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.
AI and the UK Government’s Strategy as a Catalyst for Growth
The UK government's AI strategy aims to leverage AI to drive productivity, innovation, and public service improvements. The Government’s vision places AI at the heart of the economy—leveraging it to enhance public sector operations, from healthcare diagnostics to social work automation, and boosting private sector competitiveness in a global digital economy.
A recent article highlights tangible benefits already being realised due to AI in the public sector, such as Swindon Council’s 63% reduction in social care administrative workloads and the education sector’s generative AI pilot programs, which have cut administrative burdens by 40%, unlocking significant cost savings and productivity gains.
High Levels of Computational Power Driving Data Centre Demand
AI demands significantly higher levels of computational power, storage, and bandwidth than traditional digital workloads. This computing intensity arises from AI's reliance on:
Advanced Machine Learning Models – Training and running AI models (such as large language models) require high-density computing power in the form of processors (GPUs) and specialised chips, which consume substantial power and cooling resources.
Data Processing at Scale – AI systems absorb and analyse significant datasets, requiring low-latency, high-speed computing environments housed within dedicated facilities.
Always-On Requirements – Unlike traditional workloads, AI applications require continuous uptime for real-time inference and decision-making, increasing infrastructure resilience requirements.
As a result, data centre operators must rapidly scale their capacity, efficiency, and sustainability efforts to meet AI's growing demands.
The Next Infrastructure Investment Boom Shifts from Fibre to Datacentres
The fibre market, after experiencing a period of rapid growth driven by billions in private investment, is now entering a recalibration phase, with consolidation and cautious expansion. In contrast, the demand for AI data centres presents a new opportunity for infrastructure investors and data centre operators.
Key statistics based on our research highlight this shift:
Data centre floor space in the UK is set to increase between 3 million and 3.6 million square metres by 2030.
This expansion will require the construction of 454 to 554 new data centres, a fourfold increase from 2024, reflecting a significant opportunity for land owners, investors and data centre operators.
The market demand is expected to outstrip current supply, presenting a clear investment case for both existing players and new entrants.
Infrastructure providers and investors who previously focused on fibre deployment should now view data centres as the next logical step in digital infrastructure investment.
Figure 1 - UK Data Centre Floor Space Forecast. Source: Intelligens Consulting analysis based on data from McKinsey and Research and Markets, 2025.
AI Data Centre Growth Presents Significant Opportunities for Investors and Operators
The anticipated growth in AI-driven data centres presents significant opportunities for:
Data centre operators as the need for high-performance computing environments is driving demand for new and scalable facilities.
Investors particularly with AI’s growth forecast, data centre assets offers lucrative long-term investment potential.
Landowners as the surge in data centre demand presents a lucrative opportunity for them to capitalise on the growing need for strategically located sites.
Tech Providers and vendors specialising in server hardware, cooling systems, and connectivity solutions providers who will see increased demand.
A Revolution for Digital Infrastructure
AI is ushering in the next digital infrastructure revolution, following in the footsteps of fibre broadband deployment. The UK's ambitious AI plans, combined with private sector adoption, are set to drive unprecedented demand for data centres, creating a major opportunity for infrastructure investment.
Now is the time for data centre operators, investors, land owners and policymakers to position themselves at the forefront of this shift, ensuring that the UK remains competitive in the global AI race.
If you are a data centre provider, land owner, or investor looking to explore this exciting growth opportunity, get in touch with Intelligens Consulting to discuss your investment plans and how we can support your strategic goals.
This article is part of a three-part series exploring the future of AI-driven data centres. Next month, we will explore the policy implications of this rapid expansion, covering topics such as energy infrastructure, site allocation, and sustainable development. In the final article, we will address the cybersecurity challenges associated with AI infrastructure growth and the measures needed to protect sensitive data.
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