Understanding Slough’s data centre cluster and its economic impact

Kao Data’s report highlights Slough’s growth as a major data centre hub supporting the UK’s digital infrastructure.

Kao Data, a developer of advanced computing data centres, has published a report on Slough’s growth into a major data centre hub and the UK’s emerging AI Growth Zone (AIGZ). With over 675 MW of hyperscale data capacity, Slough contributes significantly to regional employment and the local economy, generating upwards of 14,000 jobs and over £30 million in business rates annually.

Released to coincide with the UK government's AI Opportunities Action Plan anniversary, the report highlights the role data centres play in supporting AI initiatives and regional economic development. It highlights Slough’s role as an AI Growth Zone, operating at around 1 GW of capacity and providing a reference point for regional economic development.

This incisive document challenges the misconception surrounding data centres as having minimal economic effect, highlighting how these centres have filled the employment crater left by declining local manufacturing industries. Approximately 8,000 construction jobs were created between 2010 and 2025, with numerous skilled roles in engineering, facilities management, and legal services adding to this positive trend.

Key insights from the report include:

  • Slough is home to over 30 functioning data centres, with a total capacity of 1GW, including significant hyperscale facilities.
  • An employment ecosystem supports 14,000 jobs, including direct, indirect, and induced roles.
  • Annual contributions of more than £30 million are made via local business rates.
  • The commitment to sustainability is evident, with 95% of data centre electricity sourced from 100% renewable procurement.
  • The Simplified Planning Zone (SPZ) framework accrued £18 million for local councils between 2014 and 2024.
  • A strategic location with nearly 2.7 million experienced individuals in engineering and telecommunications resides within an hour's commute.

The momentum Slough demonstrates highlights the impact of a strong infrastructure strategy, supported by clear planning, reliable energy, and a skilled workforce.

The urgency to replicate this model across the nation is evident, particularly with Slough and West London's electrical grid constraints clearly acknowledged. As Critical National Infrastructure, data centres necessitate a broader distribution across the UK to increase regional economies while diversifying security protocols.

Slough illustrates what can be achieved with coordinated local governance and planning, providing a reference for developing similar capabilities in regions like Greater Manchester and supporting a resilient UK AI and digital ecosystem.

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