- Report finds 40% of British-based data centres are in London
- Recent analysis shows the UK has 555 data center installations operational, second only to the USA (4,423)
- Energy costs in the UK could slow development of data centres, following an OpenAI project being put on hold
A number of recent studies indicate that the UK has a strong data center industry, with the majority of facilities sitting within the M25. But as internet backbone speeds increase and planning is easier to get approved beyond London, the rest of the country is seeing an uptick in facilities.
Recent studies – including one by Statista – indicate a total of 555 UK data farms, placing it second in the worldwide charts, slightly ahead of Germany but massively behind the USA, which leads with 4,423.
But there are interesting developments, as while 40% of the UK’s data centres are within the M25, the South East ( the area immediately beyond London) and the North West boast the second and third largest collection of data centres.
A data center near you?
With London offering 40% of the UK’s data center capacity (219 are already operational, with 15 expansions planned), decision-makers are feeling the pressure.
While there is growing opposition to data centres in the US, public feeling in the UK is also growing, with a facility planned for London’s historic Brick Lane, amid concerns for water use, noise, huge structures, and electricity bills.
The British government announcement on July 31, 2026 that the development would proceed was met with some consternation.
Some of these concerns may also explain why data centres in the UK are popping up beyond the capital.
Prime Minister Andy Burnham’s native North West has 39 facilities, with 5 approved and set for completion, making it the most popular spot in England outside of London. In Scotland, 49 facilities are up and running.
Why-I data centres
Demand for AI and cloud processing and hosting is of course driving the development of new data centres, but not all parts of the UK are rushing towards progress.
Slow to add data centres are the largely rural areas of the South West (with 20 locations), and the North East, with just 21 sites. These regions may be slower to approve plans, or may simply have fewer applications to due to proximity to large population centres.
But this may change soon thanks to the Blackstone-backed development near Blyth in Northumberland, one of two approved within the past 18 months.
Challenges to developers and operators in the UK may yet contribute to a slowdown that might placate anti data center protesters. For example, an OpenAI data center intended for Cobalt Park in North Tyneside, was shelved in 2025 following concerns over increased energy costs in the UK, despite being a designated AI growth zone.
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