Data Centers in Cardiff
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Cardiff – A Resilient UK Edge Data Hub
Executive Summary
Cardiff is an essential edge data center market providing low-latency connectivity to Wales and the South West of England. For businesses focused on digital media, financial services, and public sector workloads, Cardiff offers a cost-effective and resilient alternative to London, ensuring high-speed performance for regional end-users. This market provides robust local infrastructure while maintaining direct access to global cloud providers.
Cardiff: At A Glance
Factor | Rating / Data | Notes |
---|---|---|
Global Connectivity Grade | B | Strong regional connectivity with reliable links to major UK and European hubs. |
Direct Cloud On-Ramps | Over 1 – as of September 2025 | Microsoft Azure and Oracle Cloud are available for dedicated, private access. |
Power Cost | £0.17/kWh – as of September 2025 | Competitive industrial power rates support efficient data center operations. |
Disaster Risk | Low (2.1/10) – as of September 2025 | Very low overall exposure to significant natural disasters. |
Tax Incentives | No | The UK does not currently offer specific tax breaks for data center development. |
Sales Tax | 20% VAT – as of September 2025 | Standard UK Value Added Tax applies to equipment and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Cardiff's data centers provide access to over 10 unique network carriers, as of September 2025. The market features carrier-neutral facilities, giving customers flexibility and choice in selecting providers for redundancy and cost management.
Direct Cloud On-Ramps: The market has over 1 dedicated cloud on-ramp, enabling direct, low-latency connections to 16 cloud regions. Available providers include Microsoft Azure and Oracle Cloud, allowing businesses to build secure hybrid cloud architectures.
Internet Exchange Points (IXPs): While Cardiff does not host a major public internet exchange, most peering is handled through private network interconnects or via the primary UK hub in London. This provides efficient traffic exchange with national and international networks.
Bare Metal: Bare metal server options are available from providers operating within the Cardiff market. Companies like OVHcloud offer dedicated server solutions for workloads requiring maximum performance and control.
Power Analysis
Average Cost Of Power: Industrial electricity pricing in Cardiff averages around £0.17/kWh, as of September 2025. This competitive rate helps manage the total cost of ownership for high-density compute deployments. The UK's power mix includes significant contributions from renewables (40-50%), natural gas, and nuclear energy.
Power Grid Reliability: The power grid serving the Cardiff area is well-engineered and stable, with data centers typically supported by redundant connections to multiple substations. This infrastructure ensures high levels of uptime for mission-critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Cardiff are strategically located to serve the city's growing financial services, digital media, and public sector industries. Proximity enables low-latency performance for local businesses and government agencies concentrated in the city center and Cardiff Bay.
Regional Market Reach: Cardiff is an ideal hub for serving the entirety of Wales and the South West of England. Its location provides a distinct latency advantage for reaching millions of end-users in Bristol, Swansea, and surrounding regions compared to deploying in London.
Tax Advantage For Data Centers: The United Kingdom does not offer specific tax incentives for data centers. The primary financial advantage comes from the country's stable and predictable corporate tax environment and competitive operational costs relative to other major European hubs.
Natural Disaster Risk
Cardiff has a very low natural disaster risk profile, with an overall INFORM Risk score of 2.1 out of 10, as of September 2025. This score indicates a highly stable and safe environment for critical data infrastructure.
Key risk factors are minimal and well-managed:
- Coastal Flood: The most significant regional risk, though modern data centers are built above flood plains.
- River Flood: A moderate consideration for the area, mitigated by facility location and design.
- Other Natural Risks: Risks from tsunami, drought, and earthquakes are negligible.