TES has been acquired by Legrand, in a deal that gives the Northern Irish engineering firm access to one of the biggest names in electrical and digital building infrastructure.

The acquisition follows a period of rapid growth for TES, which has built its presence in the European data centre market as well as the UK and Irish utility sectors. The company said it had grown revenue to £72 million and expanded its workforce to around 300 employees.

It’s estimated that around 50% of TES’ revenue currently comes from the data centre sector, with the firm hoping to grow even further to capitalise on the rapid growth that is occurring in the industry in response to the rise of AI. 

Headquartered in Cookstown, County Tyrone, TES has recently expanded its manufacturing footprint with the opening of a 300,000sqft campus in County Derry. That additional capacity should be able to pump out more low-voltage power distribution equipment, ensuring that the company can keep up with demand. 

Earlier this year, Legrand pointed to the data centre market as a key driver of growth. While the firm has long been established in both the residential and commercial power market, it has been eager to compete with players such as Schneider Electric and ABB in the data centre sector. 

So far, its strategy has been paying off. Legrand reported that data centres accounted for 26% of its 2025 revenues, with it noting that the sector has the potential of accounting for 40% of its revenue in the future. This acquisition of TES should help it move towards that goal. 

As part of the deal, TES said it would continue to operate from its existing facilities in Cookstown and Derry following the acquisition, maintaining its focus on local job creation and its specialist divisions serving both the data centre and water utility markets.

Brian Taylor, CEO of TES, noted, “Joining Legrand is a landmark moment for TES. Over the past number of years, we have scaled our operations at an incredible pace, and this acquisition is a testament to the hard work and expertise of our entire team. Legrand’s global reach and market-leading position in the electrical sector provide the perfect platform for TES to further expand our international presence. We are excited to bring our bespoke engineering solutions to a wider audience while remaining deeply committed to our roots in Northern Ireland.”

Noel McCracken, Managing Director of TES, added, “Our mission has always been to provide innovative, high-quality engineering for critical infrastructure. With the support of Legrand, we can accelerate our investment in state-of-the-art manufacturing and continue to lead the way in both the water and power critical infrastructure markets.”

There are a lot of problems that the data centre industry in the UK has to contend with, whether it’s cooling, planning, power, or more recently public image. But if we break down all those elements, there may be a bigger issue at play – impatience. 

The industry is moving fast to capitalise on the hot new commodity of the moment – AI. Everywhere you look there’s a new AI feature being added to popular apps, or new AI companies launching promising to make people’s everyday lives easier. It’s easy to see why there’s this new wave of AI-in-everything, because that’s where the money is. 

Earlier this year, Gartner estimated that AI spending would top $2.5 trillion in 2026, and with that amount of money floating around – it’s bound to attract a whole swathe of people looking to get their payday. It’s also why you’re seeing more data centre developments than ever before, with new facilities being proposed on what feels like a daily basis. After all, how else are we going to enable AI if we don’t invest heavily in the infrastructure running it? 

That rush to deliver the promise of AI before the money runs out, is one of the reasons the industry is in the spotlight. After all, if you’re proposing to build 140 data centres, which is the number cited by Ofgem as currently in the connections queue, people will start to have questions. And those questions are almost certainly going to focus on power, because we all know AI is power hungry, and we also all know we’re currently living through an energy crisis. 

The queue is being mistaken for real demand

The problem is the debate about the industry’s power usage is being heavily distorted. That’s according to John Booth, DCA Advisory Board Member and Managing Director of Carbon3IT Ltd, who insists that we stop treating speculative projects in the grid connections queue as if they were firm future demand – and maybe, just maybe, take a deep breath and actually plan what we need. 

The distortion comes from the way headline figures are being repeated without enough scrutiny over what they actually represent. This is one of the issues I had with Carbon Brief’s headline, which read as a little on the sensationalist side, but it’s also something Booth has noted with the media’s representation of the industry’s power problem. After all, a project in the connections queue is not the same thing as a live facility, a committed build, or even a scheme with a guaranteed occupier. Yet too often, those distinctions are flattened out in public debate, creating the impression that every project is real, imminent, and destined to become a major new source of demand on the grid.

Booth’s argument is that this is where the conversation starts to go wrong. “The UK data centre operators have a very good handle on data centre construction projects and demands from their hyperscale and global clients, and they are progressing at pace to deliver their requirements,” he says. In other words, the established players aren’t rushing, they’re scaling appropriately to meet demand, but with money to be made in the market, new entrants are coming in who may not have as firm of a grip on realistic demand. The problem is that the wider pipeline is now being viewed as though it all carries the same weight and certainty.

That, according to Booth, is simply not true. “The majority of the ‘new’ projects announced over the past 2 years are property plays, i.e. identify a suitable location, obtain planning and power, and then flip to either an end client or an existing operator or hyperscaler.” 

Now, there’s nothing particularly shocking about that as a commercial strategy. Property speculation exists in every hot market. In fact, I grew up well aware of the property boom happening in Spain in the early 2000s, as investors flocked to build new luxury apartments and homes, hoping to make significant returns. Like those investors found out in the 2008 financial crisis, however, while AI is hot right now, there’s no such thing as a guaranteed return on investment – and that’s why there’s a serious problem when speculative activity gets folded into a wider story about what the country needs to power and build.

Risky speculation shouldn’t shape the narrative

Booth is blunt about the risks. “This is a very risky strategy, as power connections are stretching out to 2037 and new planning rules may require substantial re-design for future AI designs. We also have to believe the AI companies that there will be an actual requirement for this amount of computing power in the future, this is by no means a given.” 

Now, there are many people betting against AI. You just have to take to social media, or even the media in general to see people openly talking about the ‘AI bubble’ and if, or even when, it’s going to pop. While Booth is by no means anti-AI, he does raise an important point. 

The current AI boom has created a rush for position, and in a rush for position plenty of people will try to secure land, power and optionality long before they have secured certainty. And doesn’t that speak to why the debate currently feels so overheated? 

There is a tendency to look at a huge queue number, merge it mentally with the excitement around AI, and conclude that the UK is on the brink of an unavoidable power crunch driven entirely by data centres. But that is a lazy reading of a much more complicated picture. Some demand is real. Some demand is strategic. Some demand is speculative. Some projects will progress. Some will stall. Some will be sold. Some will be redesigned. Some will never make it past the stage of being a good idea on paper backed by the hope that someone richer arrives later.

It’s time to take a deep breah

That’s why for Booth, the answer is not to dismiss the issue, but to slow down and get more serious about what is actually needed – especially when it comes to planning something as complex as the energy grid. “The key point is to remove the speculative projects from the connections queue, take a breath, evaluate exactly what is needed from AI data centres, and build accordingly with a spatial strategy in mind.” 

That last point is especially important. If the UK is serious about AI Growth Zones, serious about supporting strategic digital infrastructure, and serious about avoiding the mistakes of fragmented development, then this cannot just be a race to connect everything, everywhere, all at once. It has to be a question of what should be built, where it should go, and what kind of power system and planning framework is needed to support it.

That in turn brings us back to patience. Not inertia, not delay for delay’s sake, but patience in the sense of discipline. The industry has money chasing AI, developers chasing sites, policymakers chasing growth, and the media chasing dramatic numbers. Under those conditions, it becomes very easy for everyone to talk themselves into a future that looks more settled than it really is. And once that happens, policy starts being shaped not by what is likely, but by what is loudest.

Booth argues that this is already happening. “There appears to be a lot of confusion within DSIT, Ofgem, The AI Energy Council and in the media with regards to current and future data centre energy capacity requirements,” he says. He is equally clear on the consequences of that confusion: “The media speculation surrounding data centre energy use and using flawed information does no one any good and we should wait for a concise plan to be developed by all the stakeholders, which is exactly what is happening right now.”

That is probably the most useful intervention here. The point is not that data centres do not need power, or that AI is not going to reshape infrastructure demand. It is that a speculative queue should not be mistaken for a national blueprint. If the UK wants to have a serious conversation about digital infrastructure, energy security and economic growth, it needs to start by separating what is real from what is aspirational, what is strategic from what is opportunistic, and what is genuinely urgent from what is simply being pushed forward by market impatience.

Because impatience is what sits underneath all of this. The impatience to capture the AI boom. The impatience to secure land and grid access before someone else does. The impatience to turn every large number into a headline. The impatience to build a narrative before a proper plan exists.

And that may be the biggest problem of all.

Equinix has begun construction on a new data centre in Dublin, with the company planning to invest $78 million in the facility.

The new site, known as DB7x, will be built in Blanchardstown, close to two of Equinix’s existing Dublin data centres. It’s expected to offer retail IBX availability from early 2028.

Equinix already has a significant presence in Dublin, with six facilities currently operating in and around the city. What’s notable about all those data centres is that Equinix claims they’re all covered by 100% renewable energy, although its latest facility goes a step further. That’s because despite the furore around the impact new data centre developments have on the grid, DB7x is expected to not place any additional strain on the local energy grid. 

It’s important to note that Equinix’s DB7x data centre will still be connected to the grid, it’s just being constructed on an existing site and using the power that had already been allocated to that site. That’s not quite as significant as another data centre in Dublin, Ireland, which recently claimed to have Europe’s first microgrid, but Equinix has promised that the facility will be set up to be ‘100% flexible’, so that it can support the grid. 

Peter Lantry, Managing Director, Equinix, Ireland, noted, “This is an exciting development for Equinix’s operations in Ireland, as we celebrate 10 years of being in Ireland, investing in its infrastructure and economy. This announcement strongly supports the Government’s recently published Digital and AI Strategy, which outlines a path for keeping Ireland at the forefront of global digital innovation. It also reaffirms our commitment to Ireland and its importance to businesses worldwide.

“This is positive news for the Irish economy and we would like to thank the IDA Ireland for their continued support and collaboration to enable our sustainable growth in Ireland . By expanding colocation capacity in Dublin, we will enable domestic and international enterprises to scale, innovate, and connect across Equinix’s global digital infrastructure platform with ease.”

Anne-Marie Tierney Le Roux, Head of Technology, IDA Ireland, added, “Today’s announcement is a significant boost to Ireland’s digital infrastructure. Equinix’s continued investment demonstrates strong confidence in Ireland as a location for high-performance, sustainable data centre operations. This new facility will enhance the country’s connectivity, support the growth of AI and cloud services and further strengthen Ireland’s position as a leading hub for digital innovation and international investment.”

Nscale has become the latest company to face intense scrutiny over a proposed AI data centre in Essex, in the latest sign of the sector’s growing image problem.

The company plans to build a major AI data centre in Loughton, Essex, and had previously hoped to complete the project by the end of 2026. That timeline was always ambitious, given the skills shortage affecting the UK construction industry and the fact that the site is still being used as a scaffolding yard. But what could actually hold the project back is the industry’s old nemesis – planning. 

Although the data centre received outline approval in 2024, renewed public concern about the impact of such developments has reignited debate around the site. Planning officers at Loughton Town Council have now called for a fresh planning application to be submitted because of changes proposed by Nscale.

Loughton Town Council won’t make the final decision on the project, as that responsibility lies with Epping Forest District Council. However, the objections raised by Loughton’s officers focus on several key concerns.

Unsurprisingly, one of the main issues is power. Reflecting on the wider public anxiety about AI data centres, the town council’s planning officers said they were concerned about the strain the project could place on the local electricity grid. They have called on Nscale to provide further evidence on the development’s likely impact.

In a further objection to the scheme, the officers have also hit back at proposed changes by Nscale – which they say is 50% higher than originally proposed and includes 50% more internal capacity. The objection hinges on power again, however, with it noting that the “proposal would require more cooling and increased energy to facilitate this application.”

As part of their objection, it has asked Nscale to submit a completely new planning application. That could have a major impact on the company’s timeline. Nscale has already pushed back the expected completion date to early 2027, citing technology upgrades rather than the latest planning issues.

An industry under fire

AI is being heralded by the UK Government as an opportunity to boost economic growth, and Nscale has been one of the big success stories. The firm recently completed a funding round which valued it at $14.6 billion, and has also attracted high-profile board members including Nick Clegg and Sheryl Sandberg.

Despite Nscale’s growth and strong government backing for the sector, the wider data centre industry is facing significant headwinds. Opposition is growing across the country over the pressure data centres place on the power grid, at a time when electricity prices are already high and there are fears they could rise further as a result of Trump’s war in Iran.

While the industry is trying to push back against the idea that data centres are inherently harmful, it is also facing increasing resistance from local authorities. Edinburgh Council recently announced plans for a moratorium on new data centre developments in the city, and Nscale is now encountering fresh opposition from Loughton Town Council.

Nscale, however, doesn’t appear overly concerned by the latest backlash. In a statement to The Telegraph, a company spokesperson noted, “Site investigation and permit work is under way on the Loughton site, and we expect construction work to begin in the second quarter of 2026.

“While the schedule was recently updated to accommodate the installation of the latest Vera Rubin 200 technology, we expect the site to be operational in the second quarter of 2027.”

The UK wants to be an AI powerhouse, with Chancellor Rachel Reeves even pledging that it will have the fastest AI adoption out of any G7 country. But if we want to actually have ambition meet reality, in other words, have more AI adoption, we need more compute. And if we want more compute, we need more data centres. And if we want more data centres, we need more land, more cooling and, above all, a lot more power. 

That is why Carbon Brief’s analysis this week hit such a nerve. It focused on a point that should already have raised eyebrows in Whitehall – the Government’s own numbers on data centre emissions looked far too low. And on that narrow but important point, Carbon Brief is right. 

The original DSIT Compute Evidence Annex said UK AI compute demand could reach 11.2GW by 2035 while associated emissions would still come in at just 0.025 to 0.142 MtCO2. That was laughably inaccurate, so much so the Government has already quietly updated the forecast. Not with a more accurate forecast, but with a note stating that it was intended to inform policy development rather than represent a final cross-government view, and that it’s now working on a more accurate assessment.

The Government’s numbers never really added up

You don’t need to be anti-data centre to see the problem. The basic logic is obvious enough. Huge amounts of AI compute require huge amounts of electricity, and electricity is only as clean as the system supplying it. The Government is right to talk about AI Growth Zones and faster infrastructure delivery, but it clearly got ahead of itself when it implied the emissions side of the equation would be negligible. If Britain is serious about scaling compute, then the power and carbon implications have to be taken seriously too.

It is not hard to see why the modelling ended up looking so convenient. The Government has staked a lot on AI as a driver of productivity and growth. It’s also made bold claims when it comes to its commitment to driving down carbon emissions and ensuring a greener grid. It is possible that officials simply assumed grid decarbonisation would move fast enough to absorb the coming wave of data centre demand. Maybe it still will. But that’s an assumption that still has to be proved, not wished into existence, and if we’re going to do forecasts – they should probably be based on probability. 

Ofgem’s own figures show just how big of a challenge it would be to get anywhere close to the UK Government’s previous forecasts. The regulator says there are around 140 data centres in the queue representing roughly 50GW of demand, including 71 projects amounting to around 20GW that have already reached financial commitment with final investment decision. Of course, not all of those data centres will come to fruition, but there are new projects proposed on a near daily basis – so the important thing to remember is that we’re getting a large new fleet of data centres regardless. 

Carbon Brief is right – but not about everything

I don’t want to get bogged down on Carbon Brief’s analysis being right or wrong, because it’s useful regardless, even if not flawless. That’s because it’s right to point out that the Government’s numbers looked too rosy, but it’s probably being a bit hyperbolic when it suggests that Britain is heading for a dirty, gas-fuelled data centre boom. In fact, just like the Government’s forecast, its ‘hundreds of times higher’ headline is based on a scenario, not a forecast. More specifically, it relies on cases where a meaningful share of future data centre electricity comes from gas. That is a perfectly fair stress test. It is not the same thing as saying this is the most likely outcome. Again, probability matters. 

There is also an important like-for-like problem in the comparison. Carbon Brief compares DSIT’s 11.2GW AI-only figure with Ofgem’s broader estimate that 71 mature data centre projects amount to around 20GW in the connections pipeline. Carbon Brief itself acknowledges that these figures are ‘not directly comparable’, because the Ofgem number is not specifically AI-only. That caveat matters. If the question is whether the Government’s modelling looked too low, the answer is yes. If the question is whether the sector is therefore heading for a fossil-fuelled free-for-all, the evidence is far less clear.

There is another point worth making here too. Backup generators are a real environmental issue, but they are not the same thing as routine power supply. Parliament’s latest POSTnote notes that generators are typically emergency systems, used infrequently and tested monthly, with regulatory limits on non-emergency run hours for larger installations. So it is important not to collapse every discussion of backup fuel into a claim that data centres are routinely running on-site fossil generation as their main source of electricity. That is not how most of the sector operates.

This is really a grid story

That is why the real story here is not whether data centres are ‘good’ or ‘bad’. It is whether Britain can build enough clean power, network capacity and system flexibility in the right places, quickly enough, to support the next wave of digital infrastructure. Before you argue that I’m simply defending data centres due to the fact that I write for a data centre publication, I can assure you I’m not. The industry can only get better if it’s held to account, but that doesn’t mean we can just keep adding fuel to the fire that simply states data centres are automatically bad. 

The public debate still swings too easily between two lazy positions. One says data centres are much cleaner than other forms of heavy industry and therefore should be given a pass. The other says they are climate villains in waiting. Neither is accurate. 

As Arcadis’ David Field argued recently, it is time to separate fact from fiction on data centre energy demand, because the sector only really makes sense when viewed in its wider system context. Data centres are energy-intensive, yes, but the real question is how grid capacity, phasing, cooling design and long-term energy planning evolve around them, not whether a single headline number can do all the work.

In fact, data centres will only be as low-carbon as the energy system, planning regime and technology choices around them allow them to be. That is why AI Growth Zones matter. The Government’s own response to the AI Opportunities Action Plan says these zones are supposed to offer enhanced access to power and support for planning approvals, while taking energy requirements into account with the National Energy System Operator. The AI Energy Council was also set up specifically to look at how AI and clean-energy goals can be delivered together.

The industry is already moving

And this is where the industry side of the story deserves more airtime than it usually gets. It’s not like the UK data centre sector is sitting still waiting to be told it has an emissions problem. It’s already well aware and is moving quickly on procurement, energy efficiency and backup power. 

Equinix, one of the biggest players in the space globally, says its UK data centres have 100% renewable energy coverage on a market basis, that all new UK sites since 2021 no longer use natural gas for heating, and that its Manchester 5 facility has used HVO for backup generators since 2022. It is also trialling lower-GWP refrigerants and says it is maintaining a focus on further PPAs and on-site low-carbon energy options.

Equinix is not alone. Kao Data says it procures 100% renewable energy on a market basis, reports an average estate PUE of 1.53, says it pioneered HVO for backup power in the UK, and has switched its Renewable Energy Guarantees of Origin (REGO)-backed supply to Dogger Bank from April 2025. VIRTUS says it has used purely renewable energy since 2012. Those are not magic fixes, but they do show the sector is actively working the levers it can control.

This is also where it is worth being honest – after all, I promised to hold the industry to account. Procuring 100% renewable energy on a market basis is not the same thing as saying a facility is physically running on zero-carbon electricity every hour of the day. Critics are right about that. Equinix’s own UK reporting shows market-based Scope 2 emissions at zero, while location-based Scope 2 emissions remain material. Kao Data reports the same distinction, saying its market-based Scope 2 emissions remain at zero because of REGOs while location-based emissions remain significant and may rise as the business grows. So yes, the grid still matters enormously. That is why it’s not an argument against data centres. It is an argument for getting the wider energy system right.

A plan is starting to emerge

There are also signs that the industry is trying to go beyond certificates and easy fixes. Kao Data’s deal with Downing Renewable Developments to build a 40MW solar farm for its Harlow campus is a good example. The project is designed to supply the campus with solar-generated electricity via a private-wire arrangement under a long-term PPA. It is not a whole-sector solution on its own, but it does point to a pattern of larger operators taking things into their own hands by being more direct with their renewable energy procurement and reducing the pressure on the grid, rather than simply complaining about it. 

We’re also seeing similar agreements from other operators, with SMRs seen by some in the industry as an ability for the sector to decouple from its reliance on the grid, while also reducing carbon emissions. While we’re still some way from seeing the first SMR deployed in the UK, Holtec International, EDF UK and Tritax Management have agreed to develop an SMR in Cottam, Nottinghamshire, for the express purpose of powering a data centre. 

There is also a broader framework taking shape. techUK says the current Climate Change Agreement for the sector requires a 14.5% energy-improvement target by 2030 against a 2022 baseline. The Climate Neutral Data Centre Pact, which many operators have signed up to, says electricity demand should be matched by 75% renewable or hourly carbon-free energy by the end of 2025 and 100% by the end of 2030. Again, these are not slogans. They are formal benchmarks against which the sector can be judged.

And if policymakers want examples from abroad, Ireland is already moving in a more explicit direction. Its regulator has decided that new data centres connecting to the electricity network must provide generation and/or storage capacity, and must meet at least 80% of their annual demand with additional renewable electricity projects generated in the Republic of Ireland. Given the scale of the power problems in Ireland, it could serve as a testbed for how to deal with a growing need for AI data centres without breaking the grid. 

The real question 

So yes, the Government probably did underestimate data centre emissions. Carbon Brief was right to say so. But it is too simplistic to jump from that to the conclusion that the UK is heading for a reckless, fossil-fuelled data-centre boom. The more accurate picture is messier, but also more constructive.

The official numbers need fixing. The grid needs to move faster. Siting decisions need to get smarter. And the industry needs to keep proving that its decarbonisation plans are real, measurable and not just market-based spin. But the outline of a plan is already there: cleaner procurement, lower-PUE design, cleaner backup fuels, more direct renewable deals, tougher sector targets and a bigger push to build where the power system can actually support growth. 

The real failure now would not be a lack of ambition from the industry. It would be a failure from the Government to match that ambition with an energy strategy capable of making it credible. 

LFB Group’s dedicated data centre division has rebranded to Apx, in a move the company says reflects the “complexity, pace and performance expectations” now defining the European data centre market.

The rebrand comes as operators and developers grapple with rising compute intensity, with AI deployments pushing rack densities higher and putting greater scrutiny on cooling performance and delivery timelines. In that environment, Apx says closer collaboration earlier in the design and build cycle – including co-engineering and pre-commissioning – is becoming increasingly important.

The name should also feel familiar. Apx has already been used by LFB Group before – with it naming an entire cooling infrastructure product series after it. Now, however, that name is going to be expanded to the whole division.

Apx will feature the familiar dedicated team from LFB Group, which was previously part of Lennox, so the experience that the company has gathered over the last 20 years will continue to be there – just under a new name. 

Why has LFB Group rebranded its data centre division to Apx? 

Given its established position in the market – why the rebrand? Well, the company says that Apx is all about market positioning. Not only has the company recently debuted three new products, but the company is keen to capitalise on the explosive growth that is occurring in the data centre market – especially in Europe. 

The company is positioning its strength on the pre-commissioning and early validation work, with capabilities it describes as spanning precision manufacturing, automated testing and climatic validation.

Matt Evans, CEO at Apx Data Centre Solutions, argued that the ability to validate performance earlier has become a differentiator as large projects are announced at pace. He noted, “The industry’s dams have well and truly burst, with billion dollar projects and developments being announced almost every week. Keeping on top of this demand though, has never been more important.

“Today, collaboration is everything. Operators are searching for partners who can offer them both flexibility and agility, enabling them to build for the future while reacting quickly to what’s happening right now. That’s where co-engineering becomes critical; by working with designers, contractors and operators from day one, we can shape decisions together, anticipate challenges and engineer solutions before they become problems.”

Evans added that front-loading engineering work is intended to reduce uncertainty once equipment reaches site. He continued, “While no one can predict what’s around the corner, one thing is clear: performance has to be proven earlier. It’s been one of our grounding principles since the start; the idea that pre-commissioning must be core to every product’s DNA. By front-loading engineering, validating performance up-front and removing uncertainty before components reach sites, we give operators the head space, and time, to meet the demand.

“The direction of travel is clear: scale, capacity and density. And I couldn’t be more excited about where we’ve taken this business. The new Apx name marks our next chapter, and it’s one we’re genuinely proud to be part of.”

While it has a new name, Apx will continue to sit within the wider LFB Group, which also includes HVAC specialist Redge and refrigeration business Friga-Bohn. The group says this structure provides industrial-scale manufacturing support and engineering expertise across refrigeration and mechanical disciplines.

Alongside the branding change, Apx is also expanding headcount. The company said it will recruit across project management, operations, controls, commissioning and sales support roles in France, Germany and the Netherlands. By 2027, its dedicated data centre team is expected to reach around 50 employees.

Lanarkshire has been named the UK’s latest AI Growth Zone, with the UK Government backing a major expansion around DataVita’s data centre site in the area. 

This is the first AI Growth Zone located in Scotland, which has long been positioned as an ideal area to host one – given the abundance of renewable power that is available in the region. The Scottish Government has also been keen to promote the area in hopes of developing it into a leading zero-carbon, cost-competitive green data centre hub. 

The Lanarkshire AI Growth Zone, which is the fifth AIGZ to be announced, is set to be based around DataVita’s campus, with the Scottish data centre firm delivering the site in partnership with AI cloud provider CoreWeave. That’s slightly different from other sites, which have often been positioned around multiple data centre operators, such as the North East Growth Zone, which is being centred around expansions to existing campuses from Cobalt Park Data Centres and the QTS Cambois. 

Despite being centred around the one expanded campus, the UK Government still has big hopes for the site. In fact, it’s hoped that the site will bring more than 3,000 jobs to the area over the coming years, including 50 apprenticeships. Around 800 roles are expected to be higher-paid AI and digital infrastructure jobs, spanning everything from research and software to permanent staff running and maintaining data centres, with the remainder tied to construction and site development.

Alongside job creation, ministers are pointing to £8.2 billion of private investment, plus a community fund worth up to £543 million over the next 15 years, which the Government says will be raised as data centre capacity comes online.

What’s being built as part of the Lanarkshire AI Growth Zone

The Lanarkshire AI Growth Zone may be centred around DataVita and CoreWeave’s partnership, but that doesn’t mean it’s just a single facility. To the contrary, the site is expected to feature 100MW of AI-ready data centre capacity, over 1GW of renewable energy infrastructure connected via private wire, and ‘Innovation Parks’ intended to attract adjacent industries that want proximity to large-scale compute.

That extra power will be key to the deployment of this latest AI Growth Zone, with it seen as a key tenet of gaining the designation, but it should also go some way towards helping reduce public opposition. Another data centre located to the south of Glasgow in Hulford has seen intense local opposition due to its enormous power demands, with residents outraged that the site wouldn’t even need to calculate the environmental impact on the local area. 

DataVita and CoreWeave will be keen to avoid the same backlash – which is why the companies are leaning heavily on a whole host of sustainability claims for its Lanarkshire AI Growth Zone. As well as using renewable energy to help power the site, the two firms also plan to make use of waste heat. 

The current plan is that excess heat from cooling systems could, in time, be redirected to support the nearby University Hospital Monklands, described as Scotland’s first fully digital and net zero hospital – though that element is presented as something to be explored once the site is fully up and running, rather than a guaranteed near-term deliverable.

That would be a huge win for advocates of heat networks, with a recent report suggesting that waste heat from UK data centres could heat 3.5m+ homes – it could also help the site win favour with local residents who are impacted by the plans. 

It’s not the only part of the plan that has been developed in a bid to win over residents. In fact, a community fund – worth up to £543 million over 15 years – will also be set up to support local programmes ranging from skills and training packages through to after-school coding clubs and support for local charities and foodbanks. 

DataVita’s parent company, HFD Group, is also expected to contribute £1 million per year to local charities and community groups, on top of the Growth Zone community funding mechanism.

Industry reaction

Commenting on plans for the first AI Growth Zone in Scotland, the UK’s Technology Secretary Liz Kendall noted, “Today’s announcement is about creating good jobs, backing innovation and making sure the benefits AI will bring can be felt across the community – that’s how the UK government is delivering real change for the people of Scotland.

“From thousands of new jobs and billions in investment through to support for local people and their families, AI Growth Zones are bringing generation-defining opportunities to all corners of the country.”

Danny Quinn, Managing Director of DataVita, added, “Scotland has everything AI needs – the talent, the green energy, and now the infrastructure. But this goes beyond the physical build. We’re creating innovation parks, new energy infrastructure, and attracting inward investment from some of the world’s leading technology companies. 

“This is a real opportunity for North Lanarkshire, and we want to make sure local people share in it. The £543 million community fund means the benefits stay here – good jobs, new skills, and investment that actually reaches the people who live and work in this area.”

Schneider Electric’s Matthew Baynes, VP, Secure Power and Data Centres, Schneider Electric, UK & Ireland, concluded, “In the twelve months since the introduction of the AI Opportunities Action Plan, the UK has seen much progress towards its AI ambitions.

“The new AI Growth Zone (AIGZ) announced today in Lanarkshire demonstrates just how far the country has come in its plans to build a sovereign AI nation, with Scotland becoming a critical new infrastructure hub and joining those in Wales, Oxfordshire, and the Northeast of England.

“Furthermore, the country has now secured more than £31B in investment from some of the world’s largest, leading tech companies, demonstrating that the UK has the people, resources and ambition to make AI a centrepiece of a new and revitalised Industrial Strategy.

“While this can be considered a success in many respects, there is still much work to do. Access to renewable power remains one of the biggest hurdles facing many parts of the country, and as the UK’s energy technology partner for data centres and AI Infrastructure, we believe there is a clear opportunity to catalyse the both the AI and green transitions by turning data centres into the energy centres of the future – fast-tracking new developments with behind-the-meter power generation and microgrids.

“Furthermore, the AIGZ announced today could not be more timely. We believe Scotland, with its cool temperate climate and rich conditions to generate renewable energy, provides a key opportunity to create secure, scalable and sustainable infrastructure capable of galvanising the AI race. Now, the UK’s sustainability and AI ambitions must work together hand-in-glove, demonstrating that today’s technology can be a catalyst for a greener future, powered by AI.”

Waste heat from the UK’s latest crop of data centres could be used to heat at least 3.5 million homes by 2035, according to new research that argues the country risks letting a major low-carbon heat source go unused without investment in heat network infrastructure.

The analysis, produced by heat mapping organisation EnergiRaven in partnership with Danish energy and sustainability consultancy Viegand Maagøe, links projected growth in data centres to a significant rise in recoverable ‘waste’ heat. It estimates that data centres could provide enough heat for between 3.5 million and 6.3 million homes by 2035, depending on factors including the efficiency and design of future facilities.

The research lands as the UK grapples with two parallel challenges: the rapid expansion of energy-hungry digital infrastructure to support cloud computing and AI, and the long-running difficulty of decarbonising heat – still dominated by gas boilers across much of the housing stock.

EnergiRaven argues that many existing and planned data centres are located close to proposed new towns and to communities facing higher levels of fuel poverty, raising the prospect of linking local heat demand with a growing heat supply that would otherwise be rejected into the atmosphere.

“Our national grid will be powering these data centres – it’s madness to invest in the additional power these facilities will need, and waste so much of it as unused heat, driving up costs for taxpayers and bill payers,” commented Simon Kerr, Head of Heat Networks at EnergiRaven.

“Microsoft has said it wants its data centres to be ‘good neighbours’. Giving heat back to their communities should be an obvious first step.”

How Manchester could be an ideal pilot

The report points to Greater Manchester as one area where this alignment could be particularly strong. It notes plans for around 15,000 homes at the Victoria North development and a further 14,000-20,000 at Adlington, alongside clusters of fuel poverty.

At the same time, the analysis highlights a concentration of data centre infrastructure around the city region, including more than a dozen existing sites and four additional facilities planned. EnergiRaven argues that, in theory, this proximity could make it easier to connect heat sources and new developments – provided heat networks are planned early enough, and built at sufficient scale.

More broadly, the research suggests the same pattern appears across the UK: growth in data centres is expected to increase the amount of recoverable heat, but the ability to use it will depend on whether networks exist to move that heat into nearby homes and buildings.

How heat networks work

Capturing waste heat typically requires a heat network: insulated pipework that transports hot water from a heat source to buildings, where heat interface units (HIUs) can replace individual gas boilers. The report notes that waste heat recovery is widely used across parts of northern Europe, particularly in Nordic countries, where major sources of waste heat — including data centres, power stations and other industrial processes — are more routinely integrated into district heating systems.

In the UK, heat networks remain a comparatively small part of the heating mix, but policy has been moving to encourage growth. Some cities have already been designated as ‘Heat Network Zones’, where heat networks are assessed as the cheapest low-carbon option for decarbonising heat locally.

Regulatory changes are also on the horizon. Ofgem is due to take over regulation of heat networks in 2026, and new technical standards will be introduced through the Heat Network Technical Assurance Scheme (HNTAS), intended to improve consumer protections and investor confidence.

The Government’s recent Warm Homes Plan also includes a target to double the share of heat demand met by heat networks in England to 7% (27 TWh) by 2035, with a longer-term expectation that heat networks could supply around a fifth of all heat by 2050. It also pledges £195 million per year through the Green Heat Network Fund to support heat network development.

However, EnergiRaven argues that current policy settings still fall short of what would be needed to take full advantage of large-scale waste heat from data centres.

“Current policy in the UK is nudging us towards a patchwork of small networks that might connect heat from a single source to a single housing development. If we continue down this road, we will end up with cherry-picking and small, private monopolies – rather than national infrastructure that can take advantage of the full scale of waste heat sources around the country,” Kerr added.

“We know that investment in heat networks and thermal infrastructure consistently drives bills down over time and delivers reliable carbon savings, but these projects require long-term finance. Government-backed low-interest loans, pension fund investment, and institutions such as GB Energy all have a role to play in bridging this gap, as does proactivity from local governments, who can take vital first steps by joining forces to map out potential networks and start laying the groundwork with feasibility studies.”

A “heat highways” argument — and what it would change

A central recommendation in the analysis from EnergiRaven is the need for larger, strategic networks – which it describes as ‘Heat Highways’ – capable of transporting waste heat over longer distances and linking multiple sources and demand centres. The report suggests that smaller, isolated schemes may struggle to exploit the growing scale of data centre waste heat, particularly as facilities cluster in certain regions rather than being evenly spread across the UK.

Viegand Maagøe’s Peter Maagøe Petersen argues that building larger thermal networks could also provide benefits beyond household heating, including grid balancing and energy security.

“We should see waste heat as a national opportunity. In addition to heating homes, heat highways can also reduce strain on the electricity grid and act as a large thermal battery, allowing renewables to keep operating even when usage is low, and reducing reliance on imported fossil fuels. As this data shows, the UK has all the pieces it needs to start taking advantage of waste heat – it just needs to join them together,” he noted.

“With denser cities than its Nordic neighbours, and a wealth of waste heat on the horizon, the UK is a fantastic place for heat networks. It needs to start focusing on heat as much as it does electricity – not just for lower bills, but for future jobs and energy security.”

The underlying message from both organisations is blunt: data centre growth is already being planned and powered. The question is whether the UK will treat the heat those facilities inevitably produce as a resource – or continue to design energy infrastructure that ignores it.

A UK-based specialist in electrical switchgear and critical power systems is expanding into the United States, as the surge in data centre construction strains power infrastructure and exposes shortages in both equipment and labour.

Prism Power Group, headquartered in Watford, is looking to purchase a US business that already holds UL certification and is raising $40 million to fund the acquisition and further expansion in the UK.

The move comes as developers attempt to keep pace with rising demand driven by artificial intelligence, cloud computing and other digital services – and as utilities and supply chains struggle to deliver connections and key components quickly enough. In fact, it’s estimated that just 25GW of grid capacity will come online in the next three years, leaving the industry 19GW short of the power it needs to realise its expansion plans. 

That’s why Prism Power Group wants to expand into the US. It says it has built its reputation delivering mechanical and electrical infrastructure for modular data centre projects in the UK and across Europe since 2005, including work spanning high-voltage substations, back-up generation and low-voltage switchboards for tightly scheduled turnkey developments. It

Adhum Carter Wolde-Lule, Director at Prism Power Group, explained, “The scale and urgency is such that America’s data centre expansion has become an international endeavour, and we’re again able to punch well above our weight in providing the niche expertise that’s missing and will augment strained local supply chains – on the ground, straight away.

“Major power manufacturers in the United States are ramping up production, while global giants have announced new stateside factories for transformers and switchgear components, aiming to cut lead times and ease the backlog – but those investments will take years to bear fruit and that is time the US data centre market simply doesn’t have.”

Keith Hall, CEO at Prism Power Group, added, “For overseas engineering companies like us with uniquely skilled contractors and technicians, plus a proven track-record in modular power systems that can be built off-site, the time is now and represents an exceptional opening into the world’s fastest-growing infrastructure market. Equally, for the US sector, the willingness to look globally for critical power systems excellence will prove vital in keeping ambitious build-outs on schedule and preventing the data centre explosion from hitting a capacity wall.”

Prism’s announcement taps into a wider trend: US developers increasingly look overseas for expertise and equipment, as domestic manufacturing and skills pipelines struggle to scale at the same pace as data centre growth.

According to figures, tech giants including Amazon, Google and Microsoft already operate more than 520 data centres across the US, with more than 400 additional facilities under construction or development. Industry analysts estimate that more than 100 GW of new data centre capacity could come online between 2024 and 2035 – a level of growth that is now exposing bottlenecks in both grid infrastructure and construction resources.

Those constraints are already being felt in the biggest markets.

In Northern Virginia, the largest data centre region in the country, project backlogs have reportedly contributed to multi-year delays for new power connections as utilities reinforce high-voltage infrastructure. Similar issues are emerging in Silicon Valley, where two large AI-focused facilities in Santa Clara are standing empty while the city-owned utility upgrades its grid and sequences power delivery as new substations come online, according to Prism. 

While the examples are region-specific, the underlying challenge is national: more capacity is being planned and built than the power system, supply chain and labour market can comfortably support at current speed.

However, it isn’t only hardware creating pressure. Prism says specialist electricians, installers and maintenance engineers are in such demand that contractors report backlogs of 12 months to staff new projects.

That matters because data centres need more than construction labour. Once operational, facilities require round-the-clock expertise to manage power distribution, cooling systems and emergency back-up power – and Prism warns that the talent pipeline is lagging behind the industry’s rapid growth. The concern, as analysts have repeatedly flagged in recent years, is that workforce constraints could affect both build schedules and long-term reliability.

Against that backdrop, Prism’s plan appears designed to remove one of the major market barriers for overseas entrants: US certification requirements. By acquiring a UL-certified business, rather than attempting to build a compliant operation from scratch, the company is aiming for a faster route into live projects, while also expanding its UK base as part of the same capital raise.

Prism has not disclosed which US market it will prioritise, or the size and specialism of the acquisition target, but the rationale is clear: the US data centre boom is forcing an international supply response, and companies able to deliver power infrastructure at pace are betting they can secure a role in that buildout.

Microsoft chief executive Satya Nadella has warned that the AI boom risks turning into a speculative bubble unless adoption spreads far beyond big tech firms and wealthier developed markets.

Speaking at the World Economic Forum annual meeting in Davos on Tuesday, Nadella argued that the long-term success of the technology will hinge on whether it is taken up across a broad range of industries — and whether emerging markets can access the same productivity gains being claimed in the US and Europe.

“For this not to be a bubble by definition, it requires that the benefits of this are much more evenly spread,” said Nadella. He added that a “tell-tale sign” of a bubble would be if the upside remains concentrated among tech companies, rather than showing up in the performance of other sectors.

The warning lands as investment in AI infrastructure continues to accelerate, with governments, hyperscalers and enterprises pouring money into data centres, chips and new software tools — often on the promise that generative AI will unlock major gains in productivity. Nadella, however, suggested that the credibility of those claims will ultimately be tested outside the technology sector and outside the developed world.

For Nvidia, one of the big winners of the boom, chief executive Jensen Huang used his Davos appearance to argue the opposite case: that the industry needs even more investment, particularly to meet AI’s power demands, because benefits are already emerging across multiple sectors – a view that slightly contrasts with Nadella’s warning that the ‘proof’ must show up more widely.

That doesn’t mean Nadella is negative on AI. Quite the opposite: he maintained that he expects the technology to prove transformative, pointing to its potential role in scientific discovery and healthcare. “I’m much more confident that this is a technology that will… diffuse faster, and bend the productivity curve, and bring local surplus and economic growth all around the world,” he said.

Nadella’s comments were made during an on-stage conversation with BlackRock Chief Executive Larry Fink, who has been bullish on AI, with BlackRock involved in major investments in the space, including in the UK.

But public debate about whether AI is a “bubble” has continued to intensify, and recent commentary from influential figures has done little to quell those fears. Last year, Alphabet chief executive Sundar Pichai said the investment boom in AI had “elements of irrationality”, while the Bank of England has warned of a “sharp correction” in major tech firms should an AI bubble burst.

A key concern underpinning the debate is the uneven pace of adoption. While large multinationals and digitally mature economies have moved quickly to test copilots, automation tools and AI-enabled workflows, uptake is slower elsewhere – raising the possibility that productivity benefits could remain concentrated in richer markets, at least in the near term. Nadella’s message in Davos was that broad diffusion is not a nice-to-have: it is essential if AI is to underpin durable economic growth rather than a cycle of hype.

It is also why the question of who is expected to drive adoption has become a flashpoint. The attempt at Davos to frame AI’s success as something that ultimately depends on users and customers has not landed well with everyone.

On social media, some users rejected the implication that consumers bear responsibility for whether the technology delivers on its promise. One user on Reddit wrote, “That’s how you know that a product is good right? Not when it spreads organically, but when the CEOs have to keep sounding alarms and beg for more money, correct?”

The pushback comes at a moment when public frustration with generative AI outputs has been increasingly visible. Nadella drew criticism earlier this month after urging people to stop using the term “slop” to describe low-quality AI-generated content – a reaction that speaks to a wider trust problem that could itself slow the kind of broad-based adoption Nadella says is necessary to avoid an AI bubble.

Panduit has promoted Holly Garcia to Chief Commercial Officer, tasking her with leading the company’s global commercial strategy and customer-facing approach.

Garcia will report directly to Panduit President Marc Naese, with the appointment coming as the firm positions itself for growth across its electrical and network infrastructure markets.

“Holly has the vision and expertise to position our company for continued growth and success while deepening our customer relationships,” said Naese. 

“Holly’s leadership as Chief Commercial Officer will be instrumental in strengthening the customer experience and delivering the value our markets expect.”

Garcia most recently served as Vice President of Panduit’s Data Centre business unit, where she led growth and innovation initiatives and oversaw business strategy and new product introductions aimed at strengthening the company’s position in the data centre market.

Panduit said Garcia brings more than 25 years of experience across sales, marketing and business unit leadership.

“I’m honoured to take on the role of Chief Commercial Officer and excited to lead our commercial strategy during this time of growth,” explained Garcia. 

“Our team’s commitment to innovation and customer success has positioned us as a trusted partner globally, and I look forward to driving even greater value for our customers and stakeholders.”

BSI has launched a new ‘Mark of Trust’ scheme designed to help data centre operators and their supply chains demonstrate that facilities and operations meet international standards for reliability, security and sustainability.

The scheme is positioned as a response to the rapid growth in global data centre capacity, which is being driven by AI and cloud computing, and the accompanying concerns around energy demand, water usage, supply chain resilience, regulatory compliance and the impact of new sites on local infrastructure and communities.

BSI says the Mark of Trust is based on international standards and is intended to provide a globally recognised way for operators to show alignment with best practice, particularly as emerging regulation and public scrutiny increases.

The standards and assurance body added that it has already certified BK Gulf LLC – an engineering, procurement and construction (EPC) contractor active in the UAE and wider Middle East market. BK Gulf received the mark in the ‘Availability and Protection’ module of the new scheme following a pilot phase.

David Mudd, BSI’s Global Head of Digital Trust Assurance, noted, “The promise of technology and in particular AI has never been greater, but it will not be realised without the necessary infrastructure sitting behind it. Tech companies face unprecedented operational, regulatory and reputational pressure as they try to meet the exponential growth and demand for data centers fuelled by the rise of AI. Organizations will now be able to meet these pressures head-on, while inspiring trust and confidence with clients, regulators and consumers that their facilities and operations meet global compliance and align with international best practice.”

A bid to reassure regulators and customers

The launch comes at a time when data centres are facing increasing pressure to evidence resilience and sustainability, with energy use and grid capacity frequently at the centre of planning debates. Operators in multiple markets are also contending with tighter expectations around cyber and physical security, alongside a growing focus on the provenance and robustness of critical supply chains.

BSI is positioning the Mark of Trust as a way for organisations to demonstrate compliance in a more consistent and recognisable way, rather than relying on fragmented or location-specific proof points.

The organisation also pointed to continued growth forecasts for the sector. It said the global data centre industry is expected to more than double from $242.72 billion to over $584 billion by 2032, with the number of hyperscale facilities forecast to roughly double every five years. In BSI’s view, that scale of expansion will only intensify scrutiny of how new facilities are designed, built and operated.

While the Mark of Trust has been framed around reliability, security and sustainability, BSI says the scheme is modular – allowing organisations to certify against specific focus areas, depending on what customers, regulators or local stakeholders are prioritising.

Andrew Butterfield, BSI’s Managing Director, Built Environment, added, “We’d like to congratulate BK Gulf LLC on certifying to the Availability and Protection module of the Mark of Trust, which demonstrates their leadership in industry best practice. We’re proud to be their trusted partner on this journey to driving innovation and excellence. BK Gulf LLC were among the first organisations to achieve the BIM Kitemark, and this latest certification further underscores their commitment to embracing international standards. BSI’s Mark of Trust will help organisations such as BK Gulf LLC, to build resilience, keep future-ready and secure an AI-future that works for all.”

What the Mark of Trust covers

BSI describes the Mark of Trust as an independent, globally recognised framework intended to validate technical, operational and compliance performance across data centre facilities and operations.

Two versions of the mark will be offered, one for facilities and another for services.

The framework is split into modules, with each one aimed at a specific challenge facing the sector. BSI says modules range from business continuity through to carbon usage and water management, enabling organisations to focus on the areas most relevant to their market and stakeholder expectations.

As priorities can vary significantly by region, particularly where grid constraints, water stress or planning environments differ, BSI says modules can be tackled in the order most appropriate for the organisation.

The body also says it will keep the scheme under review, with the number of modules and their requirements updated as the sector evolves.

Data centre planning applications hit a record high across England and Wales in 2025, as developers and investors raced to secure sites amid rising demand for AI and cloud compute.

That’s according to new analysis from City AM, which noted that more than 60 planning applications for new data centres were submitted in England and Wales during 2025. That represents a 63% increase compared with 2024.

It shouldn’t come as too much of a surprise that there has been a surge in data centre planning applications, especially as the industry splashes the cash as big tech fights over who will be number one in the AI race. Firms such as Google, Microsoft and OpenAI are all committing huge capex budgets to expanding their data centre portfolio, and the UK is seen as a key target for new data centres. 

What could be a surprise, however, is the fact that all the new applications cited by City AM were for new data centre developments and excluded extensions to existing sites, revisions to past applications, and wider mixed-use schemes that included a data centre component. That means the true volume of data centre-related proposals moving through the planning system is likely to be higher.

Dame Dawn Childs, Chief Executive of Pure Data Centres, told City AM, “With this AI bubble that everyone’s talking about…because of the increased valuations for powered land, everyone’s trying to get a piece of the pie, and that creates a bunch of fizziness.

“We’re seeing lots of people who are sending out on a daily basis: ‘we’ve got this significant plot of land with all of these megawatts of power in the middle of nowhere, it’ll be an AI gigafactory, buy it for a gazillion pounds’ – they’re absolutely trying to get increased valuations for scrappy industrial land.”

Childs said the strongest demand is being driven by AI-related applications from major hyperscalers, while adding that even without AI, the UK would likely have seen a notable rise in activity as cloud adoption accelerates across the wider economy.

Geographically, the South East continues to dominate. Around half of the applications were located in London and the South East – areas already seen as a European hotspot for data centre capacity because of connectivity, customer proximity, and established infrastructure.

That said, the analysis points to a broader spread of proposals beyond the traditional hubs. Seven applications were submitted in Wales during the year, along with another seven in the East Midlands, four in the North West and four in Yorkshire, suggesting developers are increasingly looking further afield as land and power constraints bite in the South East.

It’s not just the number of applications that is changing — it’s the type of sites being targeted. Developers appear to be getting more creative, with proposals to repurpose a wide range of existing brownfield assets into data centres. The examples cited in the analysis include an abandoned Mercure hotel site in Watford, the old Truman brewery earmarked for conversion in Hackney, a shuttered coal mine in Nottinghamshire, and a former landfill site in Chesterfield.

Given the demand for power many modern data centres now have, old power stations are also proving popular sites for hyperscalers. In fact, it was recently revealed that Amazon was prepping a brand-new data centre on the site of the former Didcot A data centre in Oxfordshire. Now it seems that project is just one of the many currently battling their way through the UK’s planning system.