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Across Europe and the UK, the datacentre sector is navigating a new kind of constraint. Growth is no longer limited by available land or funding. The real bottleneck is power. According to Salute’s State of the Industry 2025 report, power availability and grid connectivity is now the number one barrier to new datacentre projects, at 27%.
This shift is significant. For years, expansion was driven by footprint. Build bigger, build more, scale endlessly. Today, organisations are rethinking the fundamentals. The central question has become simple. Not “Where do we have space?” but “Where can we rely on stable power for the next decade?”
For most enterprises, particularly those operating traditional compute environments, this question shapes every investment decision.
The Power Bottleneck Reshaping European Infrastructure
Power scarcity is affecting almost every major hub. Many regions now face five to ten year delays for new grid connections. This is particularly visible in London, Dublin, Amsterdam and Frankfurt, where hyperscale demand frequently saturates available power long before new supply can be brought online.
The report’s findings reflect this directly. It shows that technology is no longer the limiting factor. The grid itself is now the weakest link in the digital economy.
Enterprises that rely on traditional workloads need more certainty than these congested markets can provide. They need predictable capacity, stable pricing, and a site where their needs will not be deprioritised behind hyperscale AI demand.
Traditional Compute Needs Predictable, Steady Power
While much of the industry conversation focuses on AI clusters and 30 to 100kW racks, the reality for most organisations is very different.
The majority of enterprise workloads continue to run perfectly effectively on traditional 4kW racks. These workloads still power critical operational systems, regulated databases, latency sensitive applications, and internal services that cannot simply be refactored for the cloud.
These environments have very clear requirements. They need stability. They need resilience. They need the confidence that their power draw will not be overshadowed by competing high density neighbours. They do not need exotic cooling or emerging architectures. They need a dependable location that is engineered for long term continuity.
This is why many organisations are now exploring locations away from congested mainland grids.
Why the Isle of Man Offers a Meaningful Alternative
The Isle of Man is emerging as a compelling location for organisations seeking stable, right sized datacentre capacity. As an island jurisdiction, the power landscape is fundamentally different. Grid congestion is lower. Competition for megawatts is more balanced. Planning and regulatory structures are stable and clear.
Manx Telecom’s datacentres strengthen this further. They deliver:
• N+1 power architecture
• Concurrent maintainability
• Independent feeds
• A consistent engineering presence across every hour of the day
• Tier 3 aligned design across both facilities
For organisations that cannot afford to gamble on future grid availability, the Isle of Man offers a safe, reliable path.
Why Power Strategy Now Matters More Than Footprint
A decade ago, location was often a secondary consideration. Today it is a strategic priority. The questions CIOs, CTOs and CFOs are asking have shifted. They now focus on long term risk, rather than short term capacity.
The key considerations are:
1. Grid risk
Will this region have enough power in five years?
2. Contention
Are hyperscalers competing for the same megawatts?
3. Geography
Does the location offer risk reduction through sovereign separation?
4. Cost predictability
Will power pricing remain stable or fluctuate due to grid strain?
5. Regulatory stability
Is planning policy consistent and reliable?
Large metro regions cannot always offer clear answers to these questions. The Isle of Man can.
This aligns with Salute's findings. Organisations are now diversifying their infrastructure footprint specifically to mitigate power constraints.
This Matters for Traditional Compute More Than Any Other Workload Class
Traditional compute is often undervalued in market reporting, yet it remains the engine that runs most enterprises. These workloads underpin operational resilience and business continuity. They cannot be displaced every time a grid region becomes constrained.
They need locations that can guarantee consistent performance, stable power, disciplined operations, and predictable running costs.
The Manx Telecom Group Datacentre model is designed for these exact requirements. It is built for continuity rather than scale, and for resilience rather than density.
