Data Centers in Chester
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Chester – Reliable UK Edge Connectivity
Chester serves as a strategic edge data center market, offering reliable colocation and connectivity for businesses targeting Northwest England and North Wales. It provides a stable, low-risk operational environment, ideal for disaster recovery, content delivery, and localized application hosting without the cost overhead of major metropolitan hubs.
Chester: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, with primary access to national hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct access is via Manchester, with private network extensions available. |
| Power Cost | ≈£0.17/kWh – as of September 2025 | Industrial pricing is competitive for the UK market. |
| Disaster Risk | Very Low (2.1/100) – as of September 2025 | Minimal exposure to significant natural hazards ensures high uptime. |
| Tax Incentives | No | The UK does not offer specific data center tax incentives. |
| Sales Tax | 20% VAT – as of September 2025 | Standard UK Value Added Tax applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a secondary market, Chester provides access to over a dozen national and regional carriers, as of September 2025. The two facilities in the market operate on a carrier-neutral basis, allowing for flexible network service procurement.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Chester, as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure via dedicated circuits to the primary UK interconnection hub in Manchester.
Internet Exchange Points (IXPs): Public peering is not available directly within Chester. Most network operators peer privately or connect to regional IXPs in Manchester to exchange traffic efficiently.
Bare Metal: Bare metal server options are available, primarily through providers offering services out of nearby Manchester hubs. This allows businesses to deploy dedicated compute without capital expenditure.
Power Analysis
Average Cost Of Power: Industrial electricity pricing in the Chester area is approximately £0.17/kWh, as of September 2025. This cost is in line with the UK average, making it a predictable and manageable operating expense for compute infrastructure. The national grid mix includes a substantial and growing portion from renewables.
Power Grid Reliability: The power infrastructure supporting Chester's data centers is well-engineered, drawing from the resilient UK national grid. Facilities are typically supported by redundant power feeds from separate substations, ensuring high levels of uptime for critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Chester are well-positioned to serve the business and industrial centers of Northwest England and North Wales. This includes key sectors like finance, manufacturing, and public services in Liverpool, Manchester, and Cheshire.
Regional Market Reach: The location provides low-latency connectivity to a significant population of several million people across the region. It is an effective point of presence for content delivery networks and service providers targeting consumers and businesses outside of London.
Tax Advantage For Data Centers: The United Kingdom does not provide specific tax breaks for data center development or operation. The primary financial structure is the standard 20% Value Added Tax (VAT) applied to services.
Natural Disaster Risk
Chester is located in a region with a very low risk of natural disasters, with an overall INFORM risk score of 2.1 out of 100, as of September 2025. This low-risk profile makes it an excellent choice for businesses prioritizing infrastructure stability and uptime.
The most notable environmental hazards, though still rated as low, include:
- Coastal Flood: 8.3/100
- River Flood: 5.7/100
- Drought: 1.6/100
- Tsunami: 1.9/100
Risks from earthquakes and tropical cyclones are negligible.
