Data Centers in Leicester
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Leicester – Central Hub for UK Digital Infrastructure
Executive Summary
Leicester provides a strategic data center location for organizations requiring a resilient UK presence outside the high-cost London market. Its central position makes it an excellent choice for disaster recovery, national content delivery, and serving the commercial and industrial heart of the Midlands. This market delivers reliable infrastructure and connectivity without the premium expense and congestion of primary hubs.
Leicester: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid national and regional connectivity, ideal for UK-focused operations. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Connect via London hubs; private extension options are available. |
| Power Cost | ≈£0.17/kWh – as of September 2025 | Competitive UK pricing, offering savings over London facilities. |
| Disaster Risk | Low (2.1/10) – as of September 2025 | Very low exposure to significant natural disasters. |
| Tax Incentives | No – as of September 2025 | The UK does not offer specific data center incentives. |
| Sales Tax | 20% VAT – as of September 2025 | Standard UK Value Added Tax applies to services. |
Network & Connectivity Ecosystem
Leicester's connectivity is built on its strategic position within the UK, offering reliable access to national networks. While not a primary interconnection hub itself, it serves as a capable secondary market and disaster recovery location.
Carrier Density & Carrier Neutrality: The market features 5 data centers from 3 providers, as of September 2025. These facilities provide access to major UK carriers, ensuring redundant connectivity options for enterprise needs.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Leicester, as of September 2025. Secure, low-latency connections to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, are established via dedicated fiber links to primary hubs in London and Manchester.
Internet Exchange Points (IXPs): Public peering is handled through national hubs. Most network operators in Leicester connect to LINX (London Internet Exchange) or IXManchester to peer with other networks, ensuring efficient traffic exchange across the UK and internationally.
Bare Metal: Bare metal server options are available in the region, providing dedicated compute resources for performance-sensitive applications. Providers such as IONOS and Leaseweb offer solutions accessible from the Leicester market.
Power Analysis
The United Kingdom's power infrastructure is both modern and reliable, and Leicester benefits from this stability.
Average Cost Of Power: Industrial power costs in the region are approximately £0.17/kWh, as of September 2025. This rate is competitive within the UK and offers a notable cost advantage compared to operating in the more expensive London market. The grid mix includes a significant and growing share of renewables (40-50%), with natural gas and nuclear power providing stable baseload capacity.
Power Grid Reliability: The national grid is well-engineered and highly reliable, with multiple substations and redundant feeds serving key industrial areas. Data centers in the market are supported by this sturdy infrastructure, ensuring high levels of uptime.
Market Access, Business & Tax Climate
Leicester's location in the East Midlands makes it a key logistical and commercial center.
Proximity To Key Business Districts: Data centers in Leicester are positioned to serve the region's strong logistics, manufacturing, and e-commerce fulfillment industries. The city's central location provides low-latency access to businesses throughout the Midlands and beyond.
Regional Market Reach: With its location on the M1 motorway corridor, Leicester offers excellent digital and physical access to a massive population base across the Midlands and Northern England. It is a logical and cost-effective site for disaster recovery for companies with a primary presence in London.
Tax Advantage For Data Centers: The UK currently offers no specific tax incentives for data center construction or operation. Businesses benefit from a clear and established corporate tax structure, providing predictability for financial planning and investment.
Natural Disaster Risk
Leicester has a very low risk of natural disasters, making it a safe location for critical IT infrastructure. The overall INFORM Risk score is 2.1 out of 10, classifying the area as "Very Low Risk," as of September 2025.
Key risk factors are minimal and include:
- River Flood: The most notable environmental risk, though modern flood defenses mitigate the threat to commercial and industrial zones.
- Drought: A minor consideration with minimal operational impact.
Risks from earthquakes and tropical cyclones are negligible. Its inland location protects it completely from tsunamis and coastal flooding.
