Telehouse breaks ground on new London data centre

Telehouse International Corporation of Europe, a global data centre service provider and subsidiary of telecommunications company KDDI Corporation, has today broken ground on the new Telehouse West Two data centre at its existing London Docklands campus - which Telehouse says is the most connected data centre campus in Europe. The £275m investment in the new data centre is set for completion in 2028. Flynn Management & Contracting, an international construction and fit-out company, will work with Jones Engineering Group, specialists in mechanical, electrical, and fire protection, to deliver the project. Strategically located close to London’s financial district, the new facility will be purpose-built to support the rapid adoption of emerging technologies such as AI. The new facility will integrate both air and liquid cooling technologies to meet growing demand for high density compute environments, allowing customers to scale without compromise. Telehouse West Two will offer two meet-me rooms and four dedicated secure connectivity risers. Designed with sustainability, resiliency, and security at its core, Telehouse West Two will offer uptime guarantees of 99.999% to ensure uninterrupted operations for customers. The data centre has been designed to BREEAM Excellent standards, indicating a high level of environmental performance against a widely recognised sustainability assessment for buildings. 100% renewable energy will power its operations. The new facility will deliver exceptional efficiency with very low WUE and PUE, while also supporting sustainability objectives with heat recovery potential and HVO-fuelled backup generators. The new data centre represents a significant step in Telehouse’s long-term strategy to expand its presence in London, where it has maintained a presence for more than 35 years. This latest development in London strengthens Telehouse’s global growth trajectory, meeting the rising demand for advanced digital infrastructure and empowering enterprises to accelerate their digital transformation. Kenkichi Honda, Managing Director at Telehouse Europe, says, “The new Telehouse West Two site marks another important step in our ongoing mission to deliver world-class, sustainable digital infrastructure. This expansion will empower digital transformation for enterprise clients across multiple sectors, enabling them to benefit from emerging technologies which are shaping the future world, while supporting the uncompromising need for energy efficiency and carbon neutrality.” The nine-storey building will cover a total gross area of 32,000m², including 11,292m² of white space across six levels, on floor customer storage and plant areas. With flexibility central to the design, the layout will incorporate associated switchgear, UPS systems, chilled water cooling, and a floor-by-floor ventilation plant to support a wide range of customer requirements. The site will also be powered by two new 132kV substations which will provide 11kV across the wider campus, enabling an overall building capacity of 33MW. Each floor will be capable of delivering up to 4.4 megawatts (MW) of power capacity ensuring the resilience and scalability required for future growth. To ensure the highest levels of protection, the facility will be equipped with multi-layered physical security and advanced threat detection, including 24/7 surveillance, on-site security personnel, and real-time incident response protocols. Kevin Flynn, CEO of Flynn Management & Contracting, comments, “We’re proud to have once again been appointed by Telehouse for a new building project. Our team is ready to deliver on the company’s vision for a data centre that meets the ever-growing digital needs of companies, and it’s a great opportunity for us to further enhance our presence in the capital’s data centre market.” Brendan McAtamney, Group Director, Jones Engineering Group, adds, “We’re delighted to work with Flynn Management & Contracting on the engineering and installation of services to Telehouse West Two. This is a fantastic opportunity for us to work on a major data centre project in the heart of London, and we’re looking forward to getting started.” For more from Telehouse, click here.

Pressing challenges impacting the future of US data centres

In this exclusive article for DCNN, Matt Coffel, Chief Commercial and Innovation Officer at Mission Critical Group (MCG), explores how growth in the US data centre market is being affected by increasing challenges, demanding new levels of collaboration and innovation across the sector: An increasingly omnipresent industry Data centres and related facilities are everywhere today. Synergy Research Group states hyperscalers account for 44% of those facilities worldwide, while non-hyperscale colocation and on-premise account for 22% and 34% respectively. They also project that by 2030, hyperscalers will account for 61% of all data centres and related facilities. While there are no definitive estimates on how many of these facilities will be constructed in the US in the coming years, planning and development in the country are happening faster than ever before. Take, for example, the recent developments in Pennsylvania regarding investment in data centres and other technology infrastructure to support AI, including significant investments from Amazon and CoreWeave. With AI adoption surging and data generation accelerating in sectors like healthcare, financial services, and the federal government, the number of data centres is only set to grow. But as demand rises, so too do the obstacles. Data centre operators and their partners face mounting challenges that threaten timelines, drive up costs, and complicate efforts to scale efficiently - and there are no easy fixes. Persistent and critical challenges When it comes to the construction of a data centre, there are many factors to consider. However, four factors have emerged as critical challenges for data centre operators and their partners: permitting, power, skilled talent, and compute. 1. Regulation: Securing permits to build and operate Even as demand for compute and power accelerates, operators are forced to navigate lengthy and often inconsistent approval processes. In some jurisdictions, permitting can take two to three years before projects can even break ground. These delays put US developers at a disadvantage compared to countries with more streamlined regulatory systems. The challenge is compounded by the sheer scale of today’s facilities. Projects promising multiple gigawatts of capacity require not only land and power, but also regulatory sign-off on issues such as environmental impact, emissions, and noise. These reviews often involve multiple parties - utilities, consultants, environmental specialists, and local governments - which makes coordination slow and uncertain. Moreover, the difficulty varies widely by location. In cities like Austin in Texas, approvals can be tough to secure, while just miles outside the city limits, the process may move much faster. 2. Time to power According to the International Energy Agency’s (IEA) Energy and AI report, “Power consumption by data centres is on course to account for almost half of the growth in electricity demand between now and 2030 in the US.” This rising demand is evident in Northern Virginia, where a large cluster of data centres has been built over the past twenty years. With this cluster of data centres in a single area, along with the demands from AI and data processing loads, power substations have reached maximum capacity. This has forced utility providers and data centre operators to either bring in new lines from distant locations - where there is excess power, but transmission infrastructure is lacking - or to build new data centres in rural areas so they can access untapped power. Yet, building new transmission lines from other locations or setting up data centres can take years and doesn’t address the current power demand. 3. Access to skilled talent to support current and future projects Data centre operators and their partners are working to build new facilities across the US, often in remote parts such as Western Texas, where they can access untapped power sources. Building in these areas introduces several challenges related to skilled labour. Building and maintaining a data centre requires highly skilled electricians, mechanics, and controls specialists who can handle complex electrical and mechanical systems and often on-site power generation. However, the US faces a nationwide shortage of these workers. The US Bureau of Labor Statistics forecasts that employment for electrical workers will grow by 11% from 2023 to 2033 - a much faster rate than the average for all jobs. Still, many electricians are nearing retirement and set to leave the field in the coming years. This is likely to create a gap that operators will find difficult to fill as they work to build and keep their facilities running. Additionally, data centre operators and their partners face the reality that many skilled workers are unwilling to live far from population centres. Recent estimates from Goldman Sachs Research underscore the scale of this challenge. It projects that the US will require 207,000 more transmission and interconnection workers and 300,000 extra jobs in power technologies, manufacturing, construction, and operations to support the additional power consumption needs projected for the US by 2030. This dual challenge of labour scarcity and logistical complexity is making traditional, on-site construction methods increasingly untenable. As a result, the industry is pivoting towards prefabricated, modular power solutions that are engineered and assembled in a controlled factory environment. This approach mitigates the impact of localised labour shortages by capitalising on a centralised, highly skilled workforce and deploying nearly complete, pre-tested power modules to the remote data centre location for rapid and simplified final installation. 4. The accelerating pace of change in compute technology The speed at which compute technology is evolving has reached an unprecedented level, putting enormous pressure on data centre operators and their partners. Moore’s Law is no longer the standard; today’s compute configurations are far more advanced than ever before, with denser platforms being released every 12 to 18 months. This rapid cycle forces operators to rethink how they design and future-proof facilities - leveraging concepts such as modularisation - as infrastructure built just a few years ago can quickly fall behind. The need for collaboration Each of these challenges is significant on its own, but together they mark one of the most complex periods in the history of infrastructure development. To move forward, data centre operators, utilities, manufacturers, technology providers, and government agencies must work closely to identify solutions and provide support for each obstacle. On the skilled labour front, companies outside the manufacturing space are also contributing. Earlier this year, Google pledged support to train 100,000 electrical workers and 30,000 new apprentices in the US. This funding was awarded to the electrical training ALLIANCE (etA), the largest apprenticeship and training program of its kind, founded by the International Brotherhood of Electrical Workers and NECA. State leaders are playing a role as well. In Pennsylvania this summer, for example, the governor and other legislators have demonstrated strong support for data centre growth. MCG, a manufacturer and integrator of power and electrical systems, is one example of how industry players are stepping up. MCG designs, manufactures, delivers, and services systems tailored for data centre operators and other mission critical environments. In collaboration with operators and other equipment and technology providers, MCG produces modular power systems that are built off-site to ease workforce constraints. These systems are then delivered directly to data centres or their power facilities, where the MCG team commissions and maintains them. With efforts from government officials, companies like MCG and Google, and other stakeholders, the US data centre industry can continue powering the digital future - no matter how much demand for power and compute increases. For more from Mission Critical Group, click here.

AI infrastructure as Trojan horses for climate infrastructure

Data centres are getting bigger, denser, and more power-hungry than ever before. The rapid rise of artificial intelligence (AI) is accelerating this expansion, driving one of the largest capital build-outs of our time. Left unchecked, hyperscale growth could deepen strains on energy, water, and land - while concentrating economic benefits in just a few regions. But this trajectory isn’t inevitable. In this whitepaper, Shilpika Gautam, CEO and founder of Opna, explores how shifting from training-centric hyperscale facilities to inference-first, modular, and distributed data centres can align AI’s growth with climate resilience and community prosperity. The paper examines: • How right-sized, locally integrated data centres can anchor clean energy projects and strengthen grids through flexible demand, • Opportunities to embed circularity by reusing waste heat and water, and to drive demand for low-carbon materials and carbon removal, and • The need for transparency, contextual siting, and community accountability to ensure measurable, lasting benefits. Decentralised compute decentralises power. By embracing modular, inference-first design, AI infrastructure can become a force for both planetary sustainability and shared prosperity. You can download the whitepaper for yourself by clicking this link.

Why resilient cooling systems are critical to reliability

In this exclusive article for DCNN, Dean Oliver, Area Sales Manager Commercial (South and London areas) at Spirotech, explores why uninterrupted operation of data centres - 24 hours a day, 365 days a year - is no longer optional, but essential. To achieve this, he believes robust backup systems, advanced infrastructure, and precision cooling are fundamental: The importance of data In today's digitally driven economy, data is the backbone of intelligent business decisions. From individuals and startups to multinational corporations and financial institutions, the protection of personal and commercial information is more vital than ever. The internet sparked a technological revolution that has continued to accelerate - ushering in innovations like cryptocurrencies and, more recently, the powerful rise of artificial intelligence (AI). While these developments are groundbreaking, they also highlight the need for caution and infrastructure readiness. For most users, the importance of data centres only becomes clear when systems fail. A 30-minute outage can bring parts of the economy to a halt. If banks can’t process transactions, the consequences are immediate and widespread. Data breaches can have a significant impact on businesses, both operationally and financially. This year alone, several high-profile companies have been targeted. Marks & Spencer, for example, reportedly suffered losses of around £300 million over a six-week period following a cyberattack. These and other companies affected by such problems underline just how dependent our society is on digital infrastructure. Cyberattacks, like denial-of-service (DoS) assaults, are a real and growing threat. But even without malicious intent, data centres must operate flawlessly, with zero downtime. Central to this is thermal management, including cooling systems that maintain optimal conditions to prevent system failure. Why cooling is key Data centres generate significant heat due to dense arrays of servers and network hardware. If temperatures are not precisely controlled, systems risk shutdown, data corruption, or permanent loss - an unacceptable risk for any organisation. Cooling solutions are mission-critical. Given the security and performance demands on data centres, there’s no room for error. Cutting corners to save on cost can have catastrophic consequences. That’s why careful planning at the design stage is essential. This should factor in redundancy for all key components: chillers, pumps, pressurisation units, and more. Communication links between these systems must also be integrated to ensure coordinated operation. The equation is simple: the more computing power you deploy, the greater the cooling demand. Cloud infrastructure consumes enormous amounts of energy and space, requiring 10s of megawatts of power and covering thousands of square metres. If the cooling system fails - whether from chiller malfunction or control breakdown - data loss on a massive scale becomes a very real possibility. That’s why backup systems must be immediately responsive, guaranteeing continued operation under any condition. Keeping systems operating Today, there are innovative control systems available, like those offered by Spirotech, that offer detailed insights into system performance and which capture operational data from pumps, valves, pressurisation units, and vacuum degassers. This enables early detection of potential issues and provides trend analysis to support proactive maintenance. For example, vacuum degassers can show how much air has been removed over time, while pressurisation units monitor pressure levels, leak events, and top-up activity. These systems work in tandem, ensuring balance and continuity. If a fault occurs, alerts are instantly dispatched to relevant personnel. A poorly designed or maintained pressurisation system can result in negative pressure, leading to air ingress via vents and seals - or, conversely, excessive pressure that causes water discharge and frequent refills. Air and dirt separators are also crucial to system health, preventing build-up and ensuring smooth operation across all pipework and components. Conclusion Effective cooling is essential for data centre systems due to the high demands on security and performance; there's no tolerance for failure. Inadequate or poorly designed cooling can lead to disastrous outcomes, including potential large-scale data loss. To prevent this, detailed planning during the design phase is crucial. This includes building in redundancy for all major components like chillers, pumps, and pressure units, and ensuring these systems can communicate and function together reliably. As computing capacity increases, so does the need for robust cooling. Modern cloud infrastructure uses vast amounts of power and physical space, placing even greater stress on cooling requirements. Therefore, backup systems must be fast-acting and fully capable of maintaining continuous operation to avoid downtime and protect data integrity, regardless of any component failures. For more from Spirotech, click here.

Reuters Energy LIVE is fast approaching

Reuters Events: Energy LIVE is heading to the heart of the energy capital in Houston, Texas, USA, this 9-10 December. Momentum is building with more than 1,500 energy professionals - including bp, Constellation, Entergy, ENGIE, Next Decade, and more - already registered. Register now to explore solutions from: • Digital transformation leaders and AI innovators• Infrastructure developers and data centre operators• Project developers across renewables, hydrogen, and LNG• SMR and advanced reactor specialists• Energy storage providers and grid modernisation experts Your free expo pass gives you access to: • Startup pitches judged by top VCs, with live audience voting• Roundtable discussions on industry-critical topics• Structured networking including 1:1 meetings, community meetups, and speed dating sessions• Themed exhibition tours spotlighting AI, digital, and emerging tech There will also be live podcasts and expo stage sessions featuring senior leaders from Dominion Energy, Sempra Infrastructure, Petrobras America, Woodside Energy, POET, J.P Morgan, Siemens, Halliburton, Mitsubishi Power, and Breakthrough Energy. Join a community of over 3,000 attendees and more than 100 exhibitors, innovators, investors, solution providers, venture capitalists, energy producers, and project developers for two days of high-impact networking, discovery, and insight. Register for your free pass and start your Energy LIVE journey today. For more from Reuters, click here.

London's data centres could heat 500,000 homes

According to a new report from global infrastructure company AECOM, London’s data centres are releasing enough waste heat to warm up to half a million homes each year, yet much of this potential energy is being lost to the atmosphere. Commissioned by the Greater London Authority (GLA) and conducted in partnership with asset management and commercial consultants HermeticaBlack, the study reveals that up to 1.6 terawatt-hours of heat could be recovered each year from the capital’s data centre estate - equivalent to meeting all the heating and hot water needs for all homes in Ealing. The report - Optimising Data Centres in London: Heat Reuse - identifies opportunities to adjust planning and infrastructure policy to unlock this potential for London and sets out recommendations including updated planning guidance, targeted infrastructure incentives, and a standardised framework for activating heat offtake from data centre operators. This includes making sure the designs for all future data centres optimise the ability to re-use waste heat. The potential of heat recovery The uptake of heat recovery in London is currently limited, but AECOM’s report identified cities around the world, including Geneva, that are utilising as much as 95% of the heat recovered from a data centre. The infrastructure consultant says that UK cities, including London, have an opportunity to heat new homes with clean, affordable energy. The report estimates, based on the quantum of heat being currently lost, there is the potential to heat up to half a million homes. When this model was tested across London’s data centre dataset, it evidenced the network could provide enough heat to supply around 350,000 homes. With more than one in eight London households in fuel poverty, and the UK still heavily reliant on gas boilers for home heating, the report highlights the social as well as environmental case for change. Data centres - often located in densely populated parts of East and West London - offer a local, low-carbon source of heat for nearby homes, schools, and public buildings. The added value of data centres Data centres are critical to catering for the increasing demand for AI and high-performance computing. The computing power required generates higher server temperatures, creating higher-grade waste heat more viable for reuse. Asad Kwaja, Associate Director, Sustainability & Decarbonisation Advisory at AECOM, says, “The UK needs complex digital infrastructure to enable its ambitions to become a leader in AI. "Data centres lie at the heart of this conversation, but we must consider their wider use if they are going to play an integral part of the UK’s infrastructure landscape. Data centres should no longer be considered as just an energy consumer; they can become a part of the whole energy ecosystem. “London is one of the biggest data centre hubs across Europe, the Middle East, and Africa, and hosts 80% of the UK’s capacity. With the right planning, coordination, and investment, London’s data centres could play a pivotal role in decarbonising the heat needed to power the influx of new homes the capital needs to build to address the housing crisis, while also cutting bills for existing residents and improving local energy resilience.” A scheme to capture the waste heat from data centres is already underway in North West London. In 2023, the Old Oak and Park Royal Development Corporation (OPDC) secured £36 million in funding from the government to deliver a heat network, developed by AECOM, to serve 95 gigawatt-hours annually, recovering heat from up to three data centres.

DC BLOX to expand Myrtle Beach landing station

DC BLOX, a provider of connected data centre and fibre networks, has announced the planned expansion of its Myrtle Beach cable landing station in South Carolina, USA. The company has acquired approximately 20 acres of adjacent land within the Myrtle Beach International Technology and Aerospace Park (ITAP) with the potential to accommodate up to five additional subsea cables and an additional 20MW of power from the current on-site substation. The Myrtle Beach cable landing station (MYR1) opened in 2023 and was developed to enable a resilient international communications gateway for subsea cable access into the southeastern US from western European countries, South America, the Caribbean, and Africa. MYR1 is the largest facility of its kind on the Eastern Seaboard. MYR2 will complement existing subsea cables already landing in Myrtle Beach (including Firmina, Anjana, and Nuvem), enhancing the region’s role in connecting the US with the world. Expanding existing connectivity Jeff Wabik, Chief Technology Officer at DC BLOX, says, “Demand for landing subsea cables in Myrtle Beach has been extraordinary and the rapid addition of new carrier partners into MYR1 has significantly enhanced the facility’s connectivity ecosystem. “By preparing for MYR2, DC BLOX is enabling new digital infrastructure development across the region by global hyperscale companies and ensuring continued growth of the Southeast’s digital economy.” Sandy Davis, Myrtle Beach Regional EDC President & CEO, comments, “The continued growth of DC BLOX in our community is the vision presented by their leadership in 2021. "DC BLOX is an extraordinary company committed to providing technology services and community partnerships as promised. We are excited to have DC BLOX expand in Horry County and to house the largest facility of its kind on the Eastern Seaboard in our county." Pending additional demand, the new MYR2 facility would be built adjacent to MYR1 within ITAP, a site that offers a solid coastal location for subsea systems. Once completed, the two facilities combined would support up to ten subsea cables, strengthening international connectivity and advancing Myrtle Beach’s position as a global cable landing destination. For more from DC BLOX, click here.

Schneider Electric advances 800 VDC power systems

Schneider Electric, a French multinational specialising in energy management and industrial automation, has outlined its latest developments in 800 VDC power architectures, designed to meet the growing demands of high-density rack systems across next-generation data centres. The company says the move reflects a broader industry transition towards higher power densities and greater efficiency, as artificial intelligence (AI) workloads drive increased compute intensity. Schneider Electric is developing its approach around system-level design, integrating power conversion, protection, and metering to ensure performance, scalability, and safety. Jim Simonelli, Chief Technology Officer for Data Centres at Schneider Electric, explains, “The move to 800 VDC is a natural evolution as compute density increases and Schneider Electric is committed to helping customers make that transition safely and reliably. "Our expertise lies in understanding the full power ecosystem, from grid to server, and designing systems that integrate seamlessly and operate predictably.” Collaboration with NVIDIA on 800 VDC sidecar Schneider Electric is working with NVIDIA to develop an 800 VDC sidecar capable of powering racks of up to 1.2 MW. The sidecar is designed to support future generations of NVIDIA GPUs and accelerated computing infrastructure by converting AC power from the data centre into 800 VDC. According to Schneider Electric, the design enables safe and efficient megawatt-scale rack power delivery while helping to minimise infrastructure and material costs. The sidecar includes: • Modular power conversion shelves• Integrated short-term energy storage for load smoothing and backup• Live Swap capability for safer maintenance• High energy efficiency The company says the development reflects its wider 'system-level' approach, which focuses on the complete power infrastructure rather than isolated components. This includes optimising conversion technology, intelligent metering, and integrated protection systems to improve operational efficiency and support scalable, high-density deployments. Safety, reliability, and validation Schneider Electric reports that its 800 VDC power systems are backed by extensive modelling, simulation, and testing. This includes fault current and arc flash analysis, as well as certified laboratory environments designed to replicate real-world conditions. The company’s safety and validation processes are aimed at ensuring predictable performance, simplified maintenance, and operational resilience, which are all key factors for facilities deploying high-density AI and high-performance computing racks. Dion Harris, Senior Director of HPC, Cloud, and AI Infrastructure Solutions GTM at NVIDIA, says, “Scalable power architectures are the foundation for next-generation AI infrastructure that maximises both performance and efficiency. "NVIDIA and Schneider Electric are building on our longstanding partnership to design and deliver advanced 800 VDC power systems that will support AI applications driving the industrial AI revolution.” For more from Schneider Electric, click here.

Planera secures $8m to support data centre expansion

Planera, a US provider of construction scheduling and planning software, has announced an additional $8 million (£6 million) in funding to expand its work within the data centre construction sector. The company, which develops collaborative scheduling software for construction projects, says the funding will support wider adoption among contractors and subcontractors involved in complex data centre builds. The latest investment follows the company’s 2024 Series A round and brings total funding to $26.5 million (£19.9 million). According to Planera, the new capital will be used to enhance its platform and deepen engagement with data centre clients. Supporting large-scale construction projects Planera says it has developed tailored services for data centre contractors, supported by a dedicated team with experience in mission-critical construction. The company has also introduced new AI tools designed to identify potential schedule risks earlier and improve project delivery timelines. Current customers include: • HITT Contracting, which uses Planera to improve visibility on data centre project progress and accelerate delivery. • Ralph L. Wadsworth (RLW), which employs Planera to coordinate complex builds for major technology clients, helping to improve collaboration and reduce schedule compression. • Ryan Companies US, which uses the platform for collaborative scheduling, subcontractor resource analysis, and integration with master schedules. Industry research highlights the scale of the sector’s growth, as Grand View Research estimates the global data centre market at around $347.6 billion (£261.7 billion) in 2024, rising to $652 billion (£490.9 billion) by 2030. Arizton reports that data centre construction will grow from $91.9 billion (£69.1 billion) in 2024 to more than $214 billion (£161.1 billion) by 2030, driven by investment in hyperscale and AI infrastructure. Nitin Bhandari, CEO of Planera, comments, “With data centre demand increasing worldwide, our customers need modern, collaborative scheduling tools that can match the scale and complexity of these projects. "This new funding will help us focus further on mission-critical work while continuing to support customers across other segments.” The funding round includes participation from Sorenson Capital, Sierra Ventures, Prudence, Brick and Mortar Ventures, Zachry Construction Corporation, and other industry investors. Ken Elefant, Managing Director of Sorenson Capital, suggests, “The adoption of AI is driving intense demand for new data centre capacity. Delays on large-scale projects can have significant financial implications and Planera is well positioned to help contractors deliver on time.” Ranjeet Gadhoke, Vice President of Project Controls at Zachry Construction Corporation, adds, “We use Planera across all our projects and have seen the value it brings to planning and scheduling. This investment reflects our confidence in the platform and its contribution to greater efficiency.” Todd Von Krosigk, Senior Superintendent at HITT Contracting, concludes, “To meet growing data centre demand, we require modern scheduling technology that can keep pace. Planera has become a key partner, giving our teams improved visibility and control.”

Fibre overlooked in UK, delaying 82% of DC projects

Neos Networks, a UK-based B2B connectivity provider, today revealed that 82% of UK data centre operators have delayed site builds or expansion due to fibre availability. 95% of these operators say that access to new, high-capacity fibre networks will now influence their expansion plans. The findings come from new research showing that, despite unprecedented government and enterprise momentum around data centre development and artificial intelligence (AI), fibre remains the critical bottleneck that could slow the UK’s digital growth. However, Neos says the industry is united on the solution: investment in new, high-capacity fibre backbones. The study, carried out in partnership with Censuswide, surveyed data centre operators, enterprise IT leaders and local government stakeholders. Across all three groups, there was a consensus that core fibre networks are the foundation of the UK’s AI infrastructure: • 89% of local government stakeholders report that fibre gaps have delayed infrastructure projects in their regions. • Almost half (45%) of enterprises cite fibre as the key bottleneck holding back AI and digital infrastructure. • Almost half (46%) of local government authorities say their region’s fibre infrastructure is not fully ready to support AI data centres. • One in six companies (16%) doubt the ability of the UK’s current fibre infrastructure to support their AI ambitions. Lee Myall, CEO of Neos Networks, comments, “Over the past decade, we’ve seen a huge amount of investment in last-mile fibre builds, but core fibre networks across the country have received much less attention. Without them, workloads cannot move between data centres, data cannot be trained, and investments stall. "The UK has the ambition, the demand and the regional readiness to lead in AI, but if we don’t address fibre gaps, we risk losing out on one of the greatest economic opportunities of our generation.” AI is reshaping data centre and digital strategy The UK government has set out its ambition to position the country as a global leader in AI, with initiatives such as AI Growth Zones in the AI Opportunities Action Plan central to this vision. The research shows these policies are already shaping investment and strategy across the ecosystem: • 96% of data centre operators say AI Growth Zones are influencing expansion and site selection, with 44% citing them as a strong influence. • 68% of enterprises view AI Growth Zones as a strong driver of change in their infrastructure planning. Importantly, this momentum is fuelling new growth corridors beyond London. While 23% of data centre operators still expect new investment in Greater London, a greater share pointed to the North of England and the Midlands (39%), signalling a shift towards regional hubs of AI activity. This diversification is mirrored in the way compute is being deployed. With data centre sites becoming more dispersed, almost all (97%) data centre operators expect up to half of their UK compute to move to the edge of the network by 2030, underlining the need for high-performance, resilient fibre across every region. But despite this momentum, concerns remain: • 41% of data centre leaders believe the UK’s fibre networks are only partially prepared to support regional AI workloads. • More than 70% of enterprises feel the UK’s attractiveness for data centre investment needs improvement (53%) or is lagging (17%). Unlocking opportunity through new fibre backbones The research highlights a path forward, with new fibre backbone projects critical to unlocking growth. Nearly all respondents agree that investment in high-capacity fibre corridors will transform confidence in the UK’s ability to attract and scale AI projects: • 95% of data centre operators, 96% of enterprises, and 96% of local authorities say new fibre corridors into underserved areas would positively impact AI and data centre growth. • More than half of local authorities (53%) believe such projects would be transformative for their regions. Lee concludes, “AI is no longer a future ambition; it’s here today, reshaping how businesses, communities, and governments operate. "But the UK cannot lead in AI on yesterday’s infrastructure and we need continued investment in the fibre backbones that connect every region of the country. "At Neos, we’re committed to building those foundations so the UK can not only keep pace, but compete and thrive in the global AI race.” For more from Neos Networks, click here.