Report: UK data centres ambitions risk being held back by power constraints

Ros Harris

The UK Data Centre Market in 2026: Navigating demand, power and opportunity brings together insights from industry leaders including CoreWeave, NTT Data, Future Growth Capital, Floral Energy and Savills alongside analysis from Burges Salmon specialists.

It concludes that while demand for data centre capacity continues to accelerate, driven by AI adoption, cloud computing and data sovereignty requirements, power availability is increasingly the key factor determining which projects proceed and which do not.

The report highlights that the UK is home to more than 550 data centres and has set a target of at least 6GW of AI-capable capacity by 2030, yet developers continue to face significant challenges securing electricity connections for new projects.

According to the report, access to reliable and deliverable power has become “the central investment risk, the primary determinant of site value and the gating factor for project financing.

Ros Harris, partner at Burges Salmon and lead of the firm’s data centres campaign, said: “The UK data centre market is at a pivotal moment. The demand is there. The investment appetite is there. Government policy is increasingly supportive. But the industry is now confronting a reality that many sectors are facing simultaneously: power has become the defining constraint and sustainability considerations are increasingly more important.

“The conversation has moved beyond where demand will come from. The focus now is on deliverability. The organisations that successfully navigate power availability, planning, financing and delivery risk will be best placed to capture one of the most significant infrastructure opportunities of the coming decade.”

The report identifies a number of trends reshaping the sector, including:

• Growing demand from AI-driven workloads and next-generation digital infrastructure
• Increasing emphasis on power security, grid access and alternative energy solutions
• Planning reforms and the growing significance of data centres as Critical National Infrastructure
• Rising investor interest in digital infrastructure assets
• Greater focus on sustainability, energy efficiency and community engagement
• Emerging opportunities around heat networks, renewable energy integration and innovative power solutions.

The report also suggests that the UK remains one of Europe’s most attractive markets for data centre investment, but faces intensifying competition from regions offering faster grid connections, lower energy costs and fewer delivery constraints.

Mr Harris added: “Data centres have rapidly evolved from a specialist real estate asset into critical infrastructure underpinning the modern economy. The sector sits at the intersection of energy, planning, real estate, construction, finance, technology and regulation.

“That complexity creates challenges, but it also creates enormous opportunities. The organisations that can bring together the right expertise, secure power effectively and engage positively with stakeholders and communities will help shape the next phase of the UK’s digital economy.”