Kao Data starts work on £350m Greater Manchester Data Centre

Kao Data has commenced construction of its new £350 million data centre in Stockport, Greater Manchester. The news comes as data centres are designated Critical National Infrastructure (CNI) by the UK Government in the first move of its kind since 2015.

Greater Manchester Mayor Andy Burnham and the Leader of Stockport Council, Cllr Mark Hunter, were among those present as work began to demolish existing buildings on the ex-industrial site in preparation for the new data centre, which is expected to be powering customers’ workloads by 2026.

The state-of-the-art facility will further cement Manchester's growing reputation as a major hub for UK digital infrastructure and technology innovation, and ties into the GMCA’s Greater Manchester Digital Blueprint by extending the region’s world-class digital infrastructure.

Upon completion, the data centre will deliver unrivalled computing capabilities to regional and international organisations, providing them with one of Europe’s most advanced and sustainable hosting environments, powered by 100% certified renewable energy.

The new data centre is also expected to bring numerous high-net-worth employment opportunities to the area, creating both direct and indirect jobs across construction, engineering, and operations, while attracting further tech professionals to the region.

Once operational this facility provides the vital capacity needed for tech businesses to scale and grow, supporting more jobs in the digital sector.

Andy Burnham said: “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.”

“This data centre can also raise aspirations and opportunities for young people, providing a window on the GM economy that they’ve never had before,” he continued. Kao Data’s plans to engage with schools and colleges and support technical career pathways for local

students through the Greater Manchester Baccalaureate is exciting, and I’m looking forward to seeing those plans become reality.”

Doug Loewe, CEO, Kao Data, said: "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. The city region is becoming an increasingly strategic location for digital infrastructure investment, and 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.”

Cllr Mark Hunter said: “It’s 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.

“It’s also a testament to all of the good work and investment in the borough that the Council has led on – with good support from Andy Burnham as GM Mayor – that digital and tech businesses recognise the potential of Stockport as a key location for their growth and further success.”

By 2026, Greater Manchester is expected to emerge as one of the UK and Europe’s largest computing and technology hubs, benefitting from a strategic location that includes access to cutting-edge connectivity, an industrialised power grid, a talented, tech-savvy workforce and well-established AI Start-up and research communities. Kao Data’s facility is set to be a cornerstone of this transformation, helping businesses across the region stay competitive on the global stage and attract the world's most pioneering tech players to the North West.