The Data Centre Dilemma: How AI's Hunger for Power Is Reshaping British Towns

The UK government wants three times as many data centres. In Slough, locals are already living next to metal-clad giants that drink water and burn electricity at a scale that rivals whole neighbourhoods.

AI2Day NewsdeskAI-assistedPublished Updated Editor: Lee Brown4 min read
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Illustration made with AI. Not a photograph of the events described.
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Key points

  • The UK government plans to triple the number of data centres in Britain to support growing demand from artificial intelligence.
  • Data centres, the large warehouse-like buildings that house the computers powering AI and the internet, require enormous amounts of electricity and water to run.
  • Slough, a town roughly 20 miles west of London, already hosts one of the densest concentrations of data centres in Europe.
  • Land and power earmarked for new data centres could otherwise support housing and local water supplies.
  • Europe's energy and water pressures, sharpened by hotter summers, make the expansion debate increasingly urgent.

Slough on a Monday morning in a heatwave looks like two towns sharing one postcode. There are familiar high-street businesses: a car-repair garage, a fishing-tackle shop. Looming over them are buildings the size of aircraft hangars clad in grey and silver metal, cooling fans humming loud enough to hear from the pavement.

Those giants are data centres: vast warehouses packed with computer servers, the machines that store and process almost everything we do online. Every time you stream a video or ask an AI chatbot a question, a server does the work. The AI boom has sent demand for server space soaring, because the models behind tools like ChatGPT need far more computing power than a standard website ever did. We first picked up the community side of this story on 25 July 2026, when Little Rock residents pushed back against two facilities of similar scale.

Why does this matter to ordinary people?

Data centres need two things in huge quantities: electricity and water. Electricity keeps the computers running; water prevents them overheating. When a new centre moves into an area, it competes for the same grid connections and reservoir supplies that homes and hospitals depend on. The Guardian, which sent a reporter to Slough's trading estate, found the same basic question from residents: if the power and land go to servers, what's left for people?

What is the government proposing?

Whitehall, the part of the British civil service that advises ministers, wants to triple the UK's total number of data centres. The goal is to make Britain a leading destination for technology investment and to keep pace with the United States and China in the global AI race.

That ambition isn't a small ask. Tripling data centres means tripling the land, the grid upgrades and the water connections they require. Our earlier story found that Ofgem is already pushing operators to pay upfront fees just to join the grid queue, a sign of how stretched capacity already is.

What a large data centre needs Rough scale
Electricity per year Enough for a small town
Water per year Millions of litres for cooling
Land footprint Often 10 to 30 acres per campus
Planning approval time Typically 2 to 5 years
Lifespan before major upgrade 10 to 20 years

What happens next?

Local councils, energy network operators and water companies all face the same squeeze: more demand, fixed infrastructure, and summers that keep getting hotter. One possible escape route: compact, portable computing units that don't rely on centralised water cooling. We covered one such design on 4 August 2026, though it's nowhere near the scale governments are planning.

For anyone living near a proposed site, that means attending planning consultations and asking direct questions about water use and grid capacity. The AI tools we use daily have a physical footprint somewhere, and someone nearby is living with it.

Common questions

Can data centres be made greener?

Can data centres reduce their water use?

Some operators are switching from water-based cooling to air cooling or experimenting with recycled water, but neither approach fully solves the problem at the scale governments are planning.

Will this affect my electricity bills?

More demand on the national grid can push prices up, though the effect depends on how quickly the grid adds new renewable generation to keep pace.

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