Equinix to invest GBP £3.9 billion in Hertfordshire data campus

Equinix has completed the acquisition of an 85-acre plot in Hertfordshire, with plans to invest GBP £3.9 billion in a data centre campus aimed at expanding the UK's digital infrastructure.

The project, previously referred to as DC01UK, is anticipated to add more than 250MW of compute capacity to the UK's national infrastructure, supporting ambitions around artificial intelligence (AI) development. This capacity is expected to service sectors including healthcare, life sciences, the public sector, financial services, manufacturing, and entertainment.

Economic contribution

KPMG estimates the Hertfordshire Campus development could contribute up to GBP £3 billion in annual Gross Value Added (GVA) to the UK economy during its construction phase. Once operational, ongoing activities are expected to generate GBP £260 million in annual GVA. These figures take account of effects from construction, supply chain spending, and employee wages.

The site is projected to generate around 2,500 jobs locally during construction, with over 200 permanent and primarily highly skilled roles created once the data centre is operational. Wages associated with direct and indirect employment could reach approximately GBP £120 million, according to KPMG.

Sustainability focus

Sustainability considerations have formed a key part of the site's design and future operations. Equinix has planned dry cooling for the facility to ensure water consumption remains comparable to that of conventional office buildings.

Further environmental plans include retaining 54% of the land as open space and a commitment to create new ecological habitats that will deliver a biodiversity net gain of at least 10%. Equinix intends to work closely with local residents and businesses to invest in educational, employment, and biodiversity programmes in the surrounding area.

Equinix's European facilities, including those in the UK, currently operate with 100% renewable energy. The company aims to achieve this standard globally for all its facilities by 2030. Additionally, all sites are designed to enable the export of heat, allowing for future energy conservation initiatives to benefit the local community.

Community and partnerships

The Managing Director for Equinix UK, James Tyler, highlighted the company's approach to partnership and long-term presence in the community. He stated:

"The UK is a cornerstone of the global economy and is a natural home for our most substantial investment in Europe to date. This development brings a significant amount of data centre capacity to Britain, contributing to the government's AI growth ambition. But this investment goes far beyond building the infrastructure needed to unlock the UK's digital potential. It's the evolution of an ongoing partnership with the local and national community."

Liz Kendall, Secretary of State for Science, Innovation and Technology, commented on the scale of the investment and its significance for the UK, saying:

"This £3.9 billion investment is a huge win for Britain. It will give businesses - from life sciences to high street banks - the ability to connect to thousands of other businesses across the world in an instant, powering our AI ambitions, boosting growth and creating hundreds of well-paid jobs. This is about making sure the UK is at the forefront of the digital revolution and ensuring that every community benefits from the opportunities this new technology brings."

Luisa Cardani, Head of Data Centres at techUK, described the announcement as illustrative of the UK's opportunity to further develop its digital infrastructure:

"This announcement reflects the scale of opportunity the UK has to strengthen its digital foundations. As highlighted in our Foundations for the Future report, data centres are the backbone of our economy - they enable innovation, productivity and growth across every sector. Continued investment in sustainable, resilient digital infrastructure will be critical to delivering on the UK's ambitions for AI and long-term economic prosperity."

Existing presence

The Hertfordshire development will build upon Equinix's existing footprint in the UK, which includes 14 data centres serving over 1,300 customers, many headquartered domestically. Equinix reports supporting over 10,000 customers globally and employs more than 1,200 people in the UK, contributing GBP £145 million directly to household income.

Equinix has committed to close partnership with the local community throughout the development and operation of the Hertfordshire site, with a focus on supporting local talent and the environment.