Show me the Power!
This week's opinion piece is on the subject of the UK's Power pricing and constraints and how will that affect AI and HPC investment now and in the future.
We also have some of the latest big news stories from across the Data Centre sector as well as the latest Colocation deals and Data Centres that are currently for sale across the globe.
OPINION PIECE
The High Cost of Energy: A Barrier to Progress
Energy has always been a cornerstone of economic growth, from the Industrial Revolution to today’s digital age. AI data centres rely on significant amounts of electricity to operate effectively. Yet, the UK’s electricity costs, which average 42 cents per kilowatt hour – compared to 16 cents in the US and 8 cents in China – place the UK at a considerable disadvantage.
The high cost of electricity not only raises operational expenses for AI businesses but also jeopardises the UK’s ability to attract data centre investments. While the US and China ramp up their energy-efficient data centre infrastructure, the UK risks falling behind due to strained resources and rising energy prices.
Lessons from Global Leaders
The UK’s energy struggles are not unique. Germany and Australia have faced similar challenges, with ambitious energy transitions leading to higher electricity costs and economic strain. Conversely, the US has embraced a pragmatic “all-of-the-above” energy strategy, leveraging shale gas, renewables, and traditional energy sources. This approach has ensured affordable and reliable energy, allowing the US to maintain its AI dominance.
China, too, has focused on scaling up data centres, supported by its low energy costs and industrial strength. Emerging players such as the Gulf States are leveraging cheap oil to try and position themselves as future AI and data centre leaders.
Turning Challenges into Opportunities
Despite the energy hurdle, the UK AI sector has opportunities to innovate and adapt. By adopting efficient technologies and strategic approaches, businesses can mitigate the impact of high energy costs. Key strategies include:
The Case for Strategic Adaptation
The UK AI sector’s resilience lies in its ability to adapt to challenging circumstances. Businesses must focus on reducing their dependence on high-cost energy and maximising efficiency. Initiatives such as dynamic server allocation, liquid cooling systems, and model optimisation can significantly lower energy consumption.
Moreover, collaboration with renewable energy providers and the adoption of innovative grid management solutions can pave the way for a more sustainable and cost-effective future. These efforts not only enhance competitiveness but will also position the UK as a global leader in energy-efficient AI operations.
Final Thoughts: A Call to Arms
The UK’s energy disadvantage poses a significant challenge to its AI ambitions. However, by turning adversity into opportunity, the sector can thrive. Innovative strategies, coupled with collective action to advocate for better energy policies and pricing will be crucial to securing the UK’s place as a global AI leader.
The future of AI in the UK depends on its ability to overcome energy constraints and embrace sustainable solutions. Businesses that rise to this challenge will not only lead in AI but also set a benchmark for energy-efficient innovation worldwide. Now is the time to act, innovate, and transform the UK’s AI energy challenge into a competitive advantage to make us a compelling location to invest in.
INDUSTRY NEWS
Datacentres in the South West of the UK are rarer than Unicorns and it will be interesting to see who buys this and what they do with it.
We are always being asked if we can design Modular DC's that can make use of waste heat. Thats the easy bit, getting the heat into homes is the challenge.
This level of investment is very encouraging. The market shows no sign of slowing even after the hiccup last week over DeepSeek.
As per my views on energy pricing and capacity in the UK. However, challenges are put in front of us to be overcome.
Small Nuclear Reactors coming to a town near you soon!
COLOCATION DEALS:
AI/HPC Deals:
Power: 130kW
Connectivity: 3GB
Racks: 1
Location: Glasgow
Designed to Tier 3 standards
Prices from: ￡39,000/month
Power: 15kW
Connectivity: 1GB
Racks: 1
Location: Liverpool
领英推荐
Designed to Tier 3 standards
Prices from: ￡5850/month
Power: 10kW
Connectivity: 1GB
Racks: 1
Designed to Tier 3 standards
Location: Swindon
Prices from ￡3900/month
LOW DENSITY DEALS & SPECIAL OFFERS
South London Tier 3 Equivalent:
￡399kW / power inclusive. Megaport enabled with multiple additional carriers. 2-30kW racks available now.
Colocation packages available across the UK that include power / cooling and connectivity:
1/4 rack / 9U / 1kW / 100MB from ￡400 month fixed price
1/2 rack / 20U / 2kW / 100MB from ￡700 month fixed price
Full rack / 46-52U / 3kW / 100MB from ￡1000 month fixed price
COLOCATION - CHESHIRE kW 1 YEAR 2YEAR 3YEAR
Footprint and Power Cost 3 ￡14,627.56 ￡51,382.68 ￡85,637.80
Footprint and Power Cost 5 ￡22,712.60 ￡75,637.80 ￡126,063.00
Footprint and Power Cost 10 ￡42,925.20 ￡136,275.60 ￡227,126.00
DATACENTRES FOR SALE:
Below are a selection of Data Centres across the UK, Europe, Nordics and Africa that are currently for sale. For further information on any of these sites please contact me directly.
UK - South East 2MW Legacy Site with existing customers - Leasehold ￡POA
UK - South 300KVA New Build. Ideal POP site for Fibre / Telco - Free hold ￡POA
South Africa - Guateng Province -6MW. Existing customers / Free hold ￡POA
Denmark - Copenhagen - 40MW - New Build Approval / Free hold ￡POA
Finland - Helsinki - 10MW - New Build Approval / Free hold ￡POA
Sweden - Stockholm - 5MW - 50MW - New Build Approval / Free hold ￡POA
*We are always looking for new sites so please contact me for a confidential conversation.
Channel Partner, Alliance Manager and Partner Manager including recruiting, developing and growing partner strategies to drive new revenue streams for sales growth.
1 个月Enjoying the weekly updates Stuart, we our data centre world is evolving fast.
Recruiting Professionals in Edge Data Centre & Cloud | Independent Data Centre Consultancy services
1 个月Hi Stuart, great article but I wondered where the 42 cents (33p) UK power cost came from as I'm seeing quite a bit less? It would be interesting to know what the average UK Data Centre operator is actually paying