t cht lk
t cht lk
Tom Glover, Head of Data Centre Transactions at JLL
phase and scaling up to 100MW or more as demand grows. Reliable power infrastructure and redundant connections are essential for ensuring continuous operation. Our report highlights the power transmission challenges delaying data centre developments by up to four years or more, making proximity to existing transmission lines a crucial factor in site selection.
• Higher price sensitivity: Cost considerations play a significant role in these deployments. Investors typically aim for locations offering a balance of resources and affordability, with a price sensitivity threshold of around 50 % above the next best alternative.
Navigating the challenges: Time, permits and emerging locations
Securing the right location is not just about finding available land and power. Lengthy timelines for obtaining permits and connecting to power grids can significantly impact project delivery and the ability to bring new capacity online quickly.
Established data centre hubs like Slough, Stockley Park, Hayes and Docklands in the UK will continue to see strong demand. However, the emergence of AI training facilities is bound to drive interest in new locations with access to abundant land and power, such as Scotland, Blythe, Leeds and Newport.
The UK government’ s recent announcement of the first AI Growth Zones – designated areas designed to expedite planning approvals for data centres – directly address key challenges hindering the rapid expansion of these facilities. Initiatives such as this are a welcome step in a market currently constrained by limited capacity.
Conclusion
As data volumes continue to explode and new technologies emerge, the demand for strategically located data centres will only intensify. The ability to secure land in areas with abundant power, robust connectivity and a supportive regulatory environment will be paramount to success. Emerging trends like
The demand for strategically located data centres will only intensify.
edge computing will further shape location strategies, requiring a holistic approach that considers not only cost and availability but also environmental impact and long-term viability. JLL is actively engaged in helping clients navigate these complex challenges and identify strategic locations. In this dynamic market, securing the right land in the right location is not just an advantage – it’ s a necessity for thriving in the datadriven future. p
www. intelligentcio. com INTELLIGENTCIO EUROPE 71