In a significant pivot, plans for office space in Salford are being replaced by a £250 million data centre.
- The Peel Group, a prominent property developer, initially secured approval for a mixed-use development at the site.
- However, new plans from DLD (Salford) Ltd propose demolishing existing structures in favour of a data centre.
- DLD (Salford) Ltd, a newcomer led by David Jason and Paul Velleman, has registered multiple data-related companies.
- Data centres are gaining governmental attention, designated as ‘critical national infrastructure’ to boost the UK economy.
Plans to construct additional office space in Salford have been abandoned in favour of a new £250 million data centre. This decision reflects a strategic shift driven by increased demand for cloud computing infrastructure. The initial approval was granted to Peel Group for a development that included spaces for storage, distribution, and research on a 6.6-acre site near Salford Community Stadium.
Shortly after the approval, a fresh proposal emerged from DLD (Salford) Ltd, suggesting the demolition of current buildings to construct a data centre instead. DLD (Salford) Ltd, which was recently established, is spearheading this development claiming it will bring a substantial investment into the area. Despite the company’s recent formation, its directors have created several similar entities, hinting at potential further data centre expansions in the Manchester region.
DLD (Salford) Ltd argues that the data centre will sustain site viability long-term, providing critical infrastructure for supporting data and high-tech industries. The proposal aligns with broader trends, as seen with concurrent major data centre projects elsewhere in the UK. Evidence of this includes a £350 million facility already under construction in Stockport and plans for a £4 billion centre in Hertfordshire.
The UK government is actively encouraging these developments, recently labelling data centres as ‘critical national infrastructure’. This new status, a first in nearly ten years, elevates their importance akin to essential services like water and energy. This designation aims to drive investment, recognising data centres as vital for future industry needs.
The transition from office space to data centre development in Salford exemplifies a broader national focus on expanding cloud infrastructure.