Lancaster City Council’s cabinet has approved plans to build the city a new data center at the Salt Ayre Leisure Centre in Lancaster, UK.

Receiving unanimous approval during the cabinet meeting on July 8, the data center will replace the City Council’s existing and “aging” facility near Lancaster Town Hall.

The project is still subject to planning permission, but should it go ahead, the data center is expected to be operational by the end of March 2026.

The new data center will be located “at the rear” of the Salt Ayre Leisure Centre, and will provide waste heat to the center’s swimming pool. Additionally, an onsite battery energy storage system will be deployed, and power will be provided by a local solar farm.

Intended mainly to host the council’s IT infrastructure, space will also be available for lease by other organizations.

Further details of the data center remain restricted by virtue of paragraph 3 of Schedule 12A of the UK’s Local Government Act, 1972.

Councillor Tim Hamilton-Cox said of the project: “The building of this new data center will be a big step forward. Our current facilities in Lancaster are not fit for purpose and would require very significant investment. Investing in this modern data center ensures we will be fit for the future as an organization while also providing digital infrastructure for users of the fiber network.

“There are also many environmental benefits as the new data center will cut our carbon emissions and lower our energy bills, supporting our net zero ambitions. The scheme is also another example of strong partnership working with both the private sector and Blackpool Council.”

The facility will further be part of the Local Full Fibre Network (LFFN) that was completed earlier this year, which aims to position the area as a hub for digital infrastructure and for potential AI Growth Zone initiatives.

The network consists of ultra-fast fibre optic cables connecting Lancaster, Morecambe, and Heysham, and was developed in collaboration with The Networking People. It was the result of a £1.8 million ($2.4m) investment from the city council, and aims to reduce the council’s own costs for data transmission, but also create new opportunities for businesses.

AI Growth Zones were put forward in an AI action plan launched by the UK government in January of this year. The Growth Zones are areas across the country that will “speed up planning approvals for the rapid build-out of data centers, give them better access to the energy grid, and draw in investment from around the world,” the first of which is planned for Culham, Oxfordshire.

The government plans to confirm and commence development of the first AI Growth Zones by the end of this year, delivering sites across the UK, “including in Scotland and Wales.”