Data Centers in Newcastle

Newcastle – Resilient North UK Digital Hub

Newcastle serves as a key digital hub for Northern England and Scotland, offering a cost-effective and low-risk alternative to the crowded London market. Its strong connectivity and stable environment make it an excellent choice for disaster recovery, secondary deployments, and latency-sensitive applications serving the region. This market provides reliable infrastructure to support growth without the premium costs of the capital.

Newcastle: At A Glance

Network & Connectivity Ecosystem

Newcastle's connectivity is solid, benefiting from its strategic location on national fiber routes and as a landing point for subsea cables. The ecosystem is well-suited for enterprises requiring resilient network performance across the UK and into continental Europe.

Carrier Density & Carrier Neutrality: The market features access to over 3 providers, with a total of 10 data center facilities available as of September 2025. Carrier-neutral facilities provide diverse options for interconnection.

Direct Cloud On-Ramps: There are no public cloud on-ramps directly within Newcastle as of September 2025. Businesses connect to major cloud providers like AWS, Google Cloud, and Microsoft Azure via dedicated network links to the nearest primary hubs, such as Manchester and London.

Internet Exchange Points (IXPs): While Newcastle does not host a major public internet exchange, peering is commonly handled privately or routed through IXPs in Manchester (IXManchester) or London (LINX, LONAP) to ensure efficient traffic exchange.

Bare Metal: Bare metal server options are available in the Newcastle market. Providers such as IONOS and Leaseweb offer dedicated server solutions that give businesses full control over their hardware infrastructure.

Power Analysis

The United Kingdom's power infrastructure is both modern and reliable, with Newcastle benefiting from a stable national grid and a strong regional distribution network.

Average Cost Of Power: The average industrial electricity cost is approximately £0.17/kWh as of September 2025. This competitive pricing helps manage the significant operational expense of high-density computing.

Power Grid Reliability: The grid serving the Newcastle area is well-engineered and supports the uptime requirements of modern data centers. Facilities are typically fed by redundant power from multiple substations, ensuring consistent and reliable energy delivery.

Market Access, Business & Tax Climate

Newcastle provides strategic access to key commercial centers in Northern England and Scotland, supported by a favorable business environment.

Proximity To Key Business Districts: Data centers in Newcastle are positioned to serve the city's growing tech, finance, and public sectors. The location provides low-latency connectivity to business parks like Cobalt Park and Quorum Business Park.

Regional Market Reach: The market is an ideal point of presence for serving the populations of the North East of England and southern Scotland. Its location minimizes latency for end-users throughout this extensive catchment area.

Tax Advantage For Data Centers: The UK does not offer specific tax incentives for data centers. However, businesses may benefit from broader national programs related to capital allowances for plant and machinery, which can reduce overall tax liability.

Natural Disaster Risk

Newcastle's natural disaster risk profile is very low, with an INFORM Risk score of 2.1 out of 10 as of September 2025. This stability is a primary advantage for businesses prioritizing uptime and operational continuity.

The most relevant environmental hazards are primarily related to weather and localized flooding, though all risks are minimal. Key hazards include:

• Coastal Flood: 8.3/10
• River Flood: 5.7/10
• Tsunami: 1.9/10
• Drought: 1.6/10

Risks from earthquakes (0.1/10) and tropical cyclones (0/10) are negligible.