Huge boost for UK market town as work begins on new £350m mega-project

CGI of Kao Data centre

The Kao Data centre (Image: Kao Data)

A £350m project that could turn a market town into the is now underway. 

Tucked away behind the , is a groundbreaking scheme that could revolutionise Greater Manchester’s future. A discreet location off Kenwood Road in Reddish has been earmarked for an ambitious new £350m data centre, which received the green light from Stockport council in March.

The construction is in full swing with a completion target set for 2026. Spanning 25,900 sqm, the Kao Data facility will serve as a vital hub for the digital demands of contemporary life from everyday mobile phone and laptop use to pioneering (AI). 

Kao data centre.

Building work pn the centre is in full swing (Image: LDRS)

Destined to be the largest data centre in the northwest, this site was strategically selected to lure tech giants and foster a burgeoning tech city distinct from London’s dominance. The visionaries behind the initiative believe it will pave the way for more data centres to flock to the area, positioning , reports .

“We’ve been the fastest growing digital and tech hub in Europe in recent years, but if we want that to continue we need to see the emergence of facilities like this,” declared mayor

He continued: “This is the first of its kind. There are other, smaller data centres in the city-region, but this is the first large scale, modern, zero-carbon data centre in Greater Manchester.

“It will particularly support the development of our AI cluster, we’ve got the largest AI cluster in the country outside London, maybe the largest overall – six per cent of UK AI is based here.

“We want to double in the years to come, so facilities like this and partnerships with Kao Data are going to be huge going forward. There’s an opportunity right now for Greater Manchester to become the first big mover in this space in the north of England.”

Andy Burnham visiting Kao Data centre

Andy Burnham says the area is Europe’s fastest growing digital and tech hub (Image: Kao Data)

Spencer Lamb, Kao Data’s chief commercial officer, praised Stockport as the perfect location for the new data centre, citing its access to the necessary workforce to see the project through to completion. He expressed his dissatisfaction with the trend of data centres being predominantly based around London over the past 15 years, labelling it as ‘not sustainable’.

“The UK data centre topology has historically been in the southeast around London, because the demand for these facilities is so significant the data centres have sucked dry available power around London,” he explained.

“We need to distribute these data centres across the country, and for the resources and skill set around the northwest and Greater Manchester, we’ve chosen the process of developing this site.”

Mr Lamb revealed that there has already been interest from companies wanting to utilise the services at the centre, suggesting a ‘very healthy’ pipeline and hinting at plans for another data centre in the region.

Stockport Town Hall, Greater Manchester, England

Stockport is being regnerated (Image: Getty)

For Stockport, this development aligns with its regeneration plans for the borough, which the council hopes will draw in new businesses and residents. Council leader Mark Hunter expressed enthusiasm.

He said: “It’s a fantastic boost for the borough, there’s no doubt about that. This is stuff and we’ve been impressed going round and listening to what Kao has had to say about the plans for the future.”

“This is only the start, this is the first development of this type outside of London and the south east, and we can see it being a forerunner of even bigger and better things in the future. It’s a massive landmark statement, great for Stockport and great for Greater Manchester.”

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