London’s data centre boom ‘could push 10,000 households into poverty’, Sadiq Khan warned

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With 99 data centres already built, London accounts for more than 80 per cent of the UK’s data centre capacity

London’s data centre boom could push 10,000 households into fuel poverty and place unprecedented strain on water resources, experts have warned.

The buildings – secure, warehouse-like facilities that house IT infrastructure such as computing, storage, and networking systems – are seen as critical for helping prop up the capital’s economy and public services.

They are disproportionately placed in and around London due to their proximity to the financial hub in the City of London, as well as the “snowball effect”, where new data centres are built near existing ones in “clusters”.

With 99 data centres already built, London accounts for more than 80 per cent of the UK’s data centre capacity, with another 26 new facilities currently planned or progressing through the system.

Oliver Hayes, head of campaigns at Global Action Plan, has warned that high-growth data centre projections could force 77,000 British households into fuel poverty in future – including 10,000 in the capital – due to increased energy bills.

Research from the climate campaign group reveals that added demand on the UK’s energy systems from new data centres could add an average of £88 to the average household energy bill.

“It will also further impoverish the households already in fuel poverty,” Mr Hayes told the London Assembly Environment Committee last week.

“This is an enormous issue that is not being adequately considered. Early analysis of that at a regional level suggests that in London that figure would be about 10,000 additional households.”

Zack Polanski, the leader of the Green Party and London Assembly Member who sits on the committee, told the Local Democracy Reporting Service (LDRS): “We need to slam the brakes on the rampant building of new data centres.

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