It’s a warm, sunny day on Slough Trading Estate, where huge gray warehouses dominate the skyline. But in one of these modest buildings the future is unfolding.
At Equinix’s LD6 data center, Mike Oxborrow, senior sales engineer, demonstrates the strict security measures required for access, including biometric scanning. Once through the airlock, known as a “man trap,” visitors are greeted by pristine hallways lined with server-filled cages, their fans working overtime to cool the hardware.
This facility is just one of six Equinix locations in the city and a crucial hub for a number of London financial institutions. Demand for data centers is rising, driven by the exponential growth of AI and cloud computing. With the UK government recently labeling data centers as ‘national critical infrastructure’, these massive facilities are becoming more important than ever.
“The boom is already here,” says Harro Beusker, CEO of nLighten, a data center developer. “Over the past 25 years, IT has become more important, and now companies are investing more, even outside economic cycles.”
This month, Amazon announced an £8 billion data center investment in Britain, promising 14,000 new jobs. Meanwhile, Global Infrastructure Partners and Microsoft have launched a $30 billion global fund to support AI-driven data center projects. Investors, lured by high capital requirements and significant barriers to entry, are eager to capitalize on this fast-growing sector.
Data centers are no longer just urban phenomena. Regional hubs are gaining ground, with Newcastle emerging as a hotspot. Companies like Stellium are building data centers there, benefiting from lower land and personnel costs, while staying connected with submarine fiber optic cables. AI can make these regional centers even more viable, as it is less dependent on the low-latency demands of traditional cloud computing.
Despite the optimism, challenges remain. Data centers are energy-hungry businesses, and their electricity needs are expected to increase sixfold over the next decade. As the industry continues to grow, balancing energy demand with sustainability goals is a crucial issue.
The future is not without uncertainties, but what is clear is that Britain is at the forefront of a data center revolution. From Slough to Newcastle, these facilities are driving technological change, creating regional jobs and driving major infrastructure investment across the country.