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The UK is set to see a near 20% increase in data centres, according to figures shared with BBC News. These vast facilities, which power everything from movie streaming to online banking, currently number around 477 nationwide.

Construction analysts at Barbour ABI say planning documents point to almost 100 more being built, driven largely by the surge in artificial intelligence (AI) and its demand for processing power. Most will be completed within the next five years, though concerns are growing about the energy and water they will require and the potential knock-on costs for consumers.

Over half of the planned sites are in London and surrounding counties, with major investments coming from US tech giants such as Google and Microsoft, as well as global investment firms. Others are planned across the UK, including nine in Wales, one in Scotland, and five in Greater Manchester.

One of the largest projects will be a £10bn AI data centre in Blyth, Northumberland, backed by Blackstone Group. Covering 540,000 square metres across 10 buildings, it will occupy the former Blyth Power Station site, with construction expected to begin in 2031 and last over three years.

Microsoft plans four new UK sites costing £330m, two in Leeds, one near Newport in Wales, and a five-storey facility in Acton, London all targeted for completion between 2027 and 2029. Google is investing £740m in a Hertfordshire centre, designed to use air-based cooling instead of water.

The UK is already the world’s third-largest data centre hub, behind the US and Germany, and the government considers them critical national infrastructure. However, the National Energy System Operator warns that the projected growth could add up to 71 terawatt-hours to Britain’s electricity demand over the next 25 years, intensifying the need for clean power sources like offshore wind.

Some in the industry say high UK energy prices and slow planning approvals risk pushing developments abroad. Planning permission can take up to seven years, according to Equinix’s regional president Bruce Owen.

Environmental concerns are also mounting. Data centres often consume large volumes of water for cooling, yet operators rarely disclose usage data. While industry representatives stress their focus on sustainable solutions such as dry cooling, local opposition is growing from Potters Bar residents resisting a £3.8bn AI facility on greenbelt land, to Anglian Water objecting to a 435-acre development in North Lincolnshire.

Thames Water is expected to serve 28 of the planned centres, including 14 more in Slough, already home to Europe’s largest cluster of such facilities. The company has been in talks with the government about managing water demand, while Water UK says it is eager to support growth but needs faster planning approvals.

The government says data centres are “essential” and has set up an AI Energy Council to ensure supply meets demand, alongside £104bn of investment in water infrastructure, including 10 new reservoirs in Lincolnshire, the West Midlands, and south-east England.

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