New opportunities, new pressures: navigating the AI infrastructure surge

Faster cancer diagnosis. Smarter fraud detection. More personalised education. Artificial intelligence (AI) is no longer emerging technology – it is embedded in how businesses and governments operate today.

In the latest Attwaters’ Private Wealth Guide, we explore how AI is reshaping productivity, public services and long-term growth strategy – and why the infrastructure powering it now deserves equal attention.

AI is also being positioned as part of the climate solution. One study suggests AI-enabled efficiencies could help reduce global greenhouse gas emissions by several billion tonnes annually by 2035. Yet as adoption accelerates, so too does the environmental footprint of the systems that make it possible – particularly at a local level.

Troubled waters?

The tech that underpins AI requires massive volumes of processing power housed in equally massive data centres. These facilities often consume large quantities of water to prevent overheating. Some experts estimate that a typical data centre can use millions of litres of water per day, particularly in facilities using evaporative cooling systems. In some cases, annual water usage has been compared to that of tens of thousands of households.

With the number of data centres in the UK predicted to increase by around 20% this decade, concerns are growing about the impact on local communities. Parts of the UK, especially the south where many data centres are located, are already under threat of water shortages due to climate change and population growth.

Powering AI: the grid challenge

It’s not just water consumption that’s a potential concern: AI data centres can also put added strain on local power grids. The way AI tech works means there are frequent spikes in energy consumption, which are equivalent to thousands of homes switching kettles on and off in unison every few seconds.

Industry pundits are already warning that the AI data centre energy drain needs to be carefully managed to prevent issues with supply and demand. The National Energy System Operator estimates that UK data centre growth could add 71 TWh (terawatt hours) of electricity demand over the next 25 years.

Just the job for growth

The UK government continues to position AI as a cornerstone of economic growth and productivity. More than half of proposed UK data centre developments remain concentrated around London and neighbouring counties, including Hertfordshire and Essex.

Projects such as the multi-billion-pound hyperscale facility approved in Potters Bar have attracted both strong local opposition and strong economic backing. Developers argue that such facilities can deliver long-term investment, high-skilled employment and biodiversity enhancements. Community groups, meanwhile, continue to raise concerns around water security, energy demand and land use.

In Essex, large-scale AI infrastructure backed by major global technology firms is expected to support hundreds of jobs once fully operational. Across the UK, the data centre sector now supports tens of thousands of roles directly and indirectly – and that number is projected to grow as AI capability expands.

AI in action: public sector impact

While infrastructure pressures dominate headlines, AI’s operational benefits are increasingly tangible.

Government departments have reported recovering hundreds of millions of pounds through AI-enabled fraud detection systems. In healthcare, NHS trials of AI-assisted clinical documentation tools have demonstrated meaningful reductions in administrative burden – in some cases allowing clinicians to spend significantly more time with patients.

Learning to live and thrive with AI

AI is not a passing trend. It is becoming foundational infrastructure – similar to broadband or electricity in earlier decades.

The question for 2026 is no longer whether AI will shape the future. It is whether our physical infrastructure, policy frameworks and investment strategies are evolving fast enough to support it responsibly.

You can explore more analysis like this in our latest Private Wealth Guide and across our social channels using #PrivateWealthGuide.