"The glorious visit of US President Donald Trump to the British Isles last week came with promises of thousands of precious GPUs, with Nscale, Microsoft, Google, and more teaming up to build a giant datacenter within walking distance of my house. But is the Tech Prosperity deal really a portal to a bright future or will it suck us in?"
"Even before Nvidia's Jensen Huang touched down in the UK, real estate expert CBRE was reporting that DC construction wasn't aligned with demand; some investors were taking a "build it and they will come" approach. CBRE pointed out in a January forecast that such an approach is sensitive to risks from the general economy - it urged onlookers to consider the risk of tenant flight in a recession and the need to balance business ambitions with rising energy costs and planning limitations."
"As for the coming growth for hyperscalers, it will come partly at the expense of on-prem. Except for our large financial sector, enterprise customers running their own datacenters are in decline. There are just so many risks and hassles. Do you know whether your cabinets in five years are going need 10 kW or 100? Nvidia threatens to roll out 600 kW racks within 18 months and a megawatt after that."
UK power is bitterly expensive, the energy minister often frames electricity as a negative, planning systems are lethargic, and the grid has a connections backlog running to 2039. Major technology firms including Google, Nvidia, Microsoft, Oracle, and Nscale are committing large capital to build hyperscale datacenters to serve rising GPU and AI demand. Commercial real estate firms warn that some construction is not aligned with demand and that tenant flight, recession, and rising energy costs pose material risks. Hyperscaler growth will displace on-prem datacenters, while rapidly increasing rack power needs and cooling choices complicate long-term infrastructure bets and raise bubble concerns.
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