. There is roughly 2.6GW of installed data capacity in the UK, according to the International Energy Agency (IEA) in 2025. In a recent blog, we highlighted how this was estimated to account for 5.1% of the UK’s power demand. Roughly around 94 new-build data centre projects in development, worth an estimated £36.4bn, and expect that number to rise as AI demand climbs.

What's driving the surge in the UK

The UK’s strong AI talent and research capacity make it an attractive location for data centre development. Google DeepMind being founded in London is an example of the UK’s strong presence in the market, supported by the country’s leading universities.

Policy support is also helping to raise funding. The government is aiming for the UK to be an “AI superpower” and they have designated data centres as critical national infrastructure to support this. The UK-US Tech Prosperity deal, which was a £31bn Memorandum of Understanding signed in September 2025, has brought in significant investment in AI infrastructure and data centres. The government has also announced five AI growth zones to fast-track AI infrastructure and mainly hyperscale data centres.

Who is funding the UK AI infrastructure build-out?

Major tech companies are leading AI development. Nvidia, Amazon Web, Microsoft, Apple and Meta are leading investment globally, and some of the major players financing the UK’s data centre build out. Microsoft and Google are funding capital directly, while Amazon is expanding its cloud footprint. Under the Tech Prosperity deal, Microsoft pledged £22bn and Google £5bn, including a new data centre at Waltham Cross. Nvidia committed 120,000 GPUs (graphics processing units, which are the chips that train AI models), and cloud firm CoreWeave has committed £2.5bn. Specialist operators such as VIRTUS, Equinix and Digital Realty are active too with large private equity firms behind them. For example, Blackstone is funding a £10bn AI data centre at Blyth near Newcastle, the largest single project in the UK pipeline.

Developers include…

Nscale is building a £2bn AI data centre at Loughton in Essex, backed by chipmaker Nvidia and with Microsoft as anchor tenant (its main customer). The local council approved it after pressure from government, but the grid connection has been pushed past the planned 2027 opening. To avoid the wait, Nscale is in talks with Bloom Energy about on-site fuel cells to power the site in the meantime.

Ark Data Centres is building several new UK campuses. Its 2026 pipeline includes a £2bn, 200MW campus converting the Mercure hotel in Watford, a 54MW project at Longcross in Surrey for cloud provider Nebius, and a further extension at Spring Park in Wiltshire.

Greystoke is building Elsham Tech Park, a £7.5bn hyperscale campus on a former RAF airfield near Scunthorpe. The plan runs to 15 data halls drawing up to 1GW of power, with a 49.9MW on-site energy centre and battery storage. It has outline planning approval, the first stage of consent, and is being taken forward through Elsham Tech Park Ltd.

Xlinks is planning an AI data centre campus and battery storage site across an 850-acre site near Great Torrington in Devon. The company claims the scheme would create 650 to 1,200 jobs and add up to £3.6bn to the economy, powered by solar, wind and spare capacity at the Alverdiscott substation. The project is at an early stage: two planning applications are due but neither has been submitted.

What's next?

Grid connection remains a core barrier. The investment commitment is there, with 71 data centres having reached financial decision, according to energy regulator Ofgem, but the electricity network cannot connect them fast enough.

The delay to grid connection is typical. This has now become the main barrier to UK data centre growth, and it is pushing developers towards on-site generation and behind-the-meter power (generating electricity at the site rather than drawing it from the grid). We expect power availability and sourcing to be a key determinant in which projects move forward.

Mint Selection specialises in energy transition talent. We support projects across their full life cycle, from early development and grid connection through to construction and operation. Data centre growth sits exactly at that meeting point of digital infrastructure and energy. As developers race to secure power and build at speed, the people who can deliver both are in short supply. We work with developers, operators, independent power producers and investors to find them. To discuss your resourcing needs, contact us at hello@mintselection.com.

Data Centre Uptake to Accelerate in the UK by Ella · Mint Selection