Scotland to lead UK's data centre expansion with £25bn

In 2025, the UK data centre sector will confront significant challenges related to planning and energy grid access amid growing demand.

Giles Hanglin, Chief Executive Officer of Apatura, highlighted these issues in a recent blog post, noting that Scotland, with its robust grid connectivity and rich renewable energy resources, is prepared to spearhead a new phase of hyperscale data centre expansion. Hanglin also addressed the need for planning reform and improved energy grid access as vital components shaping the future of the UK's data centre landscape.

"The UK data centre sector is at a crossroads right now," said Hanglin. "On the one hand, data centre firms and infrastructure investors, including Blackstone, Amazon Web Services, Cloud HQ and CoreWeave, have pledged to invest a combined £25 billion in the next three to five years in new facilities in the UK. The race to build new data centre infrastructure is set to create new jobs, expand the country's digital economy, and make the UK more competitive worldwide."

Scotland's capacity for growth in the hyperscale data centre market is attributed to its clean energy surplus and grid availability, which Hanglin sees as crucial advantages that can cater to the substantial energy needs of these facilities. "Scotland offers a natural solution, with sites close to onshore and offshore renewables, where data centres can thrive on clean power while contributing to a flexible, resilient grid," he stated.

The UK Government's recent decision to classify data centres as Critical National Infrastructure (CNI) was recognised by Hanglin as a vital acknowledgment of their significance to the UK's digital economy. Nonetheless, he underscored the necessity for further synchronisation between national strategies and local planning to speed up development efforts.

Hanglin pointed out that "access to power remains the single biggest barrier," echoing concerns raised by the CEO of British property investment and development company Segro. "Recent government promises to streamline the grid connections process are welcome, but swift action is needed to unlock critical infrastructure projects, including data centres, industrial electrification, and housing."

Looking towards the opportunities for data centres in 2025, Hanglin emphasised the need for the UK Government, at both national and devolved levels, to encourage cooperation among various stakeholders. These include the data centre industry, local government, planning policymakers, National Electricity System Operator (NESO), and distribution system operators to ensure data centre growth is optimised in areas with abundant clean power.

He further said, "It must also ensure that local communities fully benefit from the positive societal and economic opportunities that new developments can deliver. In this regard, data centre developers and operators can learn important lessons from the renewables industry. Offshore wind has transformed port cities along Scotland's east coast and England's north-east coast by creating jobs, boosting training opportunities, and revitalising local economies."