| 76% of data centre industry professionals are exploring more economically favourable sites abroad, due to costs and capacity constraints in the UK, according to a new report Powering Great Britain’s Data Centre Ambitions. |
| The majority of the 50 leading data centre developers, investors and operators studied are considering moving projects to areas such as Africa and Asia due to cost and connectivity restrictions, potentially removing key opportunities from the UK economy. As it is, these issues have already led to half of all projects changing locations, causing major setbacks during vital stages of development. |
| Not only this, but half of industry professionals optimistically think they will achieve a connection to the grid within one to two years, despite it actually taking between three and eight. |
| Hugh Taylor, CEO of Roadnight Taylor, the specialist grid consultancy behind the report, comments: “Data centre developers are facing mounting grid connection challenges that can derail even the most promising projects. Those navigating their first large-scale developments often discover too late that grid capacity takes far longer than anticipated, and sometimes years longer than planned. This is forcing people to look at options abroad, and constraining the UK’s economy in the process.” |
| Industry professionals revealed there are many different challenges facing these projects. They cite energy cost and pricing uncertainty (36%), technical issues during the connection process (32%) and the need for infrastructure upgrades (26%) as problems that have exacerbated delays. |
| The critical relationship between the grid and data centre project success is particularly underscored in the report: over half (54%) say securing a grid connection is a key barrier to projects. |
| Roadnight Taylor also found that 84% consider electricity network reliability and resilience as vital, with a further 80% placing the same importance on power availability. Another concern for data centre developments is grid sustainability, with 82% favouring clean power grids for investments, especially following news that electricity demand from data centres worldwide is set to more than double by 2030. |
| The report also reveals location preferences for projects. Nearly half of respondents claim the South East and London as their preferred project locations, with a further quarter choosing the North West – with the presence of a reliable electricity network and perceived efficient grid connection feasibility the top reasons they are chosen. |
| However, despite 74% believing that national infrastructure project delays are curtailing projects, the report suggests that 64% still remain optimistic that Britain is on track to become a leading data centre powerhouse. |
| Hugh Taylor continues: “The interplay between technical, regulatory and commercial complexities in grid connections creates challenges that most developers underestimate until they’re deep into the process. We’ve seen significant growth in enquiries from clients grappling with these realities, with investors managing stranded capital and development teams wrestling with misaligned timelines and fragmented permitting processes. |
| “What’s encouraging, however, is that when these challenges are navigated successfully, Britain has the potential to emerge as a leading data centre destination.” |
| Read the full report on Powering Great Britain’s Data Centre Ambitions. |
