The UK risks losing its leading position in artificial intelligence (AI) without a clear national data center strategy, a key industry player has warned.
Data centers, essential for powering cloud computing and AI applications, have become central to the digital economy. However, without a coherent plan, Britain could fall behind in the global AI race, according to industry experts.
The UK is currently the largest data hub in Europe, with more than 500 data centres, the majority of which are concentrated in the South East. These facilities are critical for everything from browsing on personal devices to AI learning, providing the power, connections and security needed for large-scale data processing.
Despite this status, high land prices, competition for network connections and local resistance have created barriers to further expansion in the southeast. This has led to some companies exploring opportunities beyond the sector’s traditional basics, with Kao Data breaking ground on a £350 million project in Stockport, Greater Manchester.
Paul Lamb, CEO of Kao Data, emphasized the importance of a broader strategy: “If we want to be part of the global AI opportunity, we must deploy these resources in locations that are suitable, sustainable and have the potential for growth.” He noted that Britain had no plan a decade ago when cloud computing took off, resulting in a concentration of power consumption around west London. Lamb called for a UK data center strategy to distribute these facilities across the country.
The challenge of further expansion in the south-east is evident in places such as Abbotts Langley, Hertfordshire, where a proposed data center development has sparked a local debate over green belt land. The planning application was initially rejected by the council, but Housing Minister Angela Rayner brought forward the decision on her first day in office, signaling the government’s commitment to growth.
However, the push for more data centers has also raised concerns. Local residents and council leaders argue that development on greenfield land should only be allowed if there is a significant benefit to the community. Stephen Giles-Medhurst, leader of Three Rivers Council, said: “We will do everything we can to say no to this development because it is an inappropriate location that will cause major damage to the green belt.”
Kao Data’s expansion into Greater Manchester reflects a potential solution to the challenges facing the South East. By repurposing an industrial site and leveraging existing network connections, the new facility aims to support the growing demand for AI-driven data processing. Andy Burnham, the Mayor of Greater Manchester, supports the project and recognizes data centers as crucial infrastructure for regional economic growth.
The UK government recently classified data centers as ‘critical national infrastructure’, putting them on par with power stations and railways. However, industry experts argue that a more comprehensive strategy is needed to ensure the country remains competitive in AI development.
As AI becomes increasingly important to global economic growth, Britain must meet the challenges of expanding the capacity of its data centers while balancing environmental concerns and local opposition. Without decisive action, experts warn Britain could miss a key opportunity to lead the AI revolution.