Data centres: From misunderstood infrastructure to economic enabler | Total Telecom

Contributed Article

by Iqbal Bedi, Managing Partner of Intelligens Consulting

The UK wants to lead in AI, cloud and digital services. Prime Minister Andy Burnham recently reinforced that ambition at the UN, committing to put AI at the heart of the UK’s 2027 G20 Presidency.

But delivering that ambition depends on physical infrastructure. AI, cloud and digital services all rely on the compute capacity, connectivity and data centres that underpin the digital economy.

At Connected Britain 2026, I chaired a panel with representatives from Deep Green, Ark Data Centres , Kao Data and Telehouse. The discussion highlighted an important tension: data centres are becoming more important to the economy just as public and political scrutiny of them is increasing.

This article shares some of the key points and takeaways from that panel discussion.

The first point is perhaps the simplest: almost everyone uses a data centre every day, usually without realising it.

Data centres underpin email, social media, banking transactions, access to NHS records, video and music streaming, and many cloud-based business applications.

Tom Powlay of Telehouse provided a useful analogy: “Data centres are like vehicles. A bicycle and a cargo truck are both vehicles, but they serve very different purposes. Hyperscale, AI, connectivity-led and edge data centres similarly have very different requirements for power, cooling, connectivity and location.”

And critically, AI is not yet the dominant driver of UK data-centre demand. The panel highlighted that much of today’s demand still comes from cloud computing and the everyday digital applications we already use. AI is an important growth driver, but it should not become shorthand for the entire sector.

Stop judging the building; understand what it enables

One of the strongest themes was that data centres respond to demand rather than create it.

Banking, healthcare, logistics, retail, communications and cloud services increasingly depend on this infrastructure. Judging a data centre simply by the number of people working inside it therefore misses its wider economic role.

Another panelist compared data centres to motorways: the value of a motorway is not the number of people working at a toll booth or service station; it is the economic activity travelling across it.

The takeaway was simple: judge data centres by what they enable, not just by the buildings themselves.

Myth or material concern?

Power, water, jobs and local impact dominate much of the current debate.

Some concerns are legitimate. Data centres can consume significant amounts of electricity, while major developments need to demonstrate clear local benefits.

But context matters.

The panel highlighted how UK cooling models can differ substantially from the water-intensive US examples frequently cited in media coverage. One example discussed by Mark Lee of Deep Green was a UK facility using closed-loop cooling and reusing waste heat through a district heating network.

There was also broad agreement that the industry itself needs to do more. Public concerns are real, even where some of the assumptions behind them are wrong.

The industry’s response therefore cannot simply be to rebut criticism. Greater transparency, stronger community engagement and clearer local benefits are needed.

Capital exists. Certainty is harder to find.

Investment appetite remains strong. One panelist cited a recent £1.7 billion investment as evidence that international interest in UK capacity remains significant.

The bigger constraints are high power costs, long grid-connection times, planning risks and wider uncertainty.

Developers compete globally for capital. Long grid-connection times, planning risk and inconsistent understanding between authorities all increase the risk attached to UK projects.

One idea raised by Mark Lee of Deep Green was for something akin to a “home buyer’s report” for data centres: a common framework covering power, water, efficiency, community impact and other key characteristics, helping planners and communities understand what is actually being proposed.

From AI ambition to infrastructure strategy

AI Growth Zones have helped focus attention on infrastructure, but the discussion questioned whether concentrating on a small number of very large sites adequately reflects the breadth of the UK market.

Existing clusters and city regions may offer a different route, combining brownfield land, power, connectivity, skills and supportive local leadership.

The policy question is therefore not simply whether Britain needs more data centres, but what types are needed, where they should be located and under what conditions they should be developed.

Five key takeaways for policymakers

1. Plan for data centres as economic infrastructure, not simply as another property use.

2. Differentiate between data centre types, because their power, water, connectivity and location needs vary significantly.

3. Give planners clearer guidance and evidence, so applications can be assessed consistently and with greater confidence.

4. Identify investable locations proactively, bringing together land, power, connectivity, planning and skills rather than waiting for proposals to arrive.

5. Quantify local and regional benefit properly, including supply chains, skills, business rates, innovation, digital services and the wider economic activity enabled by compute.

If Britain is serious about AI-led growth and the wider digital economy, data centres cannot be considered separately from energy, planning, connectivity, and regional economic development.

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How Intelligens can help

For local authorities, combined authorities and regions, the challenge is increasingly practical: where should data centre investment go, what kind of capacity is appropriate, and how can economic benefits be maximised while infrastructure and community concerns are addressed? If you are considering how to attract data-centre investment, identify suitable locations, strengthen your planning approach or quantify the economic case, we can help.