Data Centers in Chester
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Chester – Reliable Colocation for Northwest England
Chester serves as a strategic secondary data center market, ideal for businesses requiring a resilient footprint in Northwest England without the cost premium of central Manchester. It provides a low-risk, well-connected location for disaster recovery and serving regional end-users, ensuring application uptime and performance across North Wales and the Liverpool-Manchester corridor.
Chester: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity with reliance on larger UK interconnection hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest hubs are in Manchester; private network extensions are readily available. |
| Power Cost | £0.17/kWh – as of September 2025 | Competitive industrial rates with a high mix of renewable sources nationally. |
| Disaster Risk | Low (2.1/10) – as of September 2025 | Very low exposure to significant natural hazards, enhancing operational stability. |
| Tax Incentives | No | No specific data center incentives are offered at the national level. |
| Sales Tax | 20% VAT – as of September 2025 | The standard UK Value Added Tax rate applies to colocation services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Chester benefits from a solid base of national and regional carriers, with over 10 providers available as of September 2025. While one provider operates the two main facilities, diverse connectivity options are available to connect to the broader UK network fabric.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Chester's data centers as of September 2025. Businesses connect to cloud providers via private network links to the primary UK cloud regions, with Manchester being the nearest major hub for dedicated interconnection.
Internet Exchange Points (IXPs): Chester does not host a public internet exchange. Peering is typically handled through private interconnects or via the nearest major IXPs in Manchester (IX Manchester) and London (LINX).
Bare Metal: Bare metal server solutions are available in the Chester market. Providers like Hivelocity and IONOS can deliver dedicated server infrastructure from their UK data centers, accessible via the national network.
Power Analysis
Average Cost Of Power: Industrial power costs in the region average approximately £0.17/kWh, as of September 2025. This competitive pricing, combined with a national grid that draws 40–50% of its power from renewables, offers a predictable and sustainable energy profile for data center operations.
Power Grid Reliability: The power grid supporting the Chester area is well-engineered and stable, characteristic of the UK's national infrastructure. Data centers in the market are supplied by redundant power feeds, ensuring high levels of uptime for critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Chester's data centers are strategically positioned to serve the commercial centers of Liverpool and Manchester, as well as business parks across Cheshire and North Wales. This location provides low-latency connectivity for finance, manufacturing, and public sector organizations in the region.
Regional Market Reach: The market effectively serves as a digital hub for Northwest England and all of North Wales. It is an excellent location for content delivery, application hosting, and disaster recovery for businesses operating within this economic corridor.
Tax Advantage For Data Centers: The United Kingdom does not currently offer tax incentives specifically for the construction or operation of data centers. The primary financial considerations are based on the UK's standard corporate tax laws and Value Added Tax (VAT) regulations.
Natural Disaster Risk
Chester has a very low natural disaster risk profile, with an INFORM Risk score of 2.1 out of 10, as of September 2025. This low-risk environment makes it a secure location for mission-critical infrastructure and data backup.
The primary environmental hazards for the region are related to flooding, though the overall risk remains minimal. The most notable risks include:
- Coastal Flood
- River Flood
- Epidemic
