The UK is poised for a sharp rise in data centre numbers, with planning analysis suggesting an almost 20% increase over the next five years.
Construction researchers Barbour ABI reviewed local authority planning documents and told the BBC that the current total of 477 data centres could climb by nearly 100 as demand for processing power accelerates. The expansion is largely driven by the rapid adoption of artificial intelligence, which requires significant computing infrastructure to operate.
More than half of the new facilities are expected to be located in London and surrounding counties.
The increase in planned facilities coincides with several large-scale investments. Prime Minister Keir Starmer announced a £10 billion commitment from US investment firm Blackstone to build Europe’s largest AI data centre in Blyth, Northumberland. Construction is scheduled to begin in 2026, with the project expected to create more than 4,000 jobs, including 1,200 in construction. The development is seen as a significant boost for the North East, particularly for Blyth, which faced economic setbacks following the collapse of battery startup BritishVolt.
Separately, Microsoft confirmed plans to expand its UK data centre capacity with a £2.5 billion investment over the next three years. The project will add over 20,000 advanced graphics processing units (GPUs) by 2026 to support AI model development. It also includes a programme to train more than one million people for roles in the AI sector. The infrastructure expansion will be centred in London and Cardiff, with potential further growth in northern England.
These investments mark a significant scaling-up of the UK’s AI infrastructure, as demand for computing power continues to grow.
However, industry experts have warned that the surge in capacity will bring additional pressures on energy and water resources, potentially influencing costs for consumers.
