Data Centers in Reading

Reading – UK's Premier Tech Corridor Hub

Reading is a critical data center market for businesses targeting London and Southern England without the cost and congestion of the capital. As the heart of the UK's M4 technology corridor, it offers exceptional network connectivity and a highly resilient operating environment, ideal for production workloads and disaster recovery sites that demand low-latency access to London's financial and commercial hubs. This market provides a strategic balance of performance, cost, and stability.

Reading: At A Glance

Network & Connectivity Ecosystem

Reading sits at a nexus of national fiber routes, making it one of the best-connected locations outside of London. The region's infrastructure is purpose-built to serve the high-tech industries located along the M4 corridor.

Carrier Density & Carrier Neutrality With 11 data centers operated by 8 providers, the market offers access to dozens of unique network carriers, as of September 2025. Facilities are overwhelmingly carrier-neutral, providing competitive options for transit, transport, and wavelength services.

Direct Cloud On-Ramps There are no public cloud on-ramps located directly in Reading, as of September 2025. However, dedicated and redundant fiber paths provide low-latency private access to all major cloud providers in nearby London, including AWS, Google Cloud (GCP), and Microsoft Azure.

Internet Exchange Points (IXPs) While Reading does not host a major public exchange, its primary interconnection value comes from its proximity to the London Internet Exchange (LINX). Direct, low-latency links allow networks in Reading to peer efficiently with hundreds of global networks.

Bare Metal Bare metal server availability is strong, with providers offering dedicated compute for performance-sensitive applications. Global providers like Hivelocity and phoenixNAP serve the broader UK market, often deploying from facilities in or near the London metro area.

Power Analysis

The electrical grid supporting the Reading area is stable and well-maintained, reflecting its importance as a national economic hub.

Average Cost Of Power Industrial power costs are approximately £0.17/kWh, as of September 2025. This price point is in line with other major UK technology centers, making it a predictable and manageable operating expense for high-density deployments.

Power Grid Reliability The power grid is highly reliable, with data centers in the region typically supported by redundant feeds from multiple substations. The UK's national grid benefits from a diverse energy mix, including renewables (40–50%), natural gas, and nuclear power, contributing to overall stability.

Market Access, Business & Tax Climate

Reading's strategic location offers an ideal blend of access to talent, industry, and key population centers.

Proximity To Key Business Districts Reading is the commercial capital of the Thames Valley and M4 corridor, often called the UK's Silicon Valley. Data centers here directly serve major technology, life sciences, and financial services companies headquartered in the area, providing low-latency infrastructure for their operations.

Regional Market Reach Deployments in Reading effectively serve the entirety of Southern England, including the London metro area, Bristol, and Southampton. Its location west of London also makes it an excellent disaster recovery site for firms with primary infrastructure in the capital's eastern Docklands area.

Tax Advantage For Data Centers The primary financial advantage is operational, leveraging lower real estate and ancillary costs compared to Central London. While the UK lacks specific data center tax incentives, its stable corporate tax environment provides predictability for long-term investments.

Natural Disaster Risk

Reading's location provides a safe and stable environment for critical digital infrastructure.

The United Kingdom has a Very Low overall natural hazard risk score of 2.1 out of 10, as of September 2025. The risk profile is minimal, ensuring high levels of operational uptime.

Key risks for the region include:

• Coastal Flood: 8.3/10 (National risk; Reading is inland and not directly affected)
• River Flood: 5.7/10
• Drought: 1.6/10
• Earthquake: 0.1/10

Risks from tsunami and tropical cyclones are effectively zero. The area's primary environmental consideration is river flooding in specific low-lying areas, which modern data center construction standards easily mitigate.