Data Centers in Leicester
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Leicester – Strategic Midlands Colocation Hub
Executive Summary
Leicester is an effective secondary UK market for enterprises focused on cost control, disaster recovery, and serving the Midlands region. Its primary advantage is providing reliable, lower-cost colocation without the operational overhead of London. This makes it a strong choice for workloads requiring geographic diversity and resilience.
Leicester: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong national connectivity; limited international carriers directly present. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Connect via London or Manchester through private network extensions. |
| Power Cost | ≈£0.17/kWh — as of September 2025 | Competitive pricing compared to larger UK metropolitan markets. |
| Disaster Risk | Low (2.1/10) — as of September 2025 | Minimal exposure to significant natural disasters. |
| Tax Incentives | No — as of September 2025 | Data center-specific incentives are not currently offered. |
| Sales Tax | 20% VAT — as of September 2025 | Standard UK Value Added Tax rate applies to services. |
Network & Connectivity Ecosystem
Leicester provides solid national connectivity, acting as a secondary hub to the UK's primary data center markets in London and Manchester.
Carrier Density & Carrier Neutrality The market features 5 data centers with access to 3 unique network providers, as of September 2025. This focused carrier environment is well-suited for deployments that do not require massive carrier diversity but prioritize resilience and specific connectivity paths.
Direct Cloud On-Ramps There are no direct cloud on-ramps within Leicester, with 0 cloud regions accessible locally as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure via private network links to peering points in London or Manchester.
Internet Exchange Points (IXPs) Public peering is not a feature of the Leicester market. Most network peering is handled privately or routed through the major UK Internet Exchanges in London (LINX) and Manchester (IXManchester).
Bare Metal Bare metal server capacity is available, enabling businesses to deploy dedicated hardware. Providers like Hivelocity and phoenixNAP can service the region, offering customized server solutions for performance-sensitive applications.
Power Analysis
Average Cost Of Power Industrial power costs in Leicester average approximately £0.17/kWh, as of September 2025. This competitive rate offers a significant operational cost advantage over the more expensive London market. The UK's energy mix includes substantial contributions from renewables (40–50%), natural gas, and nuclear power.
Power Grid Reliability The power grid serving the region is well-engineered and stable, reflecting the UK's national infrastructure standards. Data centers in the area are supported by reliable power feeds suitable for mission-critical enterprise operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts Data centers in Leicester are positioned to support the region's strong logistics, manufacturing, and engineering sectors. Proximity to the M1 motorway provides excellent access for businesses operating within the UK's "Golden Triangle" of logistics.
Regional Market Reach Leicester provides low-latency connectivity to the entire Midlands region, a population of over 10 million people. It serves as an excellent disaster recovery site for companies with a primary presence in London or as a main hub for businesses focused on Central England.
Tax Advantage For Data Centers The United Kingdom does not currently offer tax incentives specifically for data center construction or operation. The primary financial benefit comes from a stable and predictable corporate tax system combined with lower operational costs outside of London.
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. The area is not prone to major seismic, cyclonic, or coastal events, which enhances its suitability for critical data infrastructure.
Key environmental risks are limited and manageable:
- River Flood: This is the most notable natural hazard for the region, though modern data centers are built to mitigate this risk.
- Drought: A minor consideration with minimal operational impact.
