Data Centers in Cheltenham
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Cheltenham – Secure Digital Hub for UK Operations
Cheltenham serves as a strategic colocation market for enterprises requiring high security and resilient infrastructure within the United Kingdom. Its location offers a strong alternative to the congested London market, providing robust connectivity options for government, aerospace, and technology sectors focused on protecting critical data and ensuring uptime.
Cheltenham: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable national connectivity, with fewer international routes than primary hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct connection is available via network extension to hubs like London. |
| Power Cost | ≈£0.17/kWh – as of September 2025 | Sourced from a national grid with a high renewable energy component. |
| Disaster Risk | Very Low (2.1/10) – as of September 2025 | Minimal exposure to significant natural disasters, enhancing operational stability. |
| Tax Incentives | No | The UK does not offer specific tax breaks for data center development. |
| Sales Tax | 20% VAT – as of September 2025 | The standard Value Added Tax applies to equipment and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality Cheltenham facilities provide access to over 15 carriers, as of September 2025. The market is supported by carrier-neutral data centers, allowing customers to choose from a variety of national and regional network providers to optimize cost and performance.
Direct Cloud On-Ramps There are no direct public cloud on-ramps within Cheltenham's data centers, as of September 2025. Secure, low-latency connections to major cloud providers like AWS, Google Cloud, and Microsoft Azure are achieved through private network links to the primary UK interconnection hub in London.
Internet Exchange Points (IXPs) Public peering is not a major feature of this market. Most interconnection is handled privately or routed through major national exchanges like the London Internet Exchange (LINX) to ensure efficient traffic exchange.
Bare Metal Bare metal server options are available in the broader UK market, enabling businesses to deploy dedicated compute resources. Providers such as Hivelocity and phoenixNAP offer solutions that can be connected to infrastructure in Cheltenham.
Power Analysis
Average Cost Of Power Industrial power costs in the region are approximately £0.17/kWh, as of September 2025. This pricing is competitive within the UK and allows for predictable operational expenditure for compute-heavy workloads. The national grid mix includes 40–50% renewables.
Power Grid Reliability The power grid supporting Cheltenham is well-engineered and stable, consistent with UK standards. Data centers in the area are typically fed by redundant power sources from the national grid to ensure high levels of uptime for critical systems.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Cheltenham is home to the Government Communications Headquarters (GCHQ), making it a critical hub for cybersecurity, intelligence, and defense contractors. Its data centers serve these high-security government operations as well as a growing cluster of technology and aerospace firms.
Regional Market Reach From Cheltenham, businesses can effectively serve the South West and Midlands regions of England, as well as Wales. The location provides a good geographical alternative for disaster recovery sites for companies with a primary presence in London or Manchester.
Tax Advantage For Data Centers The United Kingdom does not offer specific tax incentives for data center construction or operation. Businesses should plan for the standard 20% Value Added Tax (VAT) on hardware, software, and colocation services.
Natural Disaster Risk
The United Kingdom has a Very Low overall natural disaster risk profile, with an INFORM Risk score of 2.1 out of 10, as of September 2025. This stability makes it an excellent choice for businesses prioritizing operational resilience and uptime.
Key risks for the region are primarily weather-related, with the highest individual scores associated with:
- Coastal Flood: 8.3/10 (A national risk that has minimal direct impact on inland Cheltenham)
- River Flood: 5.7/10
- Drought: 1.6/10
- Tsunami: 1.9/10 (Presents negligible risk to Cheltenham's inland location)
Risks from earthquakes and tropical cyclones are extremely low. The primary focus for infrastructure planning is on mitigating potential flooding and ensuring grid stability during weather events.
