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Data centres to be expanded across UK as concerns mount

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Data centres to be expanded across UK as concerns mount


Zoe Kleinman & Krystina Shveda

Technology editor & BBC reporter@zsk
Getty Images A large white data centre building under construction in Hertfordshire, surrounded by green land, a river and housing estates further afield.Getty Images

Data centres, like this one Google is building in Hertfordshire, are becoming a more familiar sight across the UK

The number of data centres in the UK is set to increase by almost a fifth, according to figures shared with BBC News.

Data centres are giant warehouses full of powerful computers used to run digital services from movie streaming to online banking – there are currently an estimated 477 of them in the UK.

Construction researchers Barbour have analysed planning documents and say that number is set to jump by almost 100, as the growth in artificial intelligence (AI) increases the need for processing power.

The majority are due to be built in the next five years.

However, there are concerns about the huge amount of energy and water the new data centres will consume.

Some experts have warned it could drive up prices paid by consumers.

More than half of the new data centres would be in London and neighbouring counties.

Many are privately funded by US tech giants such as Google and Microsoft and major investment firms.

A further nine are planned in Wales, one in Scotland, five in Greater Manchester and a handful in other parts of the UK, the data shows.

While the new data centres are mostly due for completion by 2030, the biggest single one planned would come later – a £10-billion AI data centre in Blyth, near Newcastle, for the American private investment and wealth management company Blackstone Group.

It would involve building 10 giant buildings covering 540,000 square meters – the size of several large shopping centres – on the site of a former Blyth Power Station.

Works are set to begin in 2031 and last for more than three years.

Microsoft is planning four new data centres in the UK at a total cost of £330 million, with an estimated completion between 2027 and 2029 – two in the Leeds area, one near Newport in Wales, and a five-storey site in Acton, north west London.

And Google is building two data centres, totalling £450m, spread over 400,000 sq m in north east London in the Lee Valley water system.

By some analyses, the UK is already the third-largest nation for data centres behind the US and Germany.

The government has made clear it believes data centres are central to the UK’s economic future – designating them critical national infrastructure.

But there are concerns about their impact, including the potential knock-on effect on people’s energy bills.

It is not known what the energy consumption of the new centres will be as this data is not included in the planning applications, but US data suggests they are can be considerably more powerful than older ones.

Dr Sasha Luccioni, AI and climate lead at machine learning firm Hugging Face, explains that in the US “average citizens in places like Ohio are seeing their monthly bills go up by $20 (£15) because of data centres”.

She said the timeline for the new data centres in the UK was “aggressive” and called for “mechanisms for companies to pay the price for extra energy to power data centres – not consumers”.

According to the National System Operator, NESO, the projected growth of data centres in Great Britain could “add up to 71 TWh of electricity demand” in the next 25 years, which it says redoubles the need for clean power – such as offshore wind.

‘Fixated with sustainability’

There are also growing concerns about the environmental impact of these enormous buildings.

Many existing data centre plants require large quantities of water to prevent them from overheating – and most current owners do not share data about their water consumption.

Stephen Hone, chief executive of industry body the Data Centre Alliance, says “ensuring there is enough water and electricity powering data centres isn’t something the industry can solve on its own”.

But he insisted “data centres are fixated with becoming as sustainable as possible”, such as through dry-cooling methods.

Such promises of future solutions have failed to appease some.

In Potters Bar, Hertfordshire, residents are objecting to the construction of a £3.8bn cloud and AI centre on greenbelt land, describing the area as the “lungs” of their home.

And in Dublin there is currently a moratorium on the building of any new data centres because of the strain existing ones have placed on Ireland’s national electricity provider.

In 2023 they accounted for one fifth of the country’s energy demand.

Getty Images A technician in a high-vis jacket and hard hat kneels on the floor of a warehouse, fixing computer wiring on a series of racks towering above them.Getty Images

Data centres are home to powerful servers for things like streaming, online banking and AI tools

Last month, Anglian Water objected to plans for a 435 acre data centre site in North Lincolnshire. The developer says it aims to deploy “closed loop” cooling systems which would not place a strain on the water supply.

The planning documents suggest that 28 of the new data centres would be likely to be serviced by troubled Thames Water, including 14 more in Slough, which has already been described as having Europe’s largest cluster of the buildings.

The BBC understands Thames Water was talking to the government earlier this year about the challenge of water demand in relation to data centres and how it can be mitigated.

Water UK, the trade body for all water firms, said it “desperately” wants to supply the centres but “planning hurdles” need to be cleared more quickly.

Ten new reservoirs are being built in Lincolnshire, the West Midlands and south-east England.

A spokesperson for the UK Government said data centres were “essential” and an AI Energy Council had been established to make sure supply can meet demand, alongside £104bn in water infrastructure investment.

Additional reporting by Tommy Lumby

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Baroness Mone-linked PPE firm misses deadline to pay £122m

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Baroness Mone-linked PPE firm misses deadline to pay £122m


A company linked to Baroness Michelle Mone has failed to meet a deadline to repay £122m for breaching a Covid-19 personal protective equipment (PPE) contract.

The Department of Health and Social Care (DHSC) won a legal case earlier this month against PPE Medpro, a consortium led by Lady Mone’s husband Doug Barrowman, over claims the PPE did not comply with relevant healthcare standards.

A High Court judge ruled some of the company’s gowns they supplied were not “sterile”.

Health and Social Care Secretary Wes Streeting said the government would “pursue PPE Medpro with everything we’ve got to get these funds back” after the company failed to pay the damages cost by 16:00 BST on Wednesday.

PPE Medpro entered administration on 30 September, the day before the court judgement.

Streeting said: “At a time of national crisis, PPE Medpro sold the previous government substandard kit and pocketed taxpayers’ hard-earned cash.

“PPE Medpro has failed to meet the deadline to pay – they still owe us over £145 million, with interest now accruing daily.”

The firm was ordered to pay interest of £23.6m, which means the total sum owed is £145.6m.

According to the DHSC, this sum will accrue interest at 8% per year from Thursday until it is fully paid.

Forvis Mazars, one of the joint administrators appointed to take control of the business and recover money owed to creditors, declined to comment.

The National Crime Agency (NCA) previously said it was investigating the PPE Medpro case.

Mr Barrowman’s spokesman had said £83m of the government deal was paid to other companies but it is unclear whether they are being looked at by the NCA.

PPE Medpro was awarded a government contract in 2020 to supply PPE after being recommended by Baroness Mone.

However, after ordering 25 million sterile gowns from PPE Medpro, the government later launched legal action in 2022 through the High Court, claiming the gowns did not comply with the agreed contract.

PPE Medpro argued it had complied with the contract and that the gowns were sterile.

According to the company’s most recent accounts for the period ending 31 July, the business had £666,025 in net assets.

The document filed to Companies House also mentioned how the firm had used about £4.2m in reserves to fight the legal dispute.

Since the court judgement, Baroness Mone has faced cross-party calls for her to be stripped of her peerage.

However, peerages can only be removed by an act of Parliament.



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Big banks like JPMorgan Chase and Goldman Sachs are already using AI to hire fewer people

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Big banks like JPMorgan Chase and Goldman Sachs are already using AI to hire fewer people


Jamie Dimon, chief executive officer of JPMorgan Chase & Co., at the Institute of International Finance (IIF) during the annual meetings of the IMF and World Bank in Washington, DC, US, on Thursday, Oct. 24, 2024. 

Kent Nishimura | Bloomberg | Getty Images

The era of artificial intelligence on Wall Street, and its impact on workers, has begun.

Big banks including JPMorgan Chase and Goldman Sachs are unveiling plans to reimagine their businesses around AI, technology that allows for the mass production of knowledge work.

That means that even during a blockbuster year for Wall Street as trading and investment banking spins off billions of dollars in excess revenue — not typically a time the industry would be keeping a tight lid on headcount — the companies are hiring fewer people.

JPMorgan said Tuesday in its third-quarter earnings report that while profit jumped 12% from a year earlier to $14.4 billion, headcount rose by just 1%.

The bank’s managers have been told to avoid hiring people as JPMorgan deploys AI across its businesses, CFO Jeremy Barnum told analysts.

JPMorgan is the world’s biggest bank by market cap and a juggernaut across Main Street and Wall Street finance. Last month, CNBC was first to report about JPMorgan’s plans to inject AI into every client and employee experience and every behind-the-scenes process at the bank.

The bank has “a very strong bias against having the reflexive response to any given need to be to hire more people,” Barnum said Tuesday. The bank had 318,153 employees as of September.

JPMorgan CEO Jamie Dimon told Bloomberg this month that AI will eliminate some jobs, but that the company will retrain those impacted and that its overall headcount could grow.

‘Constrain headcount’

At rival investment bank Goldman Sachs, CEO David Solomon on Tuesday issued his own vision statement around how the company would reorganize itself around AI. Goldman is coming off a quarter where profit surged 37% to $4.1 billion.

“To fully benefit from the promise of AI, we need greater speed and agility in all facets of our operations,” Solomon told employees in a memo this week.

“This doesn’t just mean re-tooling our platforms,” he said. “It means taking a front-to-back view of how we organize our people, make decisions, and think about productivity and efficiency.”

The upshot for his workers: Goldman would “constrain headcount growth” and lay off a limited number of employees this year, Solomon said.

Goldman’s AI project will take years to implement and will be measured against goals including improving client experiences, higher profitability and productivity, and enriching employee experiences, according to the memo.

Even with these plans, which is first looking at reengineering processes like client onboarding and sales, Goldman’s overall headcount is rising this year, according to bank spokeswoman Jennifer Zuccarelli.

Tech inspired?

The comments around AI from the largest U.S. banks mirror those from tech giants including Amazon and Microsoft, whose leaders have told their workforces to brace for AI-related disruptions, including hiring freezes and layoffs.

Companies across sectors have become more blunt this year about the possible impacts of AI on employees as the technology’s underlying models becomes more capable and as investors reward businesses seen as ahead on AI.

In banking, the dominant thinking is that workers in operational roles, sometimes referred to as the back and middle office, are generally most exposed to job disruption from AI.

For instance, in May a JPMorgan executive told investors that operations and support staff would fall by at least 10% over the next five years, even while business volumes grew, thanks to AI.

At Goldman Sachs, Solomon seemed to warn the firm’s 48,300 employees that the next few years might be uncomfortable for some.

“We don’t take these decisions lightly, but this process is part of the long-term dynamism our shareholders, clients, and people expect of Goldman Sachs,” he said in the memo. “The firm has always been successful by not just adapting to change, but anticipating and embracing it.”



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Energy standing charge plans could backfire, MPs told

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Energy standing charge plans could backfire, MPs told


Kevin PeacheyCost of living correspondent and

Joshua NevettPolitical reporter

Getty Images A smart meter display on a table with a mug, £5 notes and a smartphone alongside it.Getty Images

Energy bosses have given a cool reception to regulator Ofgem’s plan to overhaul standing charges.

Under Ofgem’s plans announced in September, all suppliers in England, Scotland and Wales will offer at least one tariff in which standing charges are lower but customers then pay more for each unit of energy used.

But appearing before a committee of MPs, the chief executives and senior management of the UK’s biggest suppliers questioned the outcome of such a move.

Some called for the abolition of standing charges, while others say the proposals would make the issue worse for customers.

Rachel Fletcher, director of regulation and economics at the UK’s largest supplier Octopus Energy, said: “I think a lot of the concern about standing charges is just that people can’t afford to pay their bill.

“Where Ofgem is going is not going to solve any problems, it could make things worse.”

The bosses, giving evidence to the Energy Security and Net Zero Committee, pointed out that the major problem for some customers is that the cost of energy was unaffordable, and some could make the wrong choice when choosing tariffs with low standing charges.

Many called for a social tariff, in which those who are on low incomes receive a discount which is likely to be paid for by other billpayers.

Energy UK, which represents suppliers, recently called for “enduring” government support for those struggling to pay their bills.

Ministers have pointed to the extension of the Warm Home Discount to those on benefits, which knocks £150 off winter bills for one in five households. It is funded by a rise for all billpayers.

Ofgem’s price cap, which sets a maximum price per unit of energy for millions of people in England, Scotland and Wales who are on variable tariffs, rose by 2% in October.

The amount owed to energy suppliers by customers has already increased to a new record high of £4.4bn.

The data, which covers the period from April to June, shows that more than one million households have no arrangement to repay their debt, also a record high.

A bar chart titled “How the energy price cap has changed”, showing the energy price cap for a typical household on a price-capped, dual-fuel tariff paying by direct debit, from January 2022 to December 2025. The figure was £1,216 based on typical usage in January 2022. This rose to a high of £4,059 in January 2023, although the Energy Price Guarantee limited bills to £2,380 for a typical household between October 2022 and June 2023. Bills dropped £1,568 in July 2024, before rising slightly to £1,717 in October, £1,738 in January 2025, £1,849 a year from April, and falling slightly to £1,720 from July. From October to December, the figure will rise slightly again to £1,755. The source is Ofgem.

At the hearing, Simone Rossi, chief executive of EDF UK, was among the bosses who told MPs asking about the climate challenge that the price of electricity compared with a gas was a disincentive to customers wanting to go electric. It was also expensive in the UK compared with other countries.

On Tuesday, Energy Secretary Ed Miliband told the BBC shifting green levies from electricity bills to gas was one option being considered to lower energy costs for households.

But Miliband said no decisions had been made and insisted he would not change energy policy costs “in a way that damages the finances of ordinary people”.

While rebalancing energy policy costs could lower electricity bills, it could increase them for householders using gas boilers.

When asked if the rebalancing of energy bills was being reviewed by the UK government, Miliband said: “We’ve always said we will look at ways of lowering bills for people and that’s obviously one of the options.

“I just want to say on that, we will only ever do that in a way that’s fair and genuinely reduces bills for people.”

‘Fair’ bills

Policy costs are effectively government taxes used to fund environmental and social schemes, such as subsidies for renewables.

These costs made up about 16% of an electricity bill and 6% of a gas bill last year, according to research by the charity Nesta.

The Climate Change Committee has long recommended removing policy costs from electricity bills to help people feel the benefits of net-zero transition.

The government’s climate adviser said the move would make switching to electric technologies, such as heat pumps, cheaper and encourage take-up.

One option – backed by Energy UK – is shifting policy costs from electricity bills to gas.

Energy UK analysis shows that over 15 years, households using an air source heat pump, which is an electrically powered system, could save up to £7,000, compared to those with gas boilers, if energy bills were fully rebalanced.

But such a move would result in an increase in bills for households that use gas for heating.

When asked if that was one option the government was considering, Miliband said: “I’m not going to get into any of the detail of this.

“All I am saying is I’ve always said I’m cautious about this issue because fairness is my watchword.

“So if we can do it in a way that’s fair, that’s obviously something we’re seriously looking at.

“But no decisions have been made on that. I’m not going to do it in a way that damages the finances of ordinary people.”

At the committee, Chris O’Shea, chief executive of Centrica, said this would be a subsidy from the poor to the rich.



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