How Ark Data Centres is Turning a Hotel into a Data Centre
As AI growth increases, more data centres are being built.
UK-based data centre operator Ark Data Centres plans to redevelop a hotel and build a new data centre in Watford, outside London, continuing its expansion to meet rising client demand.
Founded in 2005, Ark now operates 27 data centres across nine sites in the UK and Belgium, with over 560MW of total capacity. In 2012, Elliott Investment Management acquired Ark, with European real estate investor Revcap retaining a minority stake. As of September 2025, Elliott is considering selling Ark, potentially for over £3bn (US$4bn).
Ark is currently working on projects in Union Park and Alliance Park in west London, alongside key sites including Cody Park in Farnborough, Meridian Park in north London, and Spring Park in Wiltshire’s Corsham. The Watford redevelopment, first reported by the Watford Observer, would be Ark’s 10th location, reinforcing its commitment to sustainable growth.
Sustainable data centres
Since its inception, Ark has prioritised sustainability and innovation, employing external air cooling and rainwater harvesting systems to balance water demand.
The proposed redevelopment at the former Mercure Hotel in Watford continues this trend, aiming to reduce environmental impact, conserve resources and support local communities. The site will run on 100% renewable energy and is expected to create high-skilled and local jobs.
The timeline
If approved, construction will start in 2026 for the 200MW facility, with a £2bn (US$2.6bn) investment, featuring up to six two- or three-storey data centres.
Ark Data Centres said: “The proposed development will be a best-in-class campus able to deploy a full suite of government, enterprise, cloud and AI workloads across Ark's diverse customer base, which includes many of the most well-known and valuable tech companies in the world.”
Delivering 250 MVA from 2028, the Elstree campus will become London’s largest data centre site.
Investing in the future of AI
In June 2025, Ark partnered with AI infrastructure company Nebius to distribute 4,000 Nvidia Blackwell Ultra GPUs, part of Ark’s £7.5bn (US$9.84bn) UK expansion.
“AI clouds need sites that can deliver high density cooling today and scale rapidly tomorrow," said Huw Owen, CEO, Ark Data Centres.
"Longcross Park was engineered precisely for that challenge and we are delighted to welcome Nebius to the UK as a key AI tenant.
"This agreement shows that the UK already has the infrastructure to support global innovators and it underlines our commitment to invest £7.5bn (US$9.84bn) in new, AI-ready capacity across the country to underpin the UK’s AI future.”
This partnership reflects the UK’s AI infrastructure capabilities and Ark’s commitment to supporting UK’s AI future.
The Elstree campus will be state-of-the-art, deploying multiple workloads including Enterprise, Cloud, and AI across Ark’s substantial customer base.
