The findings come from new research showing that, despite the unprecedented push by the UK government and businesses to develop data centers and artificial intelligence (AI), fiber remains the critical bottleneck that could slow the UK's digital growth. However, the industry is united around the solution: investment in new, high-capacity fiber backbone networks.
The study, conducted in collaboration with Censuswide, surveyed data center operators, enterprise IT managers, and local government stakeholders. Across all three groups, there was overwhelming consensus that fiber backbone networks are the foundation of the UK’s AI infrastructure:
89% of local government stakeholders say fiber shortcomings have delayed infrastructure projects in their regions.
Nearly half (45%) of enterprises cite fiber as the primary bottleneck hindering AI and digital infrastructure.
Almost half (46%) of local government authorities say their region’s fiber optic infrastructure is not fully ready to support AI data centers.
One in six enterprises (16%) doubts the capacity of the UK’s current fiber optic infrastructure to support their AI ambitions.
Lee Myall, CEO of Neos Networks, said: “Over the past decade, we’ve seen massive investment in building last-mile fiber optics, but the country’s core fiber optic networks have received far less attention. Without them, workloads can’t move between data centers, data can’t be trained, and investments stagnate. The UK has the ambition, demand, and regional readiness to lead in AI, but if we don’t address the fiber optic gaps, we risk missing out on one of the greatest economic opportunities of our generation.”
AI is reshaping data centers and digital strategy.
The UK government has stated its ambition to position the country as a global leader in AI, with initiatives such as the AI Growth Zones within the AI Opportunities Action Plan being central to this vision. Research shows that these policies are already shaping investment and strategy across the ecosystem:
96% of data center operators say AI Growth Zones are influencing expansion and site selection, with 44% citing them as a major influence.
68% of businesses see AI Growth Zones as a strong driver of change in their infrastructure planning.
Importantly, this momentum is fueling new growth corridors beyond London. While 23% of data center operators are still looking to Greater London for new investment, a larger proportion are targeting the North of England and the Midlands (39%), indicating a shift towards regional hubs of AI activity.
This diversification is reflected in how computing is being deployed. As data centers become increasingly dispersed, almost all (97%) data center operators expect up to half of their UK computing to move to the network edge by 2030, underscoring the need for high-performance, resilient fiber across all regions.
But despite this momentum, concerns remain:
41% of data center decision-makers believe UK fiber networks are only partially ready to support regional AI workloads.
More than 70% of businesses feel the UK's attractiveness for data center investment needs improvement (53%) or is lagging (17%).
Capitalizing on opportunities through new fiber backbones:
The research highlights the way forward, with new fiber backbone projects critical to driving growth. Nearly all respondents agree that investment in high-capacity fiber corridors will transform confidence in the UK's ability to attract and scale AI projects:
95% of data center operators, 96% of businesses, and 96% of local authorities say new fiber corridors in underserved areas would have a positive impact on the growth of AI and data centers.
More than half of local authorities (53%) believe these projects would be transformative for their regions.
Myall concluded: “AI is no longer a future ambition; it’s here today, reshaping how businesses, communities, and governments operate. But the UK cannot lead AI with yesterday’s infrastructure, and we need continued investment in the fiber backbone networks that connect all regions of the country. At Neos, we are committed to laying those foundations so the UK can not only keep pace but also compete and thrive in the global AI race.”
Methodology:
Neos Networks commissioned Censuswide to conduct a survey of 100 data center decision-makers, 100 technology/IT decision-makers from large enterprises, and 100 local government stakeholders across the UK in August 2025.
To supplement the survey results, Neos Networks also conducted qualitative interviews with UK operator Kao Data, global property consultancy Knight Frank, and research and education organization Jisc between August and October 2025. In addition, Neos Networks collaborated with Oxfordshire County Council (OCC), with which it has a long-standing relationship, to discuss the report's findings and gather further information.
