Kao Data begins construction of £350m Manchester data centre

Developer and operator of data centres, Kao Data, has announced the commencement of work on its £350 million ($459 million) data centre in Stockport, Greater Manchester.

Kao Data said the new facility, scheduled to be operational by 2026, is set to become a cornerstone of the region’s digital infrastructure. This follows the UK Government’s designation of data centres as Critical National Infrastructure (CNI).

The data centre, located on an ex-industrial site, intends to further strengthen Manchester’s position as a major hub for digital infrastructure. The initiative aligns with the Greater Manchester Combined Authority’s (GMCA) Digital Blueprint, which seeks to elevate the region’s digital capabilities.

“As we continue our mission to ensure world-class digital infrastructure for the region, this new data centre will play a pivotal part in our fast-growing and diverse technology ecosystem, reinforcing our position as a global leader in AI and data centre capacity,” said Andy Burnham, Mayor of Greater Manchester.

Mayor Burnham also said the data centre ‘can also raise aspirations and opportunities for young people, providing a window on the GM economy that they have never had before’.

Advanced Computing Capabilities and Sustainability

Once completed, Kao Data’s Stockport facility will provide advanced computing capabilities to regional and international organisations. Kao Data said the data centre is set to become one of Europe’s most advanced and sustainable hosting environments, powered by renewable energy.

“Beginning the development stage of our new data centre marks an important milestone, not only for Kao Data, but for technology in Stockport and Greater Manchester. Our new facility – the largest and most sustainable in the north of England – further reinforces Greater Manchester’s position as a digital and economic powerhouse,” said Doug Loewe, CEO at Kao Data.

Kao Data expects the project to bring numerous high-value employment opportunities to the region, creating jobs across construction, engineering, and operations, while attracting top tech talent to Greater Manchester.

“This facility provides the vital capacity needed for tech businesses to scale and grow, supporting more jobs in the digital sector,” added Loewe.

Leader of Stockport Council, Cllr Mark Hunter, agreed with this sentiment.

“It is a fantastic opportunity for Stockport to attract businesses like Kao Data to come and be based in the borough, with all the extra job opportunities and support for growing our local economy further that comes with them,” said Cllr Hunter.

Looking Ahead

Kao Data expressed confidence that, by 2026, Greater Manchester is projected to become one of the UK and Europe’s key computing and technology hubs. The region’s access to advanced connectivity, a skilled workforce, and an expanding AI and tech sector positions it well for growth. Kao Data’s new facility is expected to contribute to this development, providing the infrastructure needed for tech businesses to remain competitive and attract technology companies to the North West.

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