Equinix announces £3.9 billion UK data centre investment

Author: Joe Peck

Digital infrastructure company Equinix has acquired an 85-acre site in Hertfordshire, where it plans to develop a large-scale data centre campus.

The company says it intends to invest £3.9 billion in the project, which is expected to deliver more than 250 MW of compute capacity.

According to Equinix, the campus will support both domestic and international organisations across sectors including healthcare, life sciences, public services, financial services, manufacturing, and entertainment.

The development is also referenced by the company as part of broader ambitions around sovereign AI capability in the UK.

The site, previously known as DC01UK, is expected to create around 2,500 construction jobs and, once operational, more than 200 permanent roles. KPMG estimates that direct and indirect employment could generate roughly £120 million in wages.

KPMG analysis also suggests the project could contribute up to £3 billion in annual Gross Value Added during construction, and up to £260 million once operational, reflecting supply-chain activity and wage spending.

DC01UK, commenting on the sale of its site to Equinix, states, “The deal represents one of the largest infrastructure and real estate transactions in the world in recent years. This milestone transaction marks a defining moment for UK digital infrastructure.

“With a projected total investment value in the region of £3.9 billion, the deal lays the foundation for one of Europe’s largest and most advanced data centre campuses – a project of unprecedented scale and ambition that will drive the next wave of cloud and AI innovation.”

Economic and community impact

Equinix says it intends to work with local organisations on education, skills, and environmental programmes linked to the development.

The company notes it has operated data centres for 27 years and currently runs more than 270 facilities across six continents. In the UK, Equinix supports over 1,300 customers and employs more than 1,200 people.

James Tyler, UK Managing Director at Equinix, says, “The UK is a cornerstone of the global economy and is a natural home for our most substantial investment in Europe to date. This development brings a significant amount of data centre capacity to Britain, contributing to the government’s AI growth ambition.

“But this investment goes far beyond building the infrastructure needed to unlock the UK’s digital potential; it’s the evolution of an ongoing partnership with the local and national community.”

Liz Kendall, Secretary of State for Science, Innovation, and Technology, comments, “This £3.9 billion investment is a huge win for Britain. It will give businesses – from life sciences to high street banks – the ability to connect to thousands of other businesses across the world in an instant, powering our AI ambitions, boosting growth and creating hundreds of well-paid jobs.

“This is about making sure the UK is at the forefront of the digital revolution and ensuring that every community benefits from the opportunities this new technology brings.”

Luisa Cardani, Head of Data Centres at techUK, adds, “This announcement reflects the scale of opportunity the UK has to strengthen its digital foundations.

“As highlighted in our Foundations for the Future report, data centres are the backbone of our economy: they enable innovation, productivity, and growth across every sector.

“Continued investment in sustainable, resilient digital infrastructure will be critical to delivering on the UK’s ambitions for AI and long-term economic prosperity.”

Sustainability measures and site plans

The company states that all its sites in Europe, including the UK, are powered by 100% renewable energy, and it is targeting global coverage by 2030.

At the Hertfordshire campus, Equinix plans to use dry-cooling technology, to retain more than half the land as open space, and to create ecological habitats to achieve at least a 10% biodiversity net gain.

Equinix also says the campus will be designed to enable heat reuse for local benefit in the future.

The company’s existing UK presence includes 14 data centres, which support UK-based and global customers, and heat export capability across sites.

For more from Equinix, click here.