On January 13, 2025, the UK Government unveiled its AI Opportunities Action Plan, a landmark initiative featuring a 50-point strategy aimed at harnessing artificial intelligence (AI) to drive efficiency and economic growth across the UK. Prime Minister Sir Keir Starmer described the plan as a “transformative approach that will not only revolutionise public services but also put more money in people’s pockets”.
As the UK accelerates towards an AI-driven future, the demand for data centre capacity is set to grow at an unprecedented pace. AI is now emerging as the next major digital infrastructure boom, following the rapid expansion of fibre broadband deployment. With infrastructure providers and investors witnessing a recalibration in the fibre market, attention is now shifting to data centres as the next key area of growth and investment.
This article is the first in a special three-part series, exploring the profound impact of AI on data centres. We explore the rising demand for data centre capacity and its implications for operators and investors. In future articles in this series we will examine the policy considerations for local and national authorities, and address the cybersecurity challenges posed by the expansion of AI infrastructure.