Britain bets on nuclear-powered data centre at Cottam to fuel AI expansion

Britain is moving to build its first nuclear-powered data centre at Cottam, Nottinghamshire, in a plan worth about £11 billion that would power a facility seen as central to the country’s artificial intelligence ambitions. The project is led by US firm Holtec International, with EDF and real estate partner Tritax Management, and would rely on small modular reactors to provide the data centre’s energy supply. Regulators would need to approve the project before construction could begin, with a target to start major work by 2029 and to have the site operational around 2032. The plan forms part of a broader push to expand flexible energy capacity alongside AI infrastructure, and comes as the government weighs how to meet surging electricity demand without overreliance on fossil fuels.

The project aims to power a data centre that would host the energy-intensive AI training and inference workloads increasingly central to the technology sector. The centre is expected to draw about 1.5 gigawatts of electricity, a load equivalent to roughly 750,000 homes and about the energy needs of a city the size of Birmingham. Proponents say the facility would be designed to minimize water use through innovative cooling technology: a closed-loop system that recirculates water rather than drawing large amounts of fresh water. If realized, the Cottam site would stand as a landmark example of nuclear-enabled data infrastructure in the UK.

The Cottam project is positioned as the culmination of a raft of UK-US technology deals totaling about £131 billion announced during President Trump’s state visit, signaling a shared aim to accelerate advanced nuclear deployment and the AI race. The developers say the site’s selection reflects its connection to the National Grid, as well as the potential to deploy a reactor design being developed for a site in Michigan. One of the key selling points is that the data centre would not depend on a large supply of water, contrasting with some other data-centre operations where cooling water is a major input. Gareth Thomas, a UK-based director of Holtec, indicated that several SMRs could be built at Cottam with a target completion date of 2032. He noted that the project would include a back-up grid connection to bolster resilience in the event of significant disruptions to the reactors. The timescale, he said, depends on the Office for Nuclear Regulation reaching agreement with the U.S. Nuclear Regulatory Commission to streamline the regulatory process so the UK regulator can grant permission to start major construction in 2029, two years after the U.S. regulator is expected to reach a similar milestone for a related project in Michigan.

The government’s ambition to secure a nuclear path to AI infrastructure has drawn skepticism and caution from some observers. Bhargav Srinivasa Desikan, an author who has written on big tech’s climate impact, described SMRs as “unproven technology” and warned that nuclear projects often run over budget and behind schedule. He cautioned that the data centre could be built before reactors are ready and that the broader grid could face additional strain. Prof Gina Neff, deputy head of the Responsible AI campaign group, said the mathematics of the energy equation must be right before such facilities are built, noting the UK already faces power and water constraints. “We don’t have enough power and we don’t have enough water,” she said, adding that there are difficult trade-offs between expanding AI capacity and meeting climate goals.

Industry and engineering voices have long warned that a surge in data-centre demand will require careful balancing of energy supply and water resources. The Royal Academy of Engineering warned in February of potential environmental damage if firms do not accurately report energy and water use and pressed for better oversight of how data centres access freshwater. The government has acknowledged data centres face sustainability challenges related to energy intensity and water use, but officials have emphasized the potential for technological and regulatory innovations to help manage these pressures. Anglian Water’s recent objections to a Lincolnshire data centre—cited in the broader debate—highlight the ongoing tension between expanding digital capacity and safeguarding water resources in a region facing drought pressures. In response, developers point to high-efficiency designs and reuse of water as part of the plan’s appeal.

Supporters argue that UK dependence on imported energy could be reduced if such nuclear-enabled data centres come online, contributing to a more self-sufficient energy mix and helping to sustain AI growth without exacerbating grid bottlenecks. The government has framed the project as part of a broader strategy to secure strategic energy and technology capabilities, including the potential for data-centre clusters in regions with favorable grid access and industrial heritage, such as the Trent Valley area where Cottam sits on the River Trent. Critics, however, stress the need for transparent reporting on energy and water use and caution that the government’s Net Zero goals must align with practical demands of AI-scale infrastructure.

The Cottam plan underscores a broader debate about how to power an AI-enabled economy: with nuclear energy, gas-backed generation, or a combination of renewables and storage. Nvidia chief Jensen Huang has suggested that energy needs for state-of-the-art AI infrastructure could require gas-fired power as a bridge while renewable and low-carbon options scale up. Government supporters counter that SMRs could provide a stable, low-carbon backbone for critical infrastructure and industry, including data centres, while reducing reliance on fossil fuels and avoiding large-scale water withdrawals.

As the regulatory path unfolds, observers will watch how the UK balances ambitious AI deployment with energy and water sustainability. The Cottam project represents a concrete test case for the feasibility of nuclear-powered data centres in the UK, the practicality of SMRs in serving high-density digital demand, and the regulatory coordination required to translate a visionary plan into a real-world facility that could reshape Britain’s technology landscape over the next decade. Investors, policymakers, and industry players will be closely scrutinizing the timetable and the cost assumptions as the project moves through the approvals process and toward potential construction.

The plan’s proponents emphasize that the data centre would be part of a broader strategy to anchor AI capabilities within Britain, leveraging UK-US collaboration to accelerate deployment of cutting-edge energy and digital technologies. If successful, the Cottam facility could become a template for similar projects across the country, provided energy and water sustainability concerns are addressed and the regulatory framework supports a timely construction and commissioning timeline. The coming years will reveal whether this bold confluence of nuclear technology and AI infrastructure can deliver on its promise without compromising environmental and energy-system integrity.