Data Centers in Fareham
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Fareham – Strategic South Coast Connectivity Hub
Executive Summary
Fareham is the prime choice for businesses needing a strategic data center presence on the UK's south coast. It provides a resilient, cost-effective alternative to the London market, ensuring high uptime and low-latency connectivity for Southern England and international subsea cable routes. This location is ideal for disaster recovery, edge computing, and serving the region's prominent maritime, defense, and technology sectors.
Fareham: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A solid secondary market with robust national fiber connectivity. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct access is via London hubs through private network extensions. |
| Power Cost | ≈£0.17/kWh – as of September 2025 | Competitively priced power with a significant renewables component in the national grid. |
| Disaster Risk | Very Low (2.1/10) – as of September 2025 | Exceptionally low risk from significant natural disasters. |
| Tax Incentives | No | The UK does not offer specific data center tax incentives at a national level. |
| Sales Tax | 20% VAT – as of September 2025 | Standard UK Value Added Tax applies to colocation and connectivity services. |
Network & Connectivity Ecosystem
Fareham benefits from its strategic location on the south coast, offering diverse fiber paths that avoid the congestion of London while maintaining strong connections to the capital.
Carrier Density & Carrier Neutrality: The Fareham market includes 6 data centers and access to over 10 network carriers, as of September 2025. While dominated by a single large provider, diverse connectivity options are available through dedicated fiber builds and partnerships.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Fareham as of September 2025. Businesses achieve secure, low-latency cloud access by connecting to the primary UK cloud regions in London via private network interconnects and wavelength services.
Internet Exchange Points (IXPs): The market relies on private peering or connects to the major London-based exchanges like LINX and LONAP. This approach ensures efficient traffic exchange with national and international networks.
Bare Metal: Bare metal server solutions are available in the region, providing dedicated compute for performance-sensitive applications. Providers such as Hivelocity and Leaseweb can service deployments in nearby UK markets.
Power Analysis
Average Cost Of Power: Industrial power in the region costs approximately £0.17/kWh, as of September 2025. This stable pricing helps ensure predictable operational expenditures for compute-intensive workloads. The UK grid mix includes around 40–50% renewables, supported by natural gas and nuclear.
Power Grid Reliability: The national grid serving the south coast is well-engineered and reliable. Data centers in Fareham are supported by redundant power feeds and substation diversity, providing a resilient foundation for critical IT infrastructure.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Fareham is centrally located within the Solent economic region, providing low-latency access to the major business hubs of Portsmouth and Southampton. This is critical for the area's defense, aerospace, maritime, and advanced manufacturing industries.
Regional Market Reach: A data center in Fareham effectively serves the entire south coast of England, a densely populated region with millions of consumers and businesses. It also acts as a key gateway for subsea cables connecting the UK to continental Europe.
Tax Advantage For Data Centers: The UK offers no direct tax incentives specifically for data center operations. However, the country maintains a competitive general corporate tax environment, which simplifies financial modeling without the need to manage complex, multi-year incentive programs.
Natural Disaster Risk
Fareham has a very low overall natural disaster risk profile, with a composite INFORM Risk score of 2.1 out of 10 as of September 2025. The location is geologically stable and outside of major storm paths.
The primary environmental factors for consideration are related to its coastal location:
- Coastal Flood Risk: The highest individual risk factor (8.3/10).
- River Flood Risk: A moderate risk (5.7/10).
Modern data centers in the area are built well above designated flood plains to mitigate these risks. Other threats, such as earthquakes (0.1/10) and tropical cyclones (0/10), are negligible.
