The rapid expansion of UK data centres is creating investment opportunities beyond the buildings themselves. Electricity infrastructure, once treated largely as a supporting element of development, is becoming an increasingly important consideration in how projects are financed and structured.
As power requirements increase and grid connections become more complex, developers are facing substantial capital commitments for substations, private networks, on-site generation and related infrastructure. These assets can also require specialist expertise to develop, operate and maintain over the life of a facility.
This is bringing utilities, energy developers and infrastructure investors more directly into the digital-infrastructure market. The commercial question is increasingly about who should finance and own the power infrastructure serving a data centre, and how the associated risks and returns should be allocated.
Power infrastructure is becoming a distinct investment opportunity
Traditionally, data-centre development has been assessed primarily through the value of the site, building, customer commitments and operating infrastructure. Power availability has been critical, but the electricity assets supporting a project have not always been considered as a separate investment proposition.
That distinction is beginning to change.
A large data-centre campus may require significant investment in dedicated electrical infrastructure, including high-voltage connections, distribution networks, generation and battery storage. Depending on the project, these assets may be owned by the developer, a utility, a specialist energy provider or a joint venture.
Different ownership models have different implications for development capital, long-term operating costs and control over critical infrastructure.
For some developers, retaining ownership may provide greater control and flexibility. Others may prefer to preserve capital for the data-centre development itself, relying on specialist partners to finance and operate the energy assets.
The appropriate structure depends on the commercial and technical requirements of the project, but the choice is increasingly relevant to its overall investment case.
UK transactions are already showing different approaches
The development of Tritax Big Box's Manor Farm data-centre project near Heathrow provides a useful example of how power infrastructure can influence transaction structure.
In January 2025, Tritax announced the acquisition of a 74-acre site alongside a 50% interest in a joint venture with EDF Renewables. The joint venture holds the relevant grid connection rights and is intended to own the associated power infrastructure, while Tritax retains ownership of the land and data-centre development.
The structure supports the proposed delivery of up to 147MW of power, with the initial 107MW data-centre phase receiving planning consent in 2026.
This arrangement demonstrates how energy infrastructure and digital real estate can be developed through separate but commercially connected ownership interests. It also illustrates the role that an established energy partner can play in securing and delivering power for a major development.
A different model is evident in SSE Energy Solutions' existing private electricity networks. SSE owns and operates energy infrastructure at Slough Trading Estate, serving more than 30 data centres, and operates a private network at Imperial Park in Newport.
These arrangements show how specialist utility ownership can support data-centre development without requiring each operator to own the wider electrical network serving its facility.
Institutional capital is entering the power infrastructure market
Recent investment activity suggests that specialist data-centre power infrastructure is also becoming an increasingly attractive proposition for institutional capital.
In August 2026, Partners Group announced an agreement to acquire a majority stake in UK-headquartered AVK Power Solutions, with plans to invest more than US$1 billion of equity, alongside debt financing, to support its expansion.
The investment is intended to develop AVK into a broader energy-infrastructure platform capable of funding, owning and operating on-site power assets for data-centre customers.
AVK subsequently launched AVK Capital, offering an Energy-as-a-Service model under which customers can secure power through long-term agreements rather than funding the entire infrastructure investment themselves.
The transaction is significant because it extends institutional investment beyond conventional data-centre ownership into the infrastructure needed to support continued growth in computing capacity.
It also demonstrates how specialist energy platforms can combine development capability, long-term contracted revenues and access to substantial infrastructure capital.
Ownership structures change the allocation of risk
Third-party ownership can reduce the upfront capital requirement for a data-centre developer, but it does not eliminate the commercial risks associated with power supply.
Long-term power agreements introduce obligations relating to pricing, capacity, availability, performance and creditworthiness. Investors in the energy infrastructure must assess construction costs, operating performance, contractual protection and the financial strength of the customer.
Control over future expansion also matters. A data centre may need additional electricity capacity over time, making the flexibility of the ownership and supply arrangements commercially important.
These considerations can have a direct bearing on transaction structures. A strategic energy partner may be prepared to assume infrastructure development and operating responsibilities, while a financial investor may prefer contracted cash flows supported by established counterparties.
The result is a wider range of potential partnerships between data-centre developers, operators, utilities and infrastructure capital.
However, alternative ownership alone cannot overcome upstream network constraints or guarantee earlier energisation. The underlying power-delivery programme must still be technically and commercially credible, as discussed in our earlier analysis of UK data-centre investability and deliverable power.
Implications for data-centre investment and partnerships
The growing convergence between energy and digital infrastructure has implications for how development opportunities are assessed and financed.
Investors evaluating a data-centre project may increasingly need to consider the energy infrastructure alongside the real estate and operating business. The ownership of grid connection rights, the allocation of capital expenditure and the contractual relationship with the power provider can materially influence development risk and long-term value.
For developers, strategic partnerships with energy companies and infrastructure investors may provide access to capital and technical capabilities that would otherwise need to be developed internally. For specialist energy platforms, the expansion of digital infrastructure creates opportunities to invest in assets supporting long-term electricity demand.
The market is unlikely to converge on a single ownership model. Different locations, power requirements, customer arrangements and development stages will favour different structures.
What is becoming clearer is that the infrastructure supplying electricity to a data centre can represent an investment proposition in its own right. As the UK market expands, ownership and financing of that infrastructure are likely to become increasingly important elements of data-centre transactions and strategic partnerships.