Data Centers in Cheltenham
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Cheltenham – Secure UK Alternative Edge Market
Cheltenham is a strategic market for organizations requiring a high-security, low-risk UK location outside the primary London metro. Its specialized ecosystem makes it an excellent choice for government, defense, and cybersecurity workloads that demand operational resilience and data sovereignty. This market provides a stable alternative for disaster recovery and edge deployments serving the South West of England.
Cheltenham: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | A secondary market with reliable national connectivity to primary UK hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are London and Slough; access via private network extensions. |
| Power Cost | £0.17/kWh – as of September 2025 | Competitive pricing for a UK market with a strong renewables mix. |
| Disaster Risk | Low (2.1/10) – as of September 2025 | Very low exposure to significant natural disasters, enhancing operational stability. |
| Tax Incentives | No | The UK does not offer specific tax breaks for data center investment. |
| 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: The market features 1 primary provider offering access to a focused selection of national carriers, as of September 2025. This allows for resilient, albeit not hyper-diverse, connectivity options suitable for enterprise and government needs.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Cheltenham's data centers. Secure, private connections to all major cloud providers are established via network extensions to the primary UK interconnection hubs in London and Slough.
Internet Exchange Points (IXPs): Public peering is not a feature of this market. Interconnection is handled via private peering arrangements or routed through major internet exchanges in London for access to the global internet backbone.
Bare Metal: Bare metal server options are available from providers with a national UK presence, enabling dedicated compute resources for security-sensitive applications. Hivelocity is one such provider offering services in the region.
Power Analysis
Average Cost Of Power: Industrial power rates in the Cheltenham area are approximately £0.17/kWh, as of September 2025. This price point is competitive within the UK and benefits from a national grid with a growing share of renewable energy sources, helping to stabilize long-term operational costs.
Power Grid Reliability: The national grid supplying Cheltenham is well-engineered and offers high reliability. Local data centers are supported by redundant power feeds and substation architectures designed for mission-critical uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Cheltenham's digital infrastructure is centrally located to serve the UK's national security and cybersecurity apparatus. It offers low-latency connectivity for public sector, aerospace, and technology firms operating in the region.
Regional Market Reach: The market is an effective hub for delivering services across the South West of England and the M5 corridor. It also serves as an ideal disaster recovery location for businesses with primary operations in London, offering geographic separation while maintaining strong network links.
Tax Advantage For Data Centers: The UK operates under a standard corporate tax structure without specific incentives for data center development or operation. The primary financial benefits derive from the country's stable economic framework and access to a large domestic market.
Natural Disaster Risk
Cheltenham has a very low natural disaster risk profile, with an INFORM Risk score of 2.1 out of 10, as of September 2025. This stability is a key advantage for long-term infrastructure planning and ensuring high availability.
The area's primary environmental hazards include:
- Coastal Flood: The national risk score is 8.3, though this represents a regional UK risk and does not directly impact the inland Cheltenham market.
- River Flood: A more localized risk with a score of 5.7, managed through local flood defenses.
- Drought: Scored at 1.6, representing a minor, manageable risk.
- Tsunami: Risk is negligible with a score of 1.9.
Other risks, such as earthquakes and tropical cyclones, are not significant factors in this region.
