A £4bn data centre investment in the UK by one of the industry’s biggest companies has been confirmed today, Sky News can reveal.
The money is being put up by Equinix – one of the most significant players on the global stage when it comes to providing data centre space for other clients.
The 85-acre site in South Mimms, Hertfordshire, would have 250 megawatts of processing capacity and aim to be up and running by 2030.
This doubles the company’s processing power in Britain, and shows it is willing to invest in the UK despite concerns about energy costs and its environmental impact.
Technology Secretary Liz Kendall told Sky News the announcement was a “huge vote of confidence in Britain”.
Megawhat?
Megawatts are how the industry measures the power of a data centre.
Until recently, a 20MW or 30MW facility was considered huge, but the AI boom has seen these numbers explode.
To put today’s announcement into context, a government estimate at the end of last year reckoned the UK had a data centre capacity of around 1,566MW.
An increase of 250MW roughly doubles Equinix’s footprint in the UK, and £4bn is its biggest commitment in Europe.
Why are data centres important?
They can support jobs, redevelop post-industrial areas, and boost economic growth.
This has seen the government bend over backwards to make it easier for the divisive projects to be green lit, including “grey belt” designation for areas of green belt land earmarked for development.
The grey belt, according to the government, includes land near existing settlements, roads, and other existing infrastructure, and disused car parks and petrol stations.
Labour controlled Hertsmere council approved the project, with planning officers arguing the land was grey belt.
It’s located on oilseed rape fields wedged between the M25, A1(M), South Mimms service station and Potters Bar.
This type of data centre needs to be as close as possible to the office workers using its servers – miles equals milliseconds and this can mean millions of pounds in the fast-paced financial world.
Read more:
‘AI superpower’ dream at risk, industry warns
Govt still hoping for £45bn in savings from AI
As well as construction roles numbering in the hundreds, Equinix says the facility will help support thousands of jobs in London and the City.
James Tyler, the firm’s UK managing director, said: “We are excited about the underlying demand in the UK.
“The government are also very excited about the fact we are investing in the UK. Equinix has choice about where we invest, and we’re very excited about what the underlying environment looks like, the demand environment, the government support for this.”
Ms Kendall said it was a “really important investment here from a major company, and they want to help build the infrastructure for the future”.
She added that while a “lot of people are worried about what AI will mean to them”, the government is keen to support people with apprenticeships and “upskilling” into the sector.
Green credentials
One of the key complaints for those wanting to build these hugely power-demanding sites is getting the necessary connection to the National Grid – with the waiting list stretching as far as a decade in some instances.
However, this site already has a connection lined up due to the previous work – and Equinix wants to get spades in the ground before the end of 2026 or the start of 2027 for a 2030 launch.
Be the first to get Breaking News
Install the Sky News app for free
It is also committed to using 100% renewable energy by that point. The site will be air cooled and not place any extraneous demand on water past the usual – like on-site toilets.
Andrew Higgins, global head of master planning and sustainability, told Sky News: “We’ll be retaining all the existing high-value woodlands and streams, and we’ll be planting thousands more trees.
“We’ll convert a lot of this monoculture arable land into wildflower meadows, we’ll put in ponds, and over 50% of the plot will remain as green space – that will result in a biodiversity net gain exceeding 10%.”
Asked by Sky News how developers will be to their green commitments, Ms Kendall said: “We want to make sure we both tackle climate change and seize the potential advantages of AI.
“We want to make sure they draw on renewable energy sources. But AI can itself help tackle some of those big challenges around climate change.”
The government announced today that climate science and AI safety will be among the sectors receiving some of a £55bn boost for research and development.
It comes from a £86bn package for science and tech announced by the chancellor at the spending review in June.
