Fibre gaps delaying UK data centre growth & AI ambitions
New research has identified that gaps in fibre infrastructure are delaying UK data centre expansion and impeding the nation's ambitions in artificial intelligence (AI).
Neos Networks has published findings from a survey of 300 UK decision-makers spanning data centre operators, large enterprises, and local government representatives, highlighting the impact of limited fibre connectivity on digital infrastructure and AI projects across the country.
Project delays
The research revealed that 82% of data centre operators in the UK have experienced delays in site builds or expansion due to insufficient fibre availability. In addition, 95% of these operators indicated that access to new high-capacity fibre networks is now a deciding factor in their future expansion plans.
The survey results suggest that core fibre networks have not kept pace with investment in last-mile connectivity, creating a bottleneck that threatens to slow the country's digital growth. The majority of industry stakeholders agree that new investment in backbone fibre networks is necessary for overcoming these obstacles.
Lee Myall, CEO of Neos Networks, said: "Over the past decade, we've seen a huge amount of investment in last-mile fibre builds, but core fibre networks across the country have received much less attention. Without them, workloads cannot move between data centres, data cannot be trained, and investments stall. The UK has the ambition, the demand and the regional readiness to lead in AI, but if we don't address fibre gaps, we risk losing out on one of the greatest economic opportunities of our generation."
Wider impact across sectors
The study also found that 89% of local government stakeholders have seen fibre gaps delay infrastructure projects in their regions. Almost half (46%) of local authorities indicated that the fibre infrastructure in their area is not fully equipped to support AI-focused data centres, while 45% of enterprises identified fibre constraints as the main barrier to AI and digital deployments.
One in six companies surveyed expressed doubts about the ability of the UK's current fibre network to support their AI plans, underlining concerns about the country's readiness to capitalise on digital transformation opportunities.
Influence of government initiatives
The UK government's initiatives, including AI Growth Zones outlined in the AI Opportunities Action Plan, are said to be influencing decisions about data centre expansion and infrastructure investment. According to the research, 96% of data centre operators identified AI Growth Zones as influential in their site selection and expansion strategy, with 44% describing the influence as strong. Similarly, 68% of enterprises viewed these zones as significant in shaping their infrastructure planning.
Regional diversification
While 23% of data centre operators still expect new investment in Greater London, 39% pointed to the North of England and the Midlands as key regions for future growth. This signals a shift towards greater regional diversification in AI data centre activity.
This trend is reflected in how compute resources are being located. Nearly all (97%) data centre operators expect up to half of their UK compute to be sited at the edge of the network by 2030, highlighting the requirement for reliable fibre connections beyond traditional metropolitan areas.
Concerns and opportunities
Despite the positive momentum generated by these strategies, concerns remain about the country's digital infrastructure readiness. According to the survey, 41% of data centre leaders believe that the UK's fibre infrastructure is only partially adequate for supporting regional AI workloads. Additionally, more than 70% of enterprises believe the UK's attractiveness for data centre investment either needs improvement (53%) or is already lagging (17%).
The research identified strong support for new fibre backbone projects. Nearly all respondents across data centre operators, enterprises, and local government authorities agreed that investment in high-capacity fibre corridors would boost confidence in the UK's ability to scale its AI sector. More than half (53%) of local authorities believe such projects would have a transformative effect on their regions.
Myall concluded: "AI is no longer a future ambition, it's here today, reshaping how businesses, communities and governments operate. But the UK cannot lead in AI on yesterday's infrastructure, and we need continued investment in the fibre backbones that connect every region of the country. At Neos, we're committed to building those foundations so the UK can not only keep pace, but compete and thrive in the global AI race."
