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Data Centers in United Kingdom

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United Kingdom – Global Interconnection Powerhouse

Executive Summary

The United Kingdom serves as the primary strategic gateway for data traffic moving between North America and Europe, offering the highest density of carrier-neutral infrastructure in the region. This market is a requirement for enterprises needing ultra-low latency for financial services, content delivery, and secure multi-cloud operations. Choosing a UK deployment ensures your infrastructure resides within one of the most reliable and interconnected digital economies on the planet.

United Kingdom: At A Glance

FactorRating / DataNotes
Global Connectivity GradeA+Elite hub for global subsea cable landings.
Direct Cloud On-RampsOver 22 – as of September 2025Access to AWS, GCP, Azure, Alibaba, Oracle, and IBM.
Power Cost£0.17/kWh – as of September 2025Reflects a mix including 40–50% renewable generation.
Disaster RiskLow (2.1/10) – as of September 2025Stable environment with minimal disruption from natural events.
Tax IncentivesNo – as of September 2025No specific national tax incentives for data centers.
Sales Tax20% VAT – as of September 2025Standard national rate applies to infrastructure services.

Network & Connectivity Ecosystem

The United Kingdom ecosystem is exceptionally mature, offering clear competitive advantages for organizations requiring high-speed interconnection.

Carrier Density & Carrier Neutrality: Carrier count is rounded to over 100 carriers as of September 2025. This massive provider count creates a highly competitive pricing environment and ensures sturdy, diverse fiber paths are available for every deployment.

Direct Cloud On-Ramps: Over 22 direct on-ramps provide low-latency access to 31 cloud regions as of September 2025. This includes direct private connections to AWS, Google Cloud (GCP), Microsoft Azure, Alibaba Cloud, Oracle Cloud, and IBM Cloud, which are critical for hybrid architectures.

Internet Exchange Points (IXPs): The London Internet Exchange (LINX) and regional exchanges like IX Manchester provide a reliable peering environment that reduces transit costs and improves performance for local users.

Bare Metal: Physical infrastructure is readily available through global providers such as Hivelocity and OVHcloud, enabling rapid scaling of compute resources as of September 2025.

Power Analysis

Energy availability and grid reliability in the UK are structured to support high-density compute requirements.

Average Cost Of Power: Industrial electricity costs average £0.17/kWh as of September 2025. This pricing supports a grid that increasingly relies on renewables to help firms meet environmental requirements.

Power Grid Reliability: The grid in major data center corridors like Slough and the London Docklands is well-engineered and reliable. These areas typically benefit from multi-substation support to maintain consistent uptime for mission-critical operations.

Market Access, Business & Tax Climate

The UK business environment remains a top-tier destination for international capital and digital service providers.

Proximity To Key Business Districts: Facilities are strategically located near the City of London and Canary Wharf, as well as northern tech clusters in Manchester and Leeds. This proximity ensures data processing occurs as close to the financial and commercial engines of the country as possible.

Regional Market Reach: A deployment in the UK serves a high-wealth population of over 67 million people and provides a sturdy platform for serving broader European and Atlantic markets.

Tax Advantage For Data Centers: The UK offers a stable regulatory environment that supports long-term infrastructure investment. This stability allows enterprises to manage operational risks and capital planning with confidence in the underlying fiscal landscape.

Natural Disaster Risk

The United Kingdom maintains a Low (2.1/10) risk profile as of September 2025. The region is geologically stable, which minimizes physical risk to hardware compared to more volatile global markets.

The highest-scoring natural hazards include:

  • Coastal Flood: 8.3 (Indirect/Regional risk)
  • River Flood: 5.7
  • Natural Hazard Index: 3.5
  • Drought: 1.6

Other natural hazards like earthquakes and tropical cyclones are not material factors for operations in this region as of September 2025. Minor risks provided in national data are managed through standard facility engineering.

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