UK Data Center Growth Lags Europe as Costs and Grid Delays Weigh, Kearney Says

TechRadar reported on Oct. 13, 2026, that the forecast places the UK second-last in Europe, ahead only of Germany at 16.2%, even though the UK is currently Europe’s second-largest data center market. Ireland is projected to grow at 36% annually over the same period, about double the UK rate, while Finland and Norway are expected to see annual demand growth of 37.6% and 36.8%, respectively.

Kearney did not attribute the slower growth to weak demand. Instead, it pointed to the UK’s poor ability to accommodate new infrastructure efficiently and affordably. Energy availability is a major blocker across Europe, with data center consumption forecast to reach 236 TWh by 2035, up from 96 TWh in 2024. The research also identified high land prices as a factor making UK data centers less competitive.

Typical costs for sites in Britain and other Western European markets are around €2.25 million per megawatt, compared with a low average of €600,000 per megawatt in the Nordic markets, according to Kearney. That gap is reflected in the growth forecasts for Finland and Norway, which are expected to expand faster than the UK.

“What has changed is that power and land are scarce enough that the next wave of capacity must match the workloads that genuinely need to be close to users, customers, and national jurisdictions,” European Data Center Lead Christoph Neunkirchen said. “Everything else will go where it is easier to build.”

For the UK, whose government says at least 6 GW of AI data center capacity will be needed by 2030, Kearney emphasized the need for lower electricity prices, cheaper land and faster grid connections. The assessment contrasts with the government’s positive narrative on the sector, TechRadar reported, and suggests that regulation and infrastructure bottlenecks could shape where future data center capacity is built in Europe.