Re: Cooling?
Not really a mystery, it's all about connectivity and geography, and less to do with latency and more to do with bandwidth, cost and agglomeration.
The London area starts with about 10% of the UK population, all now keen on bandwidth-hungry gaming and video streaming, but previously all keen on the as-was bandwidth-hungry applications of the younger internet. Fibre installation ultimately costs per-mile, so putting the compute closer to the population reduces bandwidth costs. Then this compounds because putting compute close to other compute (some of which it will inevitably need to connect to) also reduces bandwidth costs. Then you add in that this attracts more fibre investment and bandwidth to the same locations, including international connections, and things compound further. Skills availability is another feeder for agglomeration, as is London's position as a popular connection node between America, Europe and Asia.
Functionally the internet appears to be geographically agnostic, but we know that in reality getting bandwidth longer distances to the back of beyond costs substantially more than around major cities. Not only is fibre installation cost per-mile but more energy is required on an ongoing basis to send more data over longer distances. So whilst data centres anywhere there's power available are in theory possible, in practice the bandwidth cost is more of an issue than you might think.
As time moves forward the Moore's law acceleration of compute vs the rather more linear acceleration of connectivity suggests we might see more "edge" compute distributed closer to smaller population centres, but that remains to be seen, and it's hard to see how the agglomeration effect of global hubs like London (+ Singapore, North Virginia, Amsterdam etc) can be avoided.