Data Centres and Digital Infrastructure Growth in Slough: Current Landscape and Future Prospects.

Slough, a leading town in Berkshire, has emerged as a pivotal hub for data centres and digital infrastructure in the U.K. Its strategic location, robust connectivity, and proactive development strategies have attracted significant investments from major industry players.

Pat Hayes, Executive Director of Regeneration, Housing & Environment at Slough Borough Council, said: “Slough has firmly established itself as a powerhouse for digital infrastructure, thanks to its strategic location, robust connectivity, and forward-thinking approach to development. Our focus is on creating the right conditions for investment and innovation, ensuring that Slough remains at the forefront of the UK’s data centre landscape. With continued investment and a commitment to sustainable growth, the potential for further expansion in this sector is immense.”

Existing Data Centre Landscape

Slough’s prominence in the data centre industry is well-established. The Slough Trading Estate, one of the largest industrial estates in Europe, hosts numerous data centres operated by leading companies. Digital Realty, for instance, has a significant presence in Slough, offering cloud- and carrier-neutral data centre solutions. In July 2024, Digital Realty expanded its footprint by acquiring a highly connected colocation data centre in the Slough Trading Estate for $200 million, marking its entry into the west London submarket and complementing existing colocation capabilities in the City and Docklands. 

Other notable operators include VIRTUS Data Centres, which offers multiple facilities in Slough, such as LONDON9, LONDON10, and LONDON11, providing secure and flexible data centre solutions. Kao Data’s KLON-06 facility also contributes to Slough’s reputation as the UK’s data centre heartland, offering 16MW of Tier 3 equivalent colocation. 

Recent Developments and Investments

The demand for data centres in Slough continues to grow, driven by the increasing need for computing power and data storage. In response, property group SEGRO has been actively investing in the area. In January 2023, SEGRO acquired the Bath Road Shopping Park, a retail park adjacent to the Slough Trading Estate, for £120.25 million. The 11.4-acre site includes 10 retail warehouse units, with approximately one-third currently vacant, providing immediate opportunities for redevelopment. SEGRO plans to transform the site into modern warehousing suited to various users, including data centres, capitalising on the high demand and limited supply of industrial land in the Thames Valley.

Strategic Advantages of Slough

Several factors contribute to Slough’s attractiveness as a data centre hub:

• Proximity to London: Located just west of London, Slough offers easy access to the capital’s financial and business districts, making it an ideal location for data centres serving London-based clients.

• Connectivity: The town boasts robust fibre optic networks, ensuring seamless data transfer and low latency, crucial for businesses relying on real-time data processing. 

• Infrastructure: Slough’s well-developed infrastructure, including transportation links and utilities, supports the operational needs of data centres.

Future Growth Potential

The future of data centre development in Slough looks promising, with several trends and initiatives indicating continued growth:

• Artificial Intelligence (AI) and High-Density Workloads: As AI and machine learning applications become more prevalent, there is an increasing demand for data centres capable of supporting high-density workloads. Digital Realty’s investments in Slough are designed to cater to these needs, providing flexible and scalable infrastructure.

  
  

•  Sustainability Initiatives: With a growing emphasis on environmental responsibility, data centre operators in Slough are focusing on energy efficiency and sustainability. Investments in renewable energy sources and energy-efficient technologies are expected to play a significant role in future developments.

• Policy Support: The UK government’s recognition of data centres as part of the national critical infrastructure underscores the importance of the sector. This classification is likely to facilitate further investments and development in areas like Slough. 

Data Centre Dynamics

Slough has firmly established itself as a key player in the UK’s data centre landscape. Its strategic location, excellent connectivity, and supportive infrastructure have attracted substantial investments from leading data centre operators. Recent developments, such as SEGRO’s acquisition of the Bath Road Shopping Park and Digital Realty’s expansion, highlight the area’s ongoing appeal. As the demand for data processing and storage continues to rise, particularly with the advancement of AI technologies, Slough is well-positioned to capitalise on these trends and further solidify its status as a premier destination for data centre operations.