Data Centers in Leicester
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Leicester – Reliable Colocation for UK-Wide Reach
Leicester serves as a strategic colocation market for businesses requiring a resilient, low-risk operational base in the UK's East Midlands. It offers a cost-effective alternative to London for disaster recovery and latency-sensitive applications targeting central England, ensuring high uptime and efficient power consumption.
Leicester: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong national connectivity, with reliance on London for international routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct connections are primarily available from London data center hubs. |
| Power Cost | ≈£0.17/kWh – as of September 2025 | Competitive pricing for industrial power, supporting predictable operational costs. |
| 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 incentives for data centers. |
| Sales Tax | 20% VAT – as of September 2025 | Standard UK Value Added Tax applies to colocation and IT services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, Leicester's 5 data centers are served by over 3 unique network providers. The market offers access to major national carriers, with most facilities operating on a carrier-neutral basis, providing choice and resiliency.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Leicester's immediate data center market, as of September 2025. Secure, private connections to all major cloud providers are established through network extensions to hubs in London.
Internet Exchange Points (IXPs): Public peering is not established within Leicester. Interconnection is typically handled through private peering arrangements or via connections to major exchanges in London, such as LINX and LONAP.
Bare Metal: Bare metal server options are available in the broader UK market, providing dedicated compute for performance-critical workloads. Providers like Hivelocity and phoenixNAP offer solutions accessible from the region.
Power Analysis
Average Cost Of Power: Industrial electricity pricing in the region is approximately £0.17/kWh, as of September 2025. This competitive rate helps manage the total cost of ownership for high-density compute deployments.
Power Grid Reliability: The national grid supporting Leicester is well-engineered and stable, with data center operators typically connected to multiple substations to ensure high levels of uptime. The power mix features a significant and growing portion from renewable sources.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Leicester's data centers are strategically positioned to serve the logistics, manufacturing, and technology sectors of the East Midlands. This location provides low-latency connectivity to businesses in Leicester, Nottingham, Derby, and Birmingham.
Regional Market Reach: The market is an excellent hub for serving the central UK population, offering a solid base for content delivery, application hosting, and disaster recovery services outside the primary London corridor.
Tax Advantage For Data Centers: The UK currently offers no specific tax incentives for the development or operation of data centers. Businesses should operate under the standard corporate tax structure.
Natural Disaster Risk
Leicester 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 critical infrastructure hosting and disaster recovery planning.
The primary environmental hazards are national in scope and include:
- Coastal Flood: Risk is present at a national level but is not a direct threat to this inland location.
- River Flood: The region has moderate exposure to potential river flooding events.
- Tsunami: A low-probability national risk with no direct impact on Leicester.
- Drought: A minor national consideration.
