Data centres are the beating heart of the UK’s AI ambitions, but first they need decarbonising

It’s no secret that the UK has big ambitions when it comes to artificial intelligence. National strategies are being backed by major R&D investments in both the private and public sectors, so there’s clear momentum. But powering that vision requires infrastructure. Specifically, data centres. These facilities are essential for training AI models, storing vast datasets and keeping digital services running around the clock. Data centres are fundamental to the UK’s future as an AI leader, but they come with a cost that extends beyond the business’ purse strings.

Data centres consume massive amounts of electricity. As AI applications expand, so too will the carbon footprint of the systems supporting them. If we carry on with this trajectory without considering the environmental impact, this growth risks clashing with the UK’s climate goals and undermining its credibility as a leader in sustainable innovation. The ambition to be a leader in one area should not displace another. 

The International Energy Agency’s special report ‘Energy and AI’ projects that electricity demand from data centres worldwide is set to more than double by 2030 to around 945 terawatt-hours (TWh). To put that in perspective, that’s slightly more than the current total electricity consumption in Japan. 

Our data centres are critical, but they need green infrastructure. Energy efficiency cannot be pushed aside in favour of fulfilling AI ambitions. There is a real opportunity for the UK to not only take its place amongst global leaders in AI, but stand above the rest as the champion of the green infrastructure powering this rising technology. To do this, we must weave sustainable practices and solutions into every aspect of data centre design and operation, from how facilities are cooled to how power is sourced. We’re seeing common themes across nations as the world contemplates this growing demand, the main ones being scaling energy grids, the challenge of building next-generation facilities and complying with increasingly strict environmental regulations – all within constrained energy markets.

If the UK wants to lead, it needs to grab with both hands the opportunity to align the two global agendas that are already shaping what the world will look like in 50 years’ time. A study conducted by the Grantham Institute and the London School of Economics suggests that by 2035, artificial intelligence might help cut CO2 emissions by up to 5.4 billion tonnes. It all comes down to data centres.

A problem shared is a problem halved

Pressure on policy is growing throughout the region. Regulations like the Corporate Sustainability Reporting Directive (CSRD) in the EU are increasing the bar for emissions reporting's standardisation and transparency. At the same time, operators find it more difficult to meet investment standards without deeper decarbonisation initiatives owing to the EU Taxonomy's stringent energy-efficiency guidelines on what constitutes sustainable infrastructure.

Data centre decarbonisation is not limited to sustainability specialists or facilities teams. Operations, engineering, compliance and policy should all work in conjunction on this. From choosing the site and building it to sourcing power and maintaining equipment, each of these areas aids in reducing emissions over the course of a site's lifecycle. Until a collaborative approach is achieved, we'll keep seeing fragmented progress. 

We also need to face the fact that just being more efficient isn't enough anymore. As AI training and demand grow, so will the need for energy. Operators need to look at a whole-systems approach focusing on renewable energy, designs that reuse materials, and clear tracking of all types of emissions.

The barriers in play

There are already bottlenecks in the infrastructure required to support AI at scale. Grid capacity is constrained in many high-demand regions, including the South East and London. According to some providers, new connections won't be accessible for another ten years. As a result, the UK's potential to boost local computing capacity is restricted.

The development of new data centres is hampered by delays in planning and uncertainty about long-term energy availability. The UK runs the risk of turning into a net importer of computing power if these problems continue, thereby losing control and innovation to nations with more developed infrastructure plans. The UK cannot afford this situation if it hopes to maintain its global position.

The UK is not alone, in the Netherlands and Ireland, local resistance, environmental concerns, and limited grid headroom have resulted in moratoriums or delayed permissions for new data centre builds. Without cross-border coordination and long-term energy investment, EMEA’s AI ambitions could run into the same constraints already visible in the UK.

Aligning two global agendas

While funding for AI research is essential, data centre capacity and sustainability investments must also be treated with equal importance. The incentives of embracing clean energy, renewing old infrastructure, and creating quicker grid connections must also be considered by policymakers. Clear planning frameworks can help construct new and effective facilities in underserved areas.

Aligning the growth of AI infrastructure with the UK's climate commitments is also necessary. There is a chance that advancements in one area could jeopardise commitments in another if there is no clear guidance on how compute growth fits into national carbon budgets.

To stay competitive and climate-conscious, EMEA governments must align AI growth targets with realistic infrastructure planning. This requires strategic coordination between regulators, operators and power providers - not just within borders, but across them.

Data centre operators are currently facing a two-fold problem of dealing with complex infrastructure while also trying to cut down on emissions. Many operators are looking into options like modular construction, advanced cooling technologies, and the use of renewable energy sources. But constraints from outdated decisions about existing infrastructure and inconsistent reporting standards across the industry often slow down progress. Data centres need to be more open and have stringent ways of measuring emissions during both the construction and operational phases. To address these problems, setting benchmarks, writing detailed reports and sharing information across the industry are the need of the hour.

Embrace the opportunity or undermine national ambition 

The UK’s data centre sector, as the key to achieving the UK’s AI goals, is in a strong position to shape the path we take next. As demand for AI capabilities accelerates and the urgency of decarbonisation intensifies, the opportunity and the responsibility to lead through innovation has never been clearer. It needs a coordinated, whole-systems approach, one that brings together government, industry leaders, energy providers and local authorities – all working as one. Thorough planning, grid readiness and incentives for sustainable design must be central to policy. Without this alignment, the UK risks falling behind in both climate commitments and market competitiveness.

Beyond our national borders, closer coordination across the EMEA region could help drive wider consideration and adoption to greener infrastructure as data centres continue to be built across all countries to fulfil the AI demand. Shared standards, joint investment in low-carbon grids and cross-border innovation frameworks will be essential to scaling sustainably. A future built on AI must be powered by clean, robust infrastructure, which means treating data centres as the foundation to sustainable economic strategy.