Beyond London: The Rise of Regional Data Centre Hubs in the UK
Beyond London: The Rise of Regional Data Centre Hubs in the UK
London has been the heart of the UK’s data centre industry for years; housing some of the largest and most advanced facilities in Europe. With the UK's data centre market in receipt of serious investment, with over £60 billion in pledges announced at the UK's investment summit, with the promise of almost 40,000 jobs in the sector.
Yet, as demand for data processing and storage surges, regional hubs are emerging across the UK as key players in the nation’s digital infrastructure. Manchester, Birmingham, Cardiff, and Glasgow are now home to state-of-the-art data centres, driven by advances in connectivity, sustainability goals, and the need for decentralisation.
Companies, including Kao Data in Cardiff, Latos Data Centre in Cardiff and nLighten (formerly Proximity Data Centres) in Birmingham are reshaping the UK’s data centre landscape.
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But, what’s behind the drive for decentralisation?
The shift in focus beyond London is being fuelled by several critical factors:
Rising Demand for Digital Services
With the UK’s digital economy booming, businesses require faster, more reliable, and scalable data solutions. To meet these demands, businesses, enterprises and cloud service providers are expanding their footprints outside of London.
Lower Operational Costs
London’s high real estate costs and power constraints make it increasingly challenging for data centre operators to expand within the capital. Regional cities deliver lower land and energy costs, which is attracts new developments. Using Ekkosense-supplied software, Virgin Media O2 utilized real-time monitoring of thermal, power and capacity performance across 20 UK data centres, resulting is energy savings of over £1m.
Government and Local Authority Support
Regional economic growth initiatives, tax incentives, and infrastructure investment programs have supported data centre expansion outside of London, with Manchester receiving substantial government support to develop as a digital hub.
Edge Computing and Decentralisation
As the adoption of 5G and IoT accelerates, businesses need low-latency solutions that are closer to users. Regional data centres reduce latency, bringing processing power nearer to end-users and reducing reliance on London-based infrastructure.
Sustainability and Renewable Energy Access
Regional locations can deliver better access to renewable energy sources, making it easier to hit industry sustainability goals. Glasgow and Cardiff’s investment in greener, energy-efficient data centres powered by wind and hydroelectric resources, makes them compelling locations.
Where are the Key Regional Data Centre Hubs in the UK?
The Northern Powerhouse, Manchester has become a major technology hub, attracting hyperscalers and colocation providers. The city’s excellent fibre connectivity, proximity to businesses, and lower operational costs make it a prime location for data centre investment. Large-scale projects and expansions from operators such as Equinix and Digital Realty highlight the city’s growing importance in the sector.
The Midlands’ Digital Heart, Birmingham, is experiencing rapid growth in digital infrastructure, supported by its central location and strong transport links. As more companies decentralise their IT infrastructure, Birmingham is well-positioned to support businesses. nLighten’s Proximity Edge 8 data centre is strategically placed near the new HS2 station and the BBC campus.
The Welsh capital, Cardiff, is making strides in green data centre developments. With access to renewable energy sources and strong government support for tech innovation, Cardiff is becoming an attractive alternative to London. Latos Data Centres planning permission for a hyperscale centre near Cardiff designed to Tier III specifications, with all power to be sourced from the National Grid’s renewable energy. Nearby Tremorfa Energy Park’s battery energy storage facility will offer backup support.
Glasgow is Scotland’s data-driven hub and has established itself as a key player in the UK’s data centre expansion. The city benefits from robust infrastructure, investments in renewable energy, and a strong technology talent pool, making it an appealing location for data centre operators looking to scale outside of the capital.
Positioning People Outside of London
We have mapped the evolving needs of the UK’s data centre industry, with our regional network of specialist consultants strategically positioned across the UK to support businesses in sourcing top talent and navigating the growth of data infrastructure beyond London.
Watching the market very closely, we are tracking salary benchmarking and skills shortages to onboard targeted talent for regional data centre expansion. With sustainability top priority, our focus on greener recruitment puts us is a key position to source professionals with expertise in renewable energy, sustainable IT infrastructure, and environmental compliance.
Drawing the New Data Centre Map
The rise of regional data centre hubs is reshaping the UK’s digital landscape. As businesses look beyond London for scalable, cost-effective, and sustainable solutions, from Kao Data’s £350m data centre with AI and cloud workloads in Stockport to nLighten’s 6MW facility in the heart of Manchester, are proving to be prime locations for expansion.
It’s a fast-moving phase for data centre development and one that we’re closely tracking. If you’d like to leverage our knowledge and experience, contact our Data Centre specialists today.