The economic pros and cons of building more and more data centres in the UK
About 100 new data centres, the large anonymous-looking buildings containing the complex computer systems which power the online world, are to be built in the UK. Vital for all of your digital needs – from Netflix and banking, to AI and social media – they are the heart of the modern digital economy.
They are also very expensive to build and operate, using up enormous amounts of energy and water (as a coolant). Ten years ago, a centre consuming 30 megawatts (MW) of power (enough to power 30,000 houses) was considered large. Today 200 MW is normal.
And the tech world is hungry for more capacity more quickly. It is expected that almost US$7 trillion (£5.2 trillion) will be spent on global data centre infrastructure by 2030.
The British government appears to see this kind of investment as a key part of the country’s economic future. As a result, the number of data centres in the UK looks likely to increase by one-fifth, from around 479 to around 580 within the next five years.
More than half of the new centres will be in the London area, including Google’s £740 million project in Hertfordshire. Others will be developed in South Wales, Greater Manchester and the north-east of England. All will require new infrastructure, including large amounts of cooling and power equipment.
But what are the economic benefits to being the home of so many data centres?
One clear advantage is for other tech........
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