F E A T U R E scenario. By 2030, approximately 70 % of the total demand for data centre capacity will be for facilities capable of supporting advanced AI workloads.

Such growth puts stress on traditional air-cooling solutions, as AI workloads often involve massive computational power that generates significant heat. Liquid cooling systems will therefore become a more prominent choice through the remainder of 2025 and beyond, delivering the performance and energy efficiency AI workloads demand.

While liquid cooling can be highly effective, implementing it requires meticulous planning and careful management of potential risks, such as leaks that can lead to hardware damage. Alongside cooling, operators must address the growing need for lowlatency and high-bandwidth networks. AI applications often rely on real-time data processing, meaning that even small delays can undermine performance.

As Edge Computing deployments increase, data centre location and robust network infrastructure become critical. Proactive operators are leveraging advanced networking solutions, such as software-defined networking( SDN) and direct connectivity options, to reduce latency and improve reliability for AI customers.

How is the relationship between colocation providers and their customers evolving in response to regulatory changes and industry demands?

Nowhere is this more evident than in heavily-regulated sectors like finance. Businesses in these fields face intensifying regulatory scrutiny and must maintain continuous compliance. As these relationships blossom, colocation providers are likely to become trusted proactive partners rather than transactional service vendors.

Implementation of the Digital Operational Resilience Act( DORA) in January this year is a good example of a regulatory trigger for change. The new EU regulation is designed to fortify financial organisations against cyberattacks and is likely to usher in stronger operational resilience for the financial services sector and their ICT partners including data centre operators. As such, collaborative relationships with

financial services will deepen, moving into transparent risk assessments and robust incident response measures.

Through the rest of year and looking towards the future, the industry will also see greater investment in specialised compliance teams and cutting-edge security tools to meet evolving standards. One distinct benefit of this greater regulatory focus is increased trust in data centres among businesses and end-users who depend on safe, stable digital environments.

What impact does the UK government’ s designation of data centres as critical national infrastructure have on the industry and its future growth?

The recent government designation of UK data centres as critical national infrastructure also marks the beginning of a new era for the industry, reflecting the country’ s increasing reliance on digital services. This classification ensures facilities

receive enhanced governmental support during events such as cyber-attacks, extreme weather, or IT failures, in order to minimise disruptions to crucial services.

Despite this recognition, research conducted by Telehouse shows that 67 %

Colocation providers and their customers have traditionally operated on a transactional basis, with clients purchasing power, space and cooling.

Yet the rise of hyperscalers and extensive cloud services has encouraged customers to seek additional capabilities such as regulatory compliance support and real-time infrastructure monitoring. This shift from a purely transactional model to a more collaborative partnership is accelerating as we move through the year and organisations recognise the value in drawing on the expertise of data centre operators.

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