The number of data centres in the UK is set to increase by almost a fifth, according to new research.

The analysis from construction data experts Barbour ABI shows the country is set to experience a data centre boom with 94 new projects worth an estimated £36.4bn in the pipeline.

Driven by the growth of AI and the demand for cloud-based services, the expansion will increase the number of UK data centres by almost a fifth, confirming its position as one of the world’s leading hubs for digital infrastructure.

There are currently an estimated 477 data centres in the UK, with most new centres planned to be built in the next five years.

Barbour’s analysis shows the majority of developments are concentrated in London and the South-east. Nine are planned in Wales, one in Scotland and five in Greater Manchester.

Regions like Wiltshire, Leicestershire and Cambridgeshire are also experiencing a growth. This is reflective of more cost-effective locations for data centres, with some estimates suggesting it’s up to 40% cheaper in some parts of the UK compared to the London and M25 area.

And as sites in London and the South-east become saturated, there are risks of power and water shortages, meaning the market is likely to develop further from the South-east.

“Data centres are now ‘critical national infrastructure’ to the government, and our analysis shows the UK’s ambition to remain at the forefront of AI and digital infrastructure,” said Barbour ABI’s chief analyst Ed Griffiths.

“However, this growth brings with it challenges around energy consumption, sustainability and planning approvals, all of which must be carefully managed. Some data centre projects have already been held up in the planning process due to the environmental concerns,”

Data centres require large quantities of water to avoid overheating. Barbour ABI says most current owners are not sharing data about their water consumption.

It is likely that future data centre construction projects will focus more strongly on cooling infrastructures, and particularly energy efficient technologies. This may further the trend of data centre hub relocation away from the South -east and closer to the North of the UK. 

Data centre announcements made this year include outline planning being approved for DC01UK’s £3.75bn data centre in Hertfordshire.

When built, the site would be Europe’s largest cloud and AI data centre, with up to two million square feet of space and set in 85 acres adjacent to the A1 and M25, just east of South Mimms Services.

DC01UK has previously said the site could be operational in 2029.