Data centres struggle with electricity supply constraints in 2024
- David Sleath, chief executive of Segro, expressed intentions to invest heavily in new data centres.
- Current expansion is hampered by the slow upgrading of local substations necessary for increased power supply.
- Access to power remains the primary constraint, limiting the growth potential of data centres in the UK.
In the UK, David Sleath, chief executive of Segro, has highlighted the significant investment potential in constructing new data centres, indicating that he could allocate hundreds of millions if there were sufficient electricity supply. The company, known for its robust presence in the commercial property sector, operates 35 data centres across the country. Currently, Segro's expansion efforts are impeded by lengthy wait times for the necessary upgrades to local substations, which are crucial for increasing grid capacity to meet the growing demands of data centre operations. Sleath points out that the challenge of securing adequate power has been ongoing, presenting a serious barrier to progress in the sector. This issue of electricity access is not isolated to Segro but is part of a broader infrastructure concern affecting the UK's capability to support the burgeoning data centres industry and its associated investments.