The UK risks losing AI leadership without a national data strategy, experts warn
The UK is at risk of losing its leadership position in artificial intelligence (AI) without a clear national strategy for data centres, a key player in the sector has warned.
Data centers, critical to enabling cloud computing and AI applications, have become the backbone of the digital economy. However, without a unified plan, the UK could fall behind in the global AI race, according to industry experts.
The UK is currently the largest data center in Europe, with over 500 data centres, most of which are concentrated in the South East. These services are essential for everything from personal device browsing to AI learning, providing the power, connectivity, and security needed for big data processing.
Despite this situation, high prices, competition for grid connections, and local resistance have created barriers to further expansion in the South East. This has led some companies to explore opportunities beyond the traditional sector base, with Kao Data emerging from a £350 million development in Stockport, Greater Manchester.
Paul Lamb, CEO of Kao Data, highlighted the importance of a comprehensive strategy: “If we want to be part of the global AI opportunity, we need to invest these resources in the right, sustainable, and growth-prone areas.” He noted that the UK lacked a system a decade ago when cloud computing took off, leading to a concentration of power consumption in west London. Lamb called for a UK wide data center strategy to spread these centers across the country.
The challenge of further expansion in the South East is evident in places such as Abbotts Langley, Hertfordshire, where a proposed data center development has sparked local debate over green belt land. The planning application was initially rejected by the local council, but Housing Minister Angela Rayner called the decision on her first day in office, showing the government’s commitment to growth.
However, the push for more data centers has also raised concerns. Local residents and council leaders say the development of brownfield land should only be allowed if there is significant public benefit. Stephen Giles-Medhurst, leader of Three Rivers Council, said, “We will do everything in our power to refuse this development because it is an inappropriate site, causing serious damage to the green belt.”
Kao Data’s expansion into Greater Manchester represents a potential solution to the challenges facing the South East. By repurposing industrial space and utilizing existing grid connections, this new facility aims to support the growing demand for AI-driven data processing. Andy Burnham, mayor of Greater Manchester, supports the project, recognizing data centers as an important infrastructure for the region’s economic growth.
The UK government recently designated data centers as “critical national infrastructure,” putting them on par with power stations and railways. However, industry experts argue that a comprehensive strategy is needed to ensure the country remains competitive in AI development.
As AI becomes central to global economic growth, the UK must face the challenges of expanding its data center capacity while balancing environmental concerns and local opposition. Without decisive action, experts warn that the UK could miss an important opportunity to lead the AI ​​revolution.
