UK data centre demand is forecast to grow more slowly than in most European markets

Consultancy Kearney describes the UK as one of Europe’s slowest-growing data centre markets, despite continued demand. It forecasts annual UK demand growth of 17.6% through 2030, ahead of only Germany at 16.2%. Ireland’s forecast is 36% a year.

Kearney attributes the UK’s slower growth not to weak demand but to difficulty accommodating new infrastructure efficiently and affordably. Energy availability is a constraint across Europe, with data centre consumption forecast to reach 236 TWh by 2035, up from 96 TWh in 2024.

Land costs are another factor. Typical sites in the UK and other Western European markets cost about €2.25 million per megawatt, while Nordic markets average as low as €600,000 per megawatt. Kearney forecasts annual demand growth through 2030 of 37.6% in Finland and 36.8% in Norway.

“What has changed is that power and land are scarce enough that the next wave of capacity must match the workloads that genuinely need to be close to users, customers, and national jurisdictions,” European Data Center Lead Christoph Neunkirchen said. “Everything else will go where it is easier to build.”

The UK government says at least 6GW of AI data centre capacity will be needed by 2030. Kearney says lower electricity prices, cheaper land and faster grid connections are needed to support expansion.