The UK datacentre market is experiencing challenges related to sustainability due to power supply issues and a lack of available development sites. Recent data from CBRE revealed that vacancy rates in major FLAPD cities have reached historic lows, with London being the only region to see new datacentre capacity in mid-2024. The new Labour government is working to reduce obstacles in planning permissions to facilitate further developments, signaling the economic importance they place on the datacentre market's growth and overridden previous government restrictions on building on protected land.
The new Labour government has acknowledged the need for increased datacentre capacity, moving to lower planning permission barriers hindering development, especially in London.
Real estate consultancy CBRE highlighted that vacancy rates in key European cities hit record lows, underscoring the demand-supply imbalance in the datacentre market.
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