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The UK is set to experience a significant rise in the number of data centres, with nearly 100 new facilities expected over the next five years, according to new research by Barbour ABI. This increase—almost a fifth more than the current 477 centres—reflects the rising global demand for computing power driven by artificial intelligence (AI).
While the expansion strengthens the UK’s position as the third-largest data centre hub after the U.S. and Germany, concerns are mounting over the environmental and economic impact of these facilities. Data centres consume vast amounts of electricity and water, sparking fears of higher consumer bills and increased pressure on national resources.
Most of the new centres will be concentrated in London and surrounding counties, though major projects are also planned across Wales, Manchester, Scotland, and Hertfordshire. Among the biggest is a £10bn AI data hub in Blyth by U.S. investment firm Blackstone, set to begin construction in 2031. Tech giants including Microsoft and Google are also investing heavily, with projects worth hundreds of millions of pounds.
The UK government has designated data centres as critical national infrastructure and insists they are central to future economic growth. Deputy Prime Minister Angela Rayner has even overturned some council rejections to accelerate construction.
However, experts and residents warn of potential risks. High energy consumption could strain the grid, while water-intensive cooling systems threaten local supplies. In Hertfordshire, locals have opposed a £3.8bn AI centre planned on greenbelt land, calling it an attack on their environment.
To meet rising demand, the AI Energy Council and £104bn water infrastructure investment plan have been announced, alongside efforts to develop sustainable cooling technologies. Still, critics argue the “aggressive timeline” and lack of clear energy-use data raise serious sustainability concerns.
