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.