As AI workloads surge and facilities spring up from Northumberland to Wales, Lee Myall, CEO of Neos Networks, argues that Britain must radically re-engineer its two-decade-old core networks – or risk throttling its digital ambitions.

Over the past two decades, the UK’s core fibre networks have quietly powered the nation’s digital ambitions. Laid in the early 2000s, this backbone has served us well, supporting the rise of streaming to the first waves of cloud computing. But today, the explosive growth of AI and the next generation of data centre development are exposing the limits of legacy infrastructure.

New hubs, old networks

AI is inherently changing the way we use and move data. AI workloads are much more demanding and data-intensive than traditional applications, requiring higher bandwidth and lower latency than needed previously. As organisations across the public and private sectors continue to prioritise automation and innovation, the demand for high-performance compute is surging. This, in turn, is helping to fuel more data centre projects across the UK. In fact, according to the United Kingdom Data Centre Landscape 2025 report, the market is set to double by 2028.

But it’s not just about the number of new data centre sites. What’s also different now is the geography of this growth. While London and established hubs like Slough, Stockley Park, and Hemel Hempstead remain important, we are starting to see clear decentralisation. New data centre developments are springing up in regions such as Oxford, Wales, and Northumberland, which have not historically been core to the UK’s digital infrastructure. This shift is driven by land and power constraints in traditional hubs, the need to process data closer to end users, and the rise of edge computing.

Recent high-profile projects, such as the hyperscale development in Northumberland, also highlight the sector’s growing impact on regional power grids and local carbon targets. As data centre growth spreads to new regions, it’s important for network and energy strategies to evolve together to meet future requirements. For example, companies are already exploring solutions such as co-locating data centres next to renewable energy sites to ease the strain on the grid and boost efficiency. Ultimately, the UK needs less fragmented planning processes for energy and infrastructure.

The network under pressure

New decentralised data centres are putting greater demand on the UK’s existing network infrastructure. But, much of this infrastructure still depends on core fibre routes installed decades ago, designed to legacy performance criteria. As a result, these routes now face diminished capacity and availability, along with some degradation over time. As development spreads beyond traditional London-centric hubs, new regions face intense pressure on bandwidth, latency, and resilience, and legacy networks are struggling to keep up.

Edge computing adds another layer of complexity. These smaller, distributed, yet still substantial facilities will be located in towns and cities beyond the major data centre hubs, and are important for supporting AI inference, IoT, and real-time services. Each new site becomes a node that needs robust, high-quality connectivity, further increasing the scale and intricacy of the network challenge.

The case for evolving core networks

However, evolving the UK’s core networks means more than just incremental upgrades. We need a full rethink of how we design, build, and operate our national backbone. This means targeted investment in new long-haul fibre routes to connect emerging regions, improving local and regional links, and building a more distributed, resilient core that can flex to support both hyperscale facilities and a growing edge footprint. This approach will help ensure that digital transformation, and the benefits of AI, are accessible across all regions of the UK.

The Government’s recognition of data centres as critical national infrastructure is a positive step, but this must be matched by a genuine commitment to upgrading the networks that support them. The same applies to the AI Opportunities Action Plan, which sets out the UK’s ambitions for AI-driven innovation and growth is important. However, these goals will only be achieved if the underlying infrastructure is fit for purpose. A coordinated approach between public and private sectors will be key to keeping the UK competitive as a destination for digital investment.

Collaboration is key

After years of focus on data centres, investors are now turning their attention back to the core networks that connect them. Even if only half the data centre capacity currently in the pipeline is realised, it will require a significant uplift in network investment. The government’s role should be to clear the runway – reducing bureaucracy, supporting power generation, and ensuring a level playing field for all network providers. Overly complex regulation and anti-competitive practices, such as incumbent operators deterring alternative investment, must be tackled head-on.

Delivering the next generation of core infrastructure will require genuine collaboration across the industry. Incumbents and alternative network providers alike need to work together, while regulators must create the conditions for continued investment and innovation. In future, we’re also likely to see infrastructure projects spanning multiple sectors, with digital infrastructure developed alongside transport and energy networks.

The UK has a strong track record of digital leadership. By evolving our core networks in step with data centre growth, we can ensure that AI ambitions are realised in every region, while strengthening our position as a compelling destination for international data flows and investment.