Marlon Oliver, SVP EMEA at Flexera, argues that the next generation of large-scale data centre investments will only deliver long-term value if every pound of spend is clearly linked to utilisation, outcomes and emissions.

BlackRock’s £500 million commitment to UK data centres is a sign of growing confidence in the country’s digital infrastructure. There is no question that demand for cloud services, data storage, and artificial intelligence is accelerating. The scale of investment is exciting.

However, businesses need to scale carefully if they want it to work long-term, as when digital infrastructure grows too quickly, costs can quickly spiral, and resources can go unused. There’s also an environmental implication that businesses need to plan for – especially for businesses operating in the EU who will be impacted by the 2026 CSRD reporting requirements.

Of course, investing for growth is not only necessary – it’s strategic. While costs are often viewed critically, they can be powerful enablers when clearly linked to business value and impact. Every pound spent must serve a purpose, driving measurable outcomes that support our long-term vision.

Overcoming the challenge of overspending 

Managing cloud and infrastructure spend is often one of the biggest challenges for organisations today. In Flexera’s 2025 State of the Cloud report, 84% of respondents said cloud spend is their top concern, with nearly a third of organisations already spending more than $12 million annually on public cloud services. With budgets exceeding limits by an average of 17%, there is a clear need for better visibility and control.

Overspending often happens when organisations build more capacity than they actually need in the hope of keeping up with demand. While this may seem like forward-looking planning, surplus capacity can be expensive and does not always deliver proportional value.

And while cost control will always be a priority, spending is not always a bad thing. When the value gained is greater than the spend itself, this is the mindset that turns investment into real growth.

Instead, taking a proactive, data-driven approach allows leaders to anticipate demand and allocate resources more strategically. By closely tracking resources and optimising utilisation, organisations can make sure every pound they invest delivers value.

Governance and operational oversight 

Quickly growing infrastructure brings its own challenges. Many organisations have a multi-cloud and hybrid setup, which often involves several different suppliers, which can become hard to manage without clear governance rules. These include policies on who can provide resources, how costs are tracked, and how workloads are distributed, which means managing these multiple environments becomes difficult and more complex. Resources can easily be duplicated without clear oversight.

The bigger issue isn’t just rushed decisions; its decisions being made in isolation. Setting up one clear decision-making group that brings IT, finance, and leadership together can avoid conflicting and mixed priorities. It creates a single, shared view of spend and usage, and helps ensure resources are used where they have the most impact.

FinOps teams continue to play a growing role in this landscape. In 2025, the number of organisations using, or planning to use, a FinOps team rose eight percentage points year-on-year, according to a recent industry report. These teams provide the financial oversight and analytical insight needed to manage cloud and infrastructure costs effectively. Bringing ITAM and FinOps into the same process gives leaders real-time data and a more accurate overview of usage before they invest further.

Generative AI is a good example of why this joint approach can be effective. The same industry report found that 72% of organisations are now using generative AI services in some way. These workloads add significant compute and storage demand, which can quickly drive-up cloud costs and energy consumption if not monitored. Organisations with strong governance and FinOps processes are better equipped to measure the impact of AI adoption and keep both budgets and sustainability goals on track.

Environmental responsibility matters 

As the number of data centres grows, so does the energy usage and their environmental footprint. It is not enough for organisations to claim sustainability ambitions. With regulations like the EU’s CSRD coming into effect from 2026, businesses will need to measure, track, and report their IT-related emissions in more detail, including cloud usage and data centre operations.

This is where having solid data and governance processes in place becomes important. Organisations need visibility into which assets they have, how efficiently they’re being used, and what their overall energy footprint looks like in order to stay ahead of compliance requirements and get the full picture of their impact.

ITAM and FinOps can help by cutting back unused resources, adjusting cloud capacity to match demand, and tracking emissions against sustainability goals. Some practical ways for businesses to save money and cut emissions are by running only the cloud services they actually need, switching off servers when they’re not in use, and replacing old equipment at the right time so it uses less energy.

Taking a targeted approach to sustainability helps organisations show they are serious about their commitments, rather than just ticking boxes. It also makes it easier to answer questions from regulators, partners, and the public when it comes down to it.

Looking ahead 

The UK’s data centre market is entering a pivotal phase. Investment at this scale presents an opportunity, but it also raises expectations for responsible growth. Organisations that embed strong governance, financial oversight, and sustainability into their planning will be better placed to benefit from these investments. Those that do not risk inefficiency, wasted spend, and reputational damage over time.

Ultimately, by investing in digital infrastructure, organisations can make more careful, informed decisions that balance growth, cost, and sustainability. The approach of combining solid ITAM and FinOps practices with transparent environmental reporting and cross-functional collaboration can ensure organisations that their data centre investments deliver long-term value and accountability. With the UK data centre market continuing to expand, organisations also have a unique opportunity to build infrastructure that is both scalable and sustainable from the outset.