Data Centers in Leicester
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Leicester – Low-Risk UK Colocation Hub
Leicester offers a compelling alternative to the primary UK data center markets of London and Manchester. For businesses prioritizing operational stability, cost-effective power, and low natural disaster risk, Leicester provides a strategic location for secondary IT deployments, disaster recovery sites, and serving the Midlands region with minimal latency.
Leicester: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid national connectivity, though fewer international carriers than primary hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Connect via London or Manchester for direct cloud access through PNI/wave. |
| Power Cost | ≈£0.17/kWh – as of September 2025 | Competitive industrial power rates support cost-effective operations at scale. |
| Disaster Risk | Very Low (2.1/10) – as of September 2025 | Exceptionally low exposure to significant natural disasters, enhancing uptime. |
| Tax Incentives | No | No specific data center incentives are available at the national level. |
| Sales Tax | 20% VAT – as of September 2025 | The standard UK Value Added Tax applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Leicester's 5 data centers are served by over 3 network providers, as of September 2025. While not as dense as London, the market offers resilient connectivity options suitable for enterprise and disaster recovery workloads. Carrier-neutral facilities provide access to multiple backbone networks for redundancy.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Leicester, as of September 2025. Businesses connect to the 0 cloud regions available in the UK via high-speed fibre links to major interconnection hubs like London and Manchester, where providers offer private network extensions to all major clouds.
Internet Exchange Points (IXPs): The market does not host a major public Internet Exchange Point. Peering is typically handled privately or through IXPs in London, such as LINX, which ensures efficient traffic exchange across the UK and Europe.
Bare Metal: Bare metal server options are available in the Leicester market. Providers like phoenixNAP and ColoCrossing offer dedicated server solutions that provide direct access to compute resources without a virtualization layer.
Power Analysis
Average Cost Of Power: Industrial electricity costs in the region are approximately £0.17/kWh, as of September 2025. This competitive pricing makes Leicester an attractive location for managing the high operational expenses associated with compute-intensive infrastructure. The UK's energy mix includes significant contributions from renewables (40–50%), natural gas, and nuclear power.
Power Grid Reliability: The national power grid serving Leicester is well-engineered and reliable. Data centers in the area are typically supported by redundant power feeds and substation diversity, ensuring high levels of uptime for critical IT systems.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Leicester's data centers are strategically positioned to serve the city's logistics, engineering, and manufacturing sectors. Their location in the East Midlands provides low-latency connectivity crucial for supply chain management and industrial operations throughout the region.
Regional Market Reach: From Leicester, businesses can effectively reach a large population across the Midlands, a key economic hub in the UK. This central location is ideal for disaster recovery sites for companies headquartered in London or for content delivery networks targeting central England.
Tax Advantage For Data Centers: The United Kingdom does not offer specific tax incentives for data center construction or operation. The primary financial advantage comes from competitive operational costs, such as power, rather than direct government subsidies.
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 score indicates an exceptionally stable environment for critical infrastructure, minimizing threats to operational continuity.
The most notable environmental risks, though still low, include:
- Coastal Flood: 8.3/10 (national figure)
- River Flood: 5.7/10
- Drought: 1.6/10
- Earthquake: 0.1/10
Being an inland location, Leicester is not directly exposed to coastal flooding or tsunami risks. The overall hazard and exposure risk is minimal, making it one of the safest locations in the UK for data center deployment.
