Net Zero: Can the UK Cope with Data Centre Expansions?

The UK's data centre landscape is set for transformation.

It is expected there will be an increase of around 20% in these facilities according to analysis shared with BBC News by construction researchers Barbour ABI. 

These energy intensive technologies could, however, have negative sustainability impacts.

With nearly 100 new sites on the horizon, concerns about energy load and environmental considerations are rising.

The UK is currently estimated to have 477 data centres.

"As AI becomes an undeniable integration in our everyday lives, it’s also a major factor in driving the surge of Data Centre construction projects in the UK," says Megan Pounds, Demand Generation Marketing Manager at Barbour ABI, writing on the company website.

"The UK’s digital infrastructure is relying on more data centres to be built to store and manage data. However, where there is a rise in the demand of building more data centres, there’s also the expected spike in energy usage that must be addressed.

"The strain on the grid isn’t the only concern for this growing sector. Data Centres will have to adapt to help reach the Net-Zero 2050 policy implemented by the UK Government. While many data centres are shifting towards renewable energy sources, the pace of this transition is slower than the growth in demand for data services."

Where will the UK expand its data centres?

Proposed developments predominantly concentrate in London and surrounding counties, with notable projects also planned across Wales, Scotland, Greater Manchester and other regions.

The initiatives are largely supported by major US tech giants like Google and Microsoft, alongside large investment entities.

The Blackstone Group has proposed a £10bn (US$13.6bn) AI data centre in Blyth, an enormous venture set on a former power station site, marks the largest single investment planned.

The project is scheduled to start in 2031, comprising of 10 buildings covering 540,000 square metres on the previous Blyth Power Station site.

Prominent investments from Microsoft and Google further emphasise the international interest in enhancing the UK's data processing capability.

Microsoft has made a £330m (US$447.3m) investment in multiple sites.

Google’s has invested £450m (US$610m) into northeast London, spanning 400,000 square metres in the Lee Valley water system area.

Critical energy and water demands

Data centres are categorised as critical national infrastructure by the UK Government due to their economic importance.

However, energy and water consumption concerns have prompted scrutiny.

In the United States, increased data centre presence has correlated with rising residential energy costs.

Dr Sasha Luccioni, AI and Climate Lead at Hugging Face, says that in some states “average citizens in places like Ohio are seeing their monthly bills go up by £15 (US$20) because of data centres”. 

She describes the UK’s construction timeline as “aggressive” and calls for companies to bear the cost of the extra power they consume.

Over the next 25 years, the UK's National Energy System Operator (NESO) has estimated that the growth of UK based data centres could add up to 71 TWh of electricity demand.

Sustainability concerns and local impact

Water use in cooling processes presents another sustainability concern.

Although dry-cooling advancements offer alternatives, transparency and consumption disclosures remain inconsistent. 

Steve Hone, CEO of The Data Centre Alliance, says: “Ensuring there is enough water and electricity powering data centres isn’t something the industry can solve on its own,” but stresses that “data centres are fixated with becoming as sustainable as possible” through measures such as dry-cooling methods.

A 435-acre data centre proposal in North Lincolnshire was objected by Anglian Water, although the developer said it planned to use closed-loop cooling systems to limit water use. 

Nearly 30 of the planned UK data centres would be based in areas served by Thames Water, along with 14 more in Slough.

What was the UK governments response?

The UK Government told the BBC that it is investing £104bn (US$141bn) in water infrastructure.

Water UK has called for faster resolution of planning hurdles and confirmed that 10 new reservoirs are being developed in Lincolnshire, the West Midlands and south-east England.

Whilst discussing the UK governments plan for change the Prime Minister Keir Starmer said: "Artificial Intelligence will drive incredible change in our country. From teachers personalising lessons, to supporting small businesses with their record-keeping, to speeding up planning applications, it has the potential to transform the lives of working people.

"But the AI industry needs a government that is on their side, one that won’t sit back and let opportunities slip through its fingers. And in a world of fierce competition, we cannot stand by. We must move fast and take action to win the global race.

"Our plan will make Britain the world leader. It will give the industry the foundation it needs and will turbocharge the Plan for Change. That means more jobs and investment in the UK, more money in people’s pockets, and transformed public services."