Awarding Critical National Infrastructure status to data centres will ensure the UK can deliver the computing capacity to help drive economic growth. Now, it’s crucial to locate these vital assets in areas with abundant power.
The UK is poised for an explosion in demand for fast, reliable and secure data.
In 2022, data centres accounted for 2.5% of the UK’s electricity consumption. National Grid chief executive John Pettigrew anticipates this share will increase six-fold by 2035, to meet demand for energy-intensive computing infrastructure needed for machine learning, artificial intelligence (AI), quantum computing and data-rich streaming services.
Fast tracking data centre development
In recognition of the importance of data centres to UK industries such as biotech, healthcare, aerospace and defence, and the economy overall, these buildings have earned Critical National Infrastructure (CNI) status, this allows data centres to be built faster to meet growing demands. For instance, the planning application for a £4bn data centre in Hertfordshire could see operations commence by 2029.
Siting of data centres on UK shores ensures everyone’s data – from the personal to that held and used by private and public enterprises – will be safer from cyber-attacks, environmental disasters and IT blackouts. Delivering these assets will also attract investment, since every megawatt (MW) of IT load costs £10-12m.
Power is the key factor
However, the UK needs to be strategic in terms of where to direct investment in this infrastructure. Access to power is a fundamental consideration for data centre owners and operators. A readily available grid connection is high up on the priority list. Data centres are power-hungry, to run computers and their associated cooling infrastructure, so siting them relatively near to renewable energy generation ensures access to low-carbon and low-cost electricity, driving down their operational cost so operators can maximise scalability over time.
Hyperscalers are some of the biggest spenders on renewable energy, with Amazon, for example, investing more than £285m in the UK between 2014 and 2022. Such investments usually take the form of power purchase agreements (PPAs) that fix a price of electricity for a period of years. The offtaker benefits from a supply of cheap power, decarbonising its operations in the process. The developer has revenue certainty to proceed with a project’s construction. Earlier this year Amazon signed a corporate PPA to take 473MW power from Ocean Winds’ 882MW Moray West offshore wind farm being built off north-east Scotland.
Scotland: Abundant power and grid capacity
In the UK’s south, grid connections are become scarcer with long queues to secure licences. In Scotland, they are more plentiful and renewable energy supply outstrips demand, with Scottish wind farms subject to higher rates of curtailment than those in other regions.
According to National Energy System Operator (NESO), one of the most congested areas on the GB electricity network is around the border between Scotland and England and this is projected to get worse, demanding significant investment to ensure the system can be run in an economic and efficient manner.
In addition to building new transmission lines and connections to transport power to main sources of demand in south-east England, locating data centres north of the border will absorb gigawatts of capacity. National Grid’s planning processes assume a 5GW increase in demand by the mid-2030s and locating an additional 5GW of flexible demand (a 10GW demand increase in total), like data centres or electrolysers, behind transmission bottlenecks within Scotland could save consumers £5bn and avoid the need for some network reinforcements.
Apatura: Ready to meet the demand
Apatura is strategically positioned to help address the UK’s growing data centre needs. With 5GW of grid connection applications across central Scotland — set to be awarded by 2030 — Apatura has access to prime locations near major urban centres like Edinburgh and Glasgow. Many of these sites are located on the fringes of urban areas, close to industrial zones, making them prime locations for development and regeneration.
A data centre with a 300MW IT load can generate approximately 500 construction jobs and 200 permanent roles, contributing millions annually in business rates and over £1bn in indirect economic benefits. Expanding data centre infrastructure in regions like Scotland can mirror successful models seen in the Nordics, creating wealth and opportunities while aligning with the UK’s push for decarbonisation.
UK data centres already generate an estimated £4.6bn in revenues a year but there is untapped opportunity to expand further north distributing wealth, jobs, and economic growth. With Scotland’s abundant renewable energy, now is the time to act.
