AI Ambitions: Kao Data Breaks Ground on Fourth UK Data Center

Kao Data, a UK-based colocation provider, has begun construction of its new £350 million ($465 million) data center in Stockport, Greater Manchester.

Attending the groundbreaking ceremony today, Greater Manchester Mayor Andy Burnham said the 40 MW facility will help support the development of the region’s AI cluster and promote the North West of England as a leading hub for tech and innovation.

Burnham was joined by the Leader of Stockport Council, Counsellor Mark Hunter, and Kao Data executives, as work began to demolish the existing buildings on the brownfield site in preparation for the new data center.

“It’s amazing to be here on site today and to have the opportunity of welcoming Kao to Stockport,” Hunter said. “It’s a massive investment in our local economy. We’re delighted that they’ve chosen Stockport as the location for this new initiative, and it's going to be a fantastic boost for the wider community.”

An artist’s impression of the Kao Data facility in Greater Manchester (Image: Kao Data)

Energy-Efficient Facility

Kao Data said the Greater Manchester data center has been designed to be “one of the world’s most energy-efficient facilities” and powered by 100% renewable energy.

The 25,900 sq.m development will be built to handle high-performance workloads and meet the demands of AI hardware. Once operational, it will be the biggest data center in the North West of England, with capacity for more than 4,000 racks.

Related:UK Labels Data Centers as Critical Infrastructure – But What Will This Mean for the Industry?

It will be Kao Data’s fourth facility in the UK, joining existing locations in Slough, Northold, and the company’s flagship campus in Harlow, 30 miles north of London.

The Stockport facility is expected to go online in 2026, and Kao Data’s chief commercial officer Spencer Lamb said the company is already in conversation with prospective tenants.

Critical Infrastructure

The groundbreaking ceremony comes less than a month after the UK government announced that data centers were to be designated ‘critical national infrastructure’ – a move that’s expected to strengthen the security and resilience of the country’s digital economy. 

According to Burnham, Greater Manchester is well-placed to support the UK’s increased reliance on digital infrastructure services.

“We have very high-profile partners in the city region,” the mayor told Data Center Knowledge, citing Greater Manchester Police’s role in safeguarding critical infrastructure and GCHQ’s local presence for cybersecurity.

He added: “From a Greater Manchester perspective, we’ve been the fastest-growing digital and tech hub in Europe. But if we want that to continue, we need to see the emergence of facilities like this.”

Related:IBM Opens Europe’s First Quantum Data Center in Germany

Kao Data chief commercial officer Spencer Lamb (Image: James Walker)

Site Selection

Speaking at the construction kickoff event today, Lamb said the Stockport site – a former concrete works – aligns with the company’s sustainability goals.

“The UK is constrained in size, and therefore land is at a premium,” he said. “Our view is that we don't need to build data centers on greenbelt land, but that we should be repurposing facilities like this for data sense developments in the country.”

Lamb said the new facility in the North West of England will also play an important role in helping diversify the nation’s data infrastructure.

“The data center industry [in the UK] has been accidental in its planning over the last 10 to 15 years, and we’ve ended up in a situation where everything is west of London supporting the whole of the country,” he said.

“So, from a critical national infrastructure perspective, there’s a single point of failure. We believe the North West is the right location to have that resilience.”

Kao Data said the new facility will bring new employment opportunities to the area, creating both direct and indirect jobs across construction, engineering, and operations.