New GBP £3.75 billion data centre planned for Hertsmere

DC01UK has submitted a planning application for a new data centre located in Hertsmere, Hertfordshire. The proposed facility is expected to become one of Europe's largest data centre campuses, offering up to two million square feet of floor space on an 85-acre site adjacent to the A1 and M25, just east of South Mimms Services.

Industry forecasts indicate a 53% rise in demand for data centres, driven by increased use of AI, cloud computing, storage, and data-heavy services such as video streaming. The South Mimms site aims to meet future demands, thanks to its power reservation of 400MVA from National Grid, connected by proximity to the Elstree substation. The location's access to the UK's national and international fibre optic routes and its proximity to established Availability Zones further bolster its suitability for such a large-scale project.

DC01UK's data centre could begin operations in 2029. The project is estimated to have a construction value of approximately GBP £3.75 billion, creating at least 500 jobs during the construction phase and 200 permanent jobs once operational. The economic impact extends further, potentially generating GBP £1.1 billion per annum in Gross Value Added (GVA) and creating 13,700 job opportunities across various sectors in the UK.

The plans also include local benefits such as upgrades to cycling and bus routes linking the site to Potters Bar, expansion of the local cycle hire scheme, and redistributing excess heat from the facility to local homes and businesses. A Technology and Innovation Hub, to be based in the heart of South Mimms, will provide training and apprenticeship opportunities for local residents.

The construction of DC01UK will align with Hertsmere Borough Council's Net Zero strategy. This includes low-carbon buildings, on-site renewable power generation, and a net biodiversity increase of at least 10% with 54% of the site retained as open green space.

Hertsmere is already established as a hub in the UK's film and technology industry, with investments such as the new data centre on the former Mercure Hotel site, Elstree Studios, and BBC Elstree. DC01UK is expected to attract additional global companies to invest in the region.

The government has announced that data centres will now be considered Critical National Infrastructure (CNI), similar to energy and water systems. This designation means the government will offer enhanced support to the sector in the event of critical incidents, enhancing security and resilience. The measure is expected to boost business confidence in investing in the UK's data centres, a sector generating an estimated GBP £4.6 billion annually.

Peter Kyle, Technology Secretary, stated, "Data centres play an essential role in British society, housing some of our most important data from vital NHS records to sensitive financial information. This huge GBP £3.75 billion proposed investment is a vote of confidence in our plans to support the sector to thrive, ensuring everyone across society can feel the economic benefits of its growth. To achieve this, we must make the sector resilient to the challenges of today – from heatwaves to cyber attacks – which is why only today we have announced we will class data centres as 'Critical National Infrastructure', on par with energy supply systems."

Cllr Jeremy Newmark, Leader of Hertsmere Borough Council, added, "This is incredibly exciting news. It shows that Hertsmere is an extremely desirable location for business and is a natural base for the cutting-edge technology and critical infrastructure which will serve Britain in the coming years and for many future generations. The project is aligned with the council's vision. It will be a major boost for our economic development, creative and climate change strategies."

Newmark continued, "The prospective economic benefits are clear. A scheme like this will deliver significant growth for the area. It will create many new jobs, both during and after construction, and new businesses. Of course, the application is subject to the planning process during which we will, as always, listen and speak to residents about the plans, and a public consultation on the proposals will be held for people to give their views. It has my full support."

Stephen Beard, Head of Data Centres at Knight Frank, commented, "Given the existing dearth of cloud supply against the backdrop of unprecedented demand and that of the immediate explosion of AI deployment, the requirements for suitable development sites that offer the necessary access to scalable power, internet connectivity and ultimately proximity to homes and businesses who are reliant on the data traffic within these facilities is becoming increasingly challenging. I am hugely excited for the benefit DC01UK will bring to the UK both from a direct economic investment perspective and its ability to ultimately position the UK as a leader in the global digital economy."