Latos approved for GBP £100m AI edge data centre in Stockton-on-Tees

Latos has received planning approval to construct a new GBP £100 million data centre focused on artificial intelligence in Stockton-on-Tees, with completion expected in 2027.

The planned facility will occupy a 1,750 square metre site at Preston Farm Industrial Estate and is specifically designed to support AI computing at the so-called "neural edge". Latos, a UK-based start-up, aims to build smaller, decentralised data centres closer to end users, a move intended to reduce latency and support data-intensive tasks such as robotics, autonomous vehicles and real-time AI systems.

According to Latos, the Stockton site will consist of two data halls and will house Nvidia Blackwell GPUs, a technology optimised for large language models and computer vision. The company expects the data centre to contribute significantly to both the primary and secondary employment markets in the Tees Valley region by helping to stimulate growth in the local digital economy.

The newly approved facility represents the beginning of an ambitious five-year plan for Latos, which has outlined its intent to develop a total of 40 "neural edge" data centres throughout the country by 2030. Future locations are planned in major cities including Manchester, Birmingham, Leeds and Glasgow, with the company seeking to ensure that no location in Britain is more than 50 miles from a data centre capable of providing ultra-low latency AI services.

Latos states that its "neural edge" approach is distinct from traditional cloud computing models, where data centres are typically large, centralised, and situated farther from local populations. By contrast, the Stockton facility aims to bring AI computing closer to users, a move which the company claims will enable new use cases for technologies such as augmented reality, smart manufacturing, and predictive healthcare.

Andy Collin, Managing Director, Latos Data Centres said: "From robotics to autonomous transportation, real-time AI is set to transform how we live and work. But businesses need totally new data centre infrastructure to capitalise on these opportunities. We pioneered neural edge designs to meet this need. They support the most demanding workloads, are highly energy efficient and can be built faster and at lower cost than conventional data centres."

The Stockton data centre will feature a distributed intelligence network that will connect it to additional sites planned within Latos' national infrastructure. The facility's capabilities include AI inference in milliseconds, which is expected to enable more advanced real-time AI processes and reduce reliance on centralised cloud processing. In addition, the emphasis on sovereign data processing is intended to ensure that British data remains within the country's borders, addressing concerns around data security and compliance.

Latos notes that the Tees Valley region, where Stockton-on-Tees is located, is currently experiencing strong growth in its technology and digital sectors. This region is the fastest-growing in the UK for start-up activity and hosts a number of manufacturing and engineering firms, as well as the government-backed Centre for Process Innovation (CPI), a manufacturing innovation accelerator. Latos anticipates substantial local demand for its services as a result of this regional development.

As part of its broader national strategy, Latos is aiming to build a distributed AI processing network that will provide what it calls a "fundamental shift" away from centralised cloud computing.

Andy continued: "Our nationwide neural edge network is a fundamental shift from centralised 'cloud computing' models. It will help ensure British companies can thrive using AI, rather than being constrained by yesterday's technology."

The network, once complete, will be made up of 40 facilities, each constructed using modular techniques and standardised designs to enable faster completion and potentially lower build costs. Latos has already announced a 50,400 square metre hyperscale facility in Cardiff as part of its planned roll-out.