Artificial intelligence (AI) is everywhere, and so is the demand for more data. The explosive growth in digital demand and AI is making the way we design and deliver data centres in the UK increasingly urgent. But the sector is constrained. We recently hosted a roundtable at UKREiiF to discuss the topic.
I wanted to dive into why this is happening and what we can do about it. We brought together developers, energy providers, planners, and policy specialists to explore this shared challenge.
I was joined by:
- Noel Powell, director, strategic client development, SSE Energy Solutions
- Muhammad Khan, studio practice leader, mission critical, HKS Architects
- Maria Antoniou, head of economic development, Northumberland County Council
- Simon Brown, partner, head of ESG, RLB
- Emma Fryer, director, public policy Europe, CyrusOne
- Tom Glover, EMEA head of data centres, JLL
Power availability, water use, and social value are defining factors in the UK data centre market right now.
Our conversation felt more urgent and necessary than ever. Power availability, water use, and social value are defining factors in the UK right now. They are shaping where projects can happen, how quickly they can move forward, and what they look like when delivered.
Power constraints are redefining site selection for data centres in the UK
The huge volume of growth in AI and digital services is translating directly into energy consumption. This is happening right now. It’s not five years down the road.
But in the UK, grid connections for major developments can now take 10 or more years to secure. It’s not sustainable. And it is fundamentally altering project timelines and investment decisions.
As a result, site selection has taken on a new level of complexity, which has come at an inopportune time for the sector. Demand is increasing. At the same time, it’s getting more difficult to build. Sourcing the right expertise and bringing vested sectors together to identify solutions is more important than ever.
The sector faces constraints that are driving a rethink of how we design for power. Developers are more often forced to look past traditional grid connections and explore new ways of powering their assets. We’re seeing more use of renewable energy, on-site generation, and battery storage.
We are actively supporting innovation in this area. By bringing together our thinking in energy, water, and digital infrastructure, we help clients design more integrated systems that combine grid connectivity with on-site and near-site generation. By design, they are more resilient. In many cases, we are seeing the emergence and benefits of microgrid-style solutions. For us, we see a future where data centres in the UK operate as part of a broader and more flexible energy ecosystem.
During the roundtable, we agreed that data centres have the potential to change their image. From being seen as a burden on the grid to becoming active participants and a friend to it. How do they do this? By using renewable and flexible energy systems. That way, they can help balance demand, support grid stability, and speed up the transition to a lower-carbon economy.
" }We’re seeing more use of renewable energy, on-site generation, and battery storage to help power data centres.
Sustainability metrics need to catch up
However, this transition is not without its own challenges. One of the most pressing issues we discussed at the roundtable is the growing complexity of sustainability metrics and regulatory frameworks. Measures such as Power Usage Effectiveness are well understood. But newer metrics like Water Usage Effectiveness (WUE) are still evolving. And it can risk misrepresenting genuinely sustainable design choices for data centres in the UK.
As it stands now, proposed revisions may classify pass‑through water as “consumption”. This is where water is borrowed, used for cooling, and returned. In that case, no water is materially lost. But this creates a disconnect between real-world efficiency and reported performance. And that can penalise innovative, low-impact cooling approaches.
More fundamentally, WUE is being stretched to capture both operational efficiency and sustainable sourcing. And this can lead to confusing or even contradictory outcomes. The consensus from the room was that there is a need for clearer, more nuanced metrics. These should separate how efficiently water is used from how responsibly it is sourced. Otherwise, there is a risk that regulation could, by mistake, discourage the very solutions it aims to promote.
The pace of change means that industry, regulators, and policymakers must work together to make sure that frameworks reflect real-world outcomes. Metrics should be clear. They must also be consistent and aligned with the broader goal of sustainable development. If they aren’t, then we risk creating unintended barriers.
Early collaboration will determine success
We also spent time looking at how project delivery is evolving for data centres in the UK. The physical footprint of data centres is more complicated. This is due to the need to accommodate higher densities and more intensive workloads. What we see are changed standard requirements. Things like:
- Larger substations
- Expanded utility infrastructure
- Increased building heights
One way to de-risk projects is to think about utilities, access, and spatial requirements from the outset. This helps create solutions that are both technically viable and commercially deliverable.
" }We also discussed AI Growth Zones. They are part of the evolving policy landscape and aim to support regional growth and digital infrastructure investment. And there is a clear intent to accelerate development and attract capacity to new locations.
But our discussion highlighted why it’s important to align these designations with market demand and infrastructure realities. The group felt that such initiatives can play a valuable role where they are underpinned by robust power availability, connectivity, and clear delivery frameworks. These factors will create the right conditions for long-term, sustainable growth rather than simply signalling opportunity.
Bringing communities with us
One of the most encouraging themes from our discussion was the focus on early and meaningful engagement. It was a common theme throughout the wider conference.
When developers, local authorities, and communities work together from the start, the result is a better project. Transparent communication and clear articulation of benefits, both economic and social, are vital in getting public buy-in and securing long-term support.
" }Should current sustainability metrics, like Water Usage Effectiveness, evolve? Our roundtable discussion highlighted some potential gaps.
Time for a turning point for data centres in the UK
Perhaps the most important takeaway is that the industry is at a turning point. We can’t follow the traditional model: Designing data centres around available infrastructure. Instead, infrastructure pressures are now shaping design from the ground up.
There is no doubt that there are major challenges. But there is also a sense of opportunity. By embracing innovation and collaboration, we have the chance to create a new generation of data centres in the UK that are more efficient and resilient. And they can be more integrated with the systems and communities around them.
As we look ahead, we need to responsibly keep up with demand. There are several initial steps to take.
We need to look at updating reporting metrics and building community engagement into delivery planning. And get started early to work with interested parties. The decisions we make now will shape the future of digital infrastructure for decades.
If we get it right, data centres will play a pivotal role in enabling economic growth, supporting innovation, and driving the transition to a more sustainable energy system.
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