If you’re reading this, you’re probably like most of us: constantly streaming, banking online, working remotely, or using AI tools without a second thought about what makes it all possible. The truth is data centres are the quiet heroes powering it all. As CEO of VIRTUS Data Centres, and in my previous roles, I’ve spent years championing this infrastructure, and I’m more convinced than ever that the UK needs a strong, home-grown data centre sector to thrive in the AI era. Here’s why...
Why data centres power everyday life in the UK
Think about your day. You stream a film on the train, check your bank balance, submit a tax return, or use AI to help with a presentation. Every single one of those actions relies on data centres that store, process, and secure massive amounts of data.
We’re not talking about some niche tech thing tucked away in industrial estates. Data centres are the central nervous system of modern Britain. The shift to remote work, digital healthcare, online education, and electric vehicles (EVs) has shown just how vital they are. EVs, for instance, depend on data centres for everything from real-time battery management and software updates to integrating with smart charging networks and the wider energy grid.
AI is accelerating this demand dramatically. Whether it’s predictive analytics in the NHS, fraud detection in banking, or generative tools transforming creative industries, these technologies need serious compute power. Domestic data centres deliver the low latency that makes real-time applications work seamlessly. They also keep our data under UK jurisdiction, which is crucial for GDPR compliance and protecting against geopolitical risks or overseas disruptions.
At VIRTUS, we see this every day across our facilities. We’re proud to support the digital services that keep the country running, ensuring reliability, security, and sovereignty.
The economic and regional benefits of UK data centres
Data centres aren’t just about technology. They are powerful economic engines that create thousands of high-skilled jobs in engineering, construction, facilities management, and tech. They regenerate brownfield sites, turning derelict land into vibrant, future-focused hubs. And they attract investment in adjacent sectors like fintech, advanced research, and high-performance computing.
A great example is our Saunderton Campus in Buckinghamshire. For 15 years, this former Molins tobacco machine factory site sat unused – a classic brownfield eyesore. We’ve transformed over 50 acres into a state-of-the-art 78MW AI-ready development. With environment-blending living roofs and cutting-edge design, it’s delivering high-value digital infrastructure while breathing new life into the local area and complementing the established Slough ecosystem.
This story is repeating across the UK. From Greater Manchester and South Wales to the North East and Scotland, data centres are replacing declining industries with high-value jobs and supporting regional growth. In Slough, Europe’s largest cluster has swapped manufacturing roles almost one-for-one while generating substantial business rates. The multiplier effect is real. According to PwC, every direct data centre job supports more than six others in the wider supply chain.
UK data centre investment: where the money is going
The private sector is stepping up in a big way. At VIRTUS, we’ve already invested £1.7 billion in UK infrastructure and have committed another £2.7 billion over the next five years. We operate 13 live facilities, delivering 100% uptime for critical national services.
We were the first data centre operator in the UK to run on 100% renewable energy, and we maintain a net zero emissions approach. Around 17% of our power comes directly from offshore wind through long-term Power Purchase Agreements (PPAs). It’s exciting to see how data centres can partner with the UK’s renewable energy growth to drive decarbonisation.
The wider industry pipeline is impressive. There were around £36.4 billion in planned projects as of mid-2025. This isn’t speculative. It’s patient, long-term capital building the resilience our economy needs.
What the UK data centre sector needs to grow
Of course, it’s not all smooth sailing. We face real hurdles that need addressing if the UK is to fully capitalise on this opportunity.
Planning processes need to be faster and clearer for strategic projects. Energy grid connections can be a bottleneck with long queues and high costs delaying progress. Electricity prices in the UK remain some of the highest in Europe, which risks pushing investment elsewhere. We also need a stronger talent pipeline through apprenticeships and training, plus expanded fibre networks to support regional growth.
The good news? Progress is happening. Reforms in 2026 are starting to prioritise critical infrastructure, and there’s growing recognition of data centres as national assets. With the right support, techUK modelling suggests the sector could deliver an extra £44 billion in GVA and over 58,000 jobs by 2035.
Data centre myths, busted
I hear a lot of misconceptions, some of which I can help clarify:
Myth 1: Do data centres drain local water supplies?
Modern facilities use closed-loop or water-efficient cooling systems. VIRTUS’ LONDON8 facility in West London, an average sized UK data centre with an 18MW of IT load required just 527 litres of water top-up in 2025. That sounds like a lot, but let’s give it some context. According to Water UK, the average UK household of four uses just under 200,000 litres of water per year. The cooling system at LONDON8 uses 0.3% of the water a family of four uses over the same period.
Myth 2: Do data centres burden the grid and run on dirty energy?
We connect to high-voltage supplies and are major buyers of renewable energy. Leading operators, including VIRTUS, are powering operations through PPAs with wind and solar, stimulating new renewable projects rather than competing for local power.
Myth 3: Do data centres take land needed for housing?
We predominantly use brownfield and industrial sites. Smart design such as higher densities minimise land use, and AI Growth Zones encourage complementary development.
Myth 4: Are data centres only built in London?
While London is a powerhouse, new hubs are rising across the North, Midlands, Wales, and Scotland, driven by power availability, climate advantages, and regeneration opportunities.
The economic multiplier effect explained
When data centres thrive, the whole economy benefits. The sector already contributes billions in GVA annually. Construction creates hundreds of roles, operations provide well-paid skilled positions, and clustering effects attract AI firms, cybersecurity companies, and research institutions.
In places like Slough, the impact includes tens of millions in annual business rates and thousands of supported jobs. Nationally, this infrastructure supercharges fintech, creative industries, manufacturing, and public services delivering productivity gains that ripple across society.
Building a resilient, sustainable digital future
As AI and digital adoption accelerate, the choice is clear. We can treat data centres as critical national infrastructure and the cornerstone of success in the digital age or risk falling behind, with higher latency, reduced sovereignty, and lost opportunities.
At VIRTUS, we’re committed to doing our part. That means investing boldly, operating sustainably, and delivering reliable capacity. But we need partnership from policymakers, regulators, and communities to streamline planning, modernise the grid, maintain competitive energy costs, build talent, and expand connectivity.
The UK has the ingredients – private capital, innovation, renewable potential, and ambition. By addressing the challenges head-on, we can build a digitally sovereign, economically vibrant, and sustainably powered future.
Data centres aren’t a luxury. They’re the bedrock of our national resilience and prosperity. Let’s invest in them