The UK’s data centre market is experiencing exceptional growth, a trajectory driven by increasing data demands and boosted by the government’s recent commitment to making artificial intelligence (AI) a pillar of UK economic growth.
As a backbone of the digital world, data centres have also been categorised as critical infrastructure by the UK government.
However, their high energy use means that this rapid expansion in the UK comes with challenges . Chief among them is how we manage the tension between technological advancement and our Net Zero and renewable energy goals.
There is a unique opportunity to prove that a high-tech future can coexist with a low-carbon economy
Shahid Rahman EMEA Data Centre Strategic Account Lead
Major growth
The UK is home to approximately 487 data centres, making it the third-largest market globally, behind only the United States and Germany.
Recent announcements highlight the sector’s growth trajectory: Google is developing a 33-acre data campus in Hertfordshire, Kao Data is expanding its Manchester presence with a £350 million facility, and the Humber Tech Park will soon host a £2 billion hyperscale data centre.
These projects not only underscore the economic potential of data centres but also demonstrate their strategic importance to the economy, and the UK’s important position as a host to global players in this sector.
Opportunities and challenges
This fast-growing environment presents opportunities for the construction, technology, and energy sectors.
But balanced against this promised opportunity for growth we can’t overlook the fact that data centres are among the most energy-intensive infrastructure projects.
Globally, they account for approximately 2%–3% of carbon emissions, a figure set to rise as demand for computing power grows. The European Union estimates that data centres could consume up to 13% of global electricity by 2030 if current trends continue.
Cooling systems alone contribute to nearly half of a typical data centre’s energy consumption, making energy efficiency a critical focus for operators and policymakers.
Growth versus net zero
In this context, the UK faces dual imperatives: advancing its digital infrastructure while pursuing net zero targets.
To reconcile these objectives, the data centre industry is embracing energy-efficient and sustainable cooling technologies. One promising innovation is liquid cooling, which transfers heat more efficiently than traditional air-cooled systems.
This technology not only reduces energy use but also offers a smaller operational footprint and quieter performance. Major players like Microsoft are adopting liquid cooling in cutting-edge facilities, although air-cooled systems remain dominant in many existing centres.
Reusing heat
Beyond cooling technology, recovering waste heat offers significant sustainability potential. Data centre heat can be captured and redirected for use in district heating networks.
Scandinavian countries have pioneered this approach, using waste heat from data centres to warm homes and greenhouses.
In the UK, projects like the Humber Tech Park are adopting similar practices, planning to use ejected heat for horticultural glasshouses and local heating.
Another critical element in sustainable data centre development is the integration of renewable energy sources.
As data centres expand, their reliance on electricity is increasing pressure on local grids. Ensuring a resilient energy supply, preferably from renewable sources, is essential. For instance, the Blackpool Silicon Sands project plans to source renewable energy, complemented by potential solar farms.
Decentralised data centres
The shift toward smaller, edge data centres is also gaining momentum.
These decentralised facilities, located closer to users, reduce latency and optimise energy usage.
While hyperscale data centres often lead in efficiency due to their advanced technologies, smaller centres must also adopt energy-efficient designs and cooling solutions to align with sustainability goals.
A sector under scrutiny
The scrutiny on data centre operations is only set to intensify in the UK.
Leading providers like Amazon and Microsoft have already signed the Climate Neutral Data Centre Pact, committing to carbon-free energy use and improved sustainability practices. As a global leader in the sector, the UK must align its rapid data centre growth with these ambitious environmental standards.
The UK’s ambition to unleash AI (as PM Keir Starmer put it) through robust digital infrastructure hinges on the ability to sustainably manage data centre growth.
By adopting innovative cooling technologies, integrating renewable energy, and leveraging waste heat recovery, the industry can help balance the scales between technological advancement and environmental objectives.
As the demand for data intensifies, the UK has a unique opportunity to lead by example, proving that a high-tech future can coexist with a low-carbon economy.
Shahid Rahman is EMEA Data Centre Strategic Account Lead
