Data Centers in Cardiff
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Cardiff – Resilient UK Interconnection Hub
Executive Summary
Cardiff is a strategic data center market for organizations requiring a reliable UK presence outside the high-cost, high-density London area. It provides a compelling platform for disaster recovery, serving workloads for Wales and South West England, and ensuring operational resilience without sacrificing core connectivity to essential cloud services. This market is built for stability, not speculation.
Cardiff: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A solid regional hub with good national connectivity; not a primary global gateway. |
| Direct Cloud On-Ramps | Over 1 – as of September 2025 | Direct connections include Microsoft Azure and Oracle Cloud, with private extension options. |
| Power Cost | £0.17/kWh – as of September 2025 | Competitive pricing for a developed UK market, offering potential operational cost savings. |
| Disaster Risk | Low (2.1/10) – as of September 2025 | Minimal exposure to significant natural disasters, enhancing infrastructure uptime. |
| Tax Incentives | No – as of September 2025 | The UK does not offer specific data center tax incentives at this time. |
| Sales Tax | 20% VAT – as of September 2025 | Standard UK Value Added Tax applies to services. |
Network & Connectivity Ecosystem
Cardiff offers a mature and reliable connectivity ecosystem, ideal for production and secondary disaster recovery sites. The market is defined by its quality of service and direct access to key networks.
Carrier Density & Carrier Neutrality With over 10 network carriers present in the area as of September 2025, Cardiff provides sufficient choice for creating redundant, multi-carrier network architectures. Colocation facilities are predominantly carrier-neutral, allowing flexibility in selecting providers.
Direct Cloud On-Ramps The market features over 1 direct cloud on-ramp as of September 2025. This enables low-latency, private connections to Microsoft Azure and Oracle Cloud, supporting hybrid architectures across 16 global cloud regions.
Internet Exchange Points (IXPs) The primary exchange is LINX Wales, which keeps regional traffic local and improves performance for Welsh end-users. For broader peering, most traffic routes through private connections or hubs in London.
Bare Metal Bare metal server availability is good, with providers offering dedicated compute for performance-sensitive applications. Options from global suppliers like Hivelocity and phoenixNAP are typically available.
Power Analysis
Average Cost Of Power Industrial power costs average around £0.17/kWh as of September 2025. This price point is competitive within the UK and can offer significant operational savings compared to more expensive European primary markets.
Power Grid Reliability The power grid serving Cardiff's data center zones is well-engineered and stable, consistent with UK standards. Facilities are supported by redundant power feeds from multiple substations, ensuring high levels of uptime for critical infrastructure.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Cardiff are positioned to serve the city's growing media and technology sectors, public sector organizations, and financial services companies. Proximity to the M4 corridor provides a direct link to Bristol and London.
Regional Market Reach Cardiff is the principal digital gateway to Wales and a strong secondary hub for the South West of England. It is an excellent location for disaster recovery solutions for businesses with primary operations in London, offering geographic separation while remaining well-connected.
Tax Advantage For Data Centers The United Kingdom currently offers no specific tax incentives for data center development or operation. The primary financial advantage comes from the country's stable and predictable corporate tax framework.
Natural Disaster Risk
Cardiff's overall natural disaster risk is very low, with an INFORM Risk score of 2.1 out of 10 as of September 2025. This stability is a significant advantage for mission-critical infrastructure requiring maximum uptime.
While the overall threat is minimal, key environmental factors to consider include:
- Coastal Flood: The highest individual risk factor, reflecting the city's coastal location.
- River Flood: A moderate risk associated with the River Taff and other local waterways.
- Drought & Tsunami: Both are considered very low-probability events.
