01 / Introduction 

Data centres were designated critical national infrastructure by the UK government in late 2024, on a par with water, energy and emergency service systems for their significance to the country’s growth, security and productivity. 

They have expanded rapidly in the past decade, with UK data centre capacity increasing by around 85% from an estimated 1GW in 2016 to 1.8GW by mid 2026. This has been propelled by consumer-facing AI, digital-first services and the transition to cloud computing. 

This growth is only expected to accelerate. Government-commissioned analysis published in May 2026 states UK capacity could increase by between 3.3GW and 6.3GW by 2030. Some put estimates even higher. 

Data processing and storage can in theory take place anywhere in the world, and data centres’ warehouse-like footprints can occupy large amounts of space. However, developing sovereign capacity in the UK – and finding ways to overcome space and infrastructure constraints – is now a strategic economic and geopolitical priority. 

Establishing a stable of best-in-class data centres asserts the UK as an attractive investment and business destination for international investors. Keeping sensitive data and knowledge within the nation in which it is generated is also a security consideration. Sovereign data centres mean the state can regulate how domestic data centres are financed, built and operated as well as, crucially, establishing high security and environmental standards. 

However, data centres demand significant critical infrastructure. They require access to power and fibre networks along with water, the demand for which varies depending upon cooling and energy strategies. Today, securing this supporting infrastructure in time to meet the UK’s ambitious AI goals is arguably a larger and more complex challenge than building the data centres themselves. 

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