Data Centers in Cheltenham
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Cheltenham – Secure and Strategic UK Digital Hub
Cheltenham is a highly specialized market for organizations that prioritize security and operational resilience above all else. Its position as the center of the UK's cybersecurity and intelligence community makes it a prime location for government, defense, and technology firms whose workloads demand a secure, stable operating environment. This is not a primary interconnection hub, but a strategic site for sensitive digital assets.
Cheltenham: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong national connectivity, suited for security-focused workloads rather than global peering. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Cloud access is enabled via private network extensions to the London hub. |
| Power Cost | ≈£0.17/kWh — as of September 2025 | Aligned with UK averages; grid is a mix of renewables, gas, and nuclear. |
| Disaster Risk | Low (2.1/10) — as of September 2025 | Very low exposure to significant natural disasters, ensuring high uptime. |
| Tax Incentives | No — as of September 2025 | No specific data center incentives are offered in the United Kingdom. |
| Sales Tax | 20% VAT — as of September 2025 | The standard UK Value Added Tax rate applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The market contains 2 data centers from a single provider as of September 2025. Connectivity is focused, providing access to major UK national carriers necessary for secure, resilient communications rather than dense, low-latency peering.
Direct Cloud On-Ramps: There are no public cloud on-ramps located directly in Cheltenham. Secure, private connections to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, are established through dedicated links to carrier hotels and data centers in London.
Internet Exchange Points (IXPs): Peering is not a primary function of this market. Traffic exchange is handled via private network interconnects or routed through the major UK exchanges in London and Manchester, ensuring reliable data transit.
Bare Metal: Bare metal server solutions are available in the UK market. Providers like Hivelocity and IONOS can deploy dedicated infrastructure connected to Cheltenham facilities, offering custom hardware for specific security and performance needs.
Power Analysis
Average Cost Of Power: Industrial power costs are approximately £0.17/kWh as of September 2025. This rate is in line with the national average, making operational expense predictable for workloads hosted in the region.
Power Grid Reliability: The national grid supporting Cheltenham is well-engineered and reliable, as expected for an area with significant government and defense infrastructure. Facilities are supported by redundant power feeds to ensure consistent uptime for critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Cheltenham's data centers are strategically located to serve the UK's national security and cybersecurity sectors, including Government Communications Headquarters (GCHQ). This proximity is critical for organizations in the defense, aerospace, and high-tech industries.
Regional Market Reach: The location offers an excellent platform for serving the South West of England and the Midlands. It acts as a superb disaster recovery site for deployments primarily located in London or Manchester.
Tax Advantage For Data Centers: The UK does not offer specific tax incentives for data center construction or operation. However, companies may leverage the country's general R&D tax credits and a competitive corporate tax rate for their overall business operations.
Natural Disaster Risk
The United Kingdom has a very low natural disaster risk profile, with an overall INFORM Risk score of 2.1 out of 10 as of September 2025. The environment is exceptionally stable, minimizing threats to data center uptime from natural events.
The most notable environmental risk for the region is River Flooding, though modern data centers are built to mitigate this threat. Other potential hazards such as seismic activity, drought, or tropical cyclones are negligible and pose no significant operational risk.
