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      The UK is entering a pivotal moment in its digital evolution.

      As artificial intelligence accelerates globally, the strength of national digital infrastructure, particularly data centres is becoming a defining factor in long‑term competitiveness.

      Already the world’s third‑largest data centre market, the UK now faces a new phase that will demand resilience, sustainability and strategic investment at scale.


      Lars Meyer

      Partner, Deal Advisory Infrastructure

      KPMG in the UK


      Assad Noori

      Head of Digital Infrastructure Advisory

      KPMG in the UK


      Home Stretch for UK

      The Backbone of AI: Securing the UK’s Digital Future

      AI is now reshaping demand at speed, driving the need for high‑density, sustainable facilities and accelerating growth across regional hubs. The race is on to build a resilient backbone that keeps the UK at the forefront of the global AI economy. Explore the opportunities and the risks defining the next decade of UK digital infrastructure.


      A market shaped by global forces

      The surge in digitisation, cloud adoption and data‑driven business models continues to fuel worldwide data centre expansion. AI is now reshaping this trajectory: workloads from large language models and advanced analytics are set to overtake traditional cloud computing as the primary driver of new capacity. With global data centre spending projected to rise sharply, the UK is well positioned but must act decisively to stay ahead.


      Challenges and growth constraints

      Despite strong fundamentals, the sector faces mounting pressures.

      • Energy consumption

        is rising rapidly, intensifying scrutiny on environmental impact and grid capacity.

      • Planning and permitting constraints

        are adding friction, with local authorities tightening environmental and noise regulations.

      • Land scarcity

        in London and the Southeast is pushing operators toward new geographies.

      • Talent shortages

        pose a growing risk, with a significant portion of the workforce nearing retirement.

      • Inflation and rising build costs

        are driving up rental rates and sharpening the need for disciplined capital allocation.


      Securing the UK’s digital future

      To maintain its global leadership in AI and digital infrastructure, the UK must balance rapid expansion with sustainability, resilience and workforce development. Operators and investors that prioritise scalable, energy‑efficient, AI‑ready platforms and that align closely with government policy will be best positioned to capture long‑term value.

      As demand for high‑density capacity intensifies, the winners will be those who invest early, partner effectively with local authorities, and build infrastructure capable of supporting the next generation of AI innovation.


      Our technology insights

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      Our people

      Lars Meyer

      Partner, Deal Advisory Infrastructure

      KPMG in the UK

      Assad Noori

      Head of Digital Infrastructure Advisory

      KPMG in the UK



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