Neos Networks has revealed that a significant majority of UK data centre operators — 82% — have postponed site builds or expansion plans due to limited fibre availability. Furthermore, 95% of these operators indicated that access to new high-capacity fibre networks will now be a key factor influencing their future expansion decisions.
The findings emerge from recent research conducted in partnership with Censuswide, which surveyed data centre operators, enterprise IT leaders, and local government officials. Despite strong momentum from government initiatives and enterprise investments in data centres and artificial intelligence (AI), the study highlights fibre infrastructure as the primary bottleneck threatening the UK’s digital ambitions. The industry consensus is clear: substantial investment in new, high-capacity fibre backbone networks is essential to sustain growth.
The survey results underscore the critical role of fibre in underpinning the UK’s AI infrastructure. A staggering 89% of local government stakeholders reported that fibre gaps have caused delays in regional infrastructure projects. Nearly half of enterprises — 45% — see fibre as the main obstacle to advancing AI and digital infrastructure, while 46% of local authorities expressed concerns that their regions’ fibre networks are not yet fully equipped to support AI data centres. Alarmingly, 16% of companies doubt the UK’s current fibre infrastructure can support their AI ambitions.
Lee Myall, CEO of Neos Networks, emphasised that while significant investment has been made in last-mile fibre access over the past decade, the core fibre networks across the country have received comparatively little attention. He warned that without strengthening these backbone networks, workloads will be unable to move efficiently between data centres, hindering AI training and stalling investments. Myall stressed that the UK has the demand, regional readiness, and ambition to lead in AI, but addressing fibre infrastructure gaps is crucial to unlocking this potential and avoiding missing out on a major economic opportunity.
The research also highlights how government policies are shaping industry strategies. With initiatives like AI Growth Zones outlined in the AI Opportunities Action Plan, 96% of data centre operators say these zones influence their expansion and site selection decisions, with 44% citing them as a strong motivator. Similarly, 68% of enterprises view AI Growth Zones as a significant driver of infrastructure planning. There is a noticeable shift towards regional hubs outside London, with 39% of data centre operators now expecting increased investment in the North of England and Midlands, compared to 23% in Greater London.
As data centre deployment becomes more dispersed, nearly all operators (97%) anticipate that up to half of UK compute capacity will be located at the network edge by 2030, underscoring the need for resilient, high-performance fibre networks across all regions. Despite this momentum, concerns persist, with 41% of data centre leaders feeling the UK’s fibre networks are only partially prepared to support regional AI workloads. Additionally, over 70% of enterprises believe the UK’s attractiveness for data centre investment needs improvement or is lagging.
The study concludes that new fibre backbone projects are vital for unlocking growth and confidence in the UK’s AI ecosystem. Nearly all respondents — 95% of data centre operators, 96% of enterprises, and 96% of local authorities — agree that investing in high-capacity fibre corridors into underserved areas would significantly boost AI and data centre development. Over half of local authorities (53%) see such projects as transformative for their regions.
Myall reaffirmed Neos Networks’ commitment to building the necessary fibre foundations, emphasising that AI is no longer a future goal but a present-day reality reshaping operations across sectors. He stressed that continued investment in fibre infrastructure is essential for the UK to compete, lead, and thrive in the global AI race.
