Pinewood Group has unveiled revised expansion plans for its Buckinghamshire site, incorporating additional soundstages, production facilities, and a data center in response to shifting market dynamics. The studio, long considered the “spiritual home of the British film industry,” will hold a public consultation from February 25-27 to discuss the updates. The decision to integrate a data center into the development reflects broader industry trends, as declining global content production and rising operational costs push studios to explore alternative revenue streams.

The move comes as major technology firms ramp up investments in AI-driven data center infrastructure. OpenAI, Oracle, and SoftBank recently announced Stargate, a $500 billion initiative to develop large-scale data centers across the U.S., with an initial $100 billion phase already underway. Meanwhile, Meta, Google, and XAI are all pursuing major data center projects, intensifying competition for prime real estate with the power, space, and workforce needed for advanced computing.

This has put existing soundstage facilities in the spotlight as prime data center development targets. Unlike traditional data center projects that require acquiring and building on undeveloped land, soundstages offer significant advantages: they are located in major metropolitan areas with robust power and water infrastructure, feature large clear spans ideal for flexible and scalable data center layouts, and are already equipped to handle high-energy demands. Their proximity to a skilled workforce is also crucial, as AI-driven data centers require specialized technicians and engineers to operate efficiently.

Wycombe Film Studios recently announced similar plans to build a data center on-site, citing “substantial market demand” and uncertainty in the studio sector as key drivers. With the UK government designating data centers as Critical National Infrastructure and easing planning restrictions to encourage growth, more studios are looking to follow suit.

StageRunner, a global soundstage marketplace and consulting firm, is actively working with several soundstage operators and technology companies to explore data center development within studio facilities. Pinewood’s revised expansion plans highlight a broader trend in the industry, as major studios look to offset the decline in traditional production by integrating digital infrastructure into their operations.