The UK government has taken a significant step in supporting the data centre industry by designating it as critical national infrastructure.
- This designation aims to provide the industry with more security and assurance, encouraging both domestic and international investments.
- Tech Secretary Peter Kyle highlighted the essential role data centres play in safeguarding personal data and powering the digital economy.
- Major cloud firms, including AWS, are planning substantial investments in UK data centres, boosting job creation and economic impact.
- The decision aligns with recent government actions to prioritise economic growth through digital infrastructure expansion.
The UK government has declared the data centre sector as ‘critical national infrastructure’, marking a pivotal change for the industry. This historic designation positions data centres alongside other essential services such as water and energy, ensuring they receive enhanced protection and support. The move is designed to attract significant foreign and domestic investment, offering assurance to businesses about the stability and support available in the UK.
Technology Secretary Peter Kyle has affirmed the vital importance of data centres in the modern economy, particularly in terms of security and digital functionality. By incorporating these facilities into the Critical National Infrastructure regime, the government aims to bolster coordination against cyber threats and other unexpected challenges faced by the sector.
Several prominent cloud service providers have expressed their commitment to expanding their UK operations following this announcement. Amazon Web Services (AWS), a leading player in the UK’s public cloud market, plans to invest up to £8 billion in the coming years. This investment is projected to contribute approximately £14 billion to the UK GDP by 2028, also facilitating over 14,000 full-time jobs annually.
A newly proposed data centre by DC01UK in Hertsmere, Hertfordshire, highlights the anticipated wave of infrastructure growth. This facility, pending planning approval, is set to become one of Europe’s largest data centre campuses, underscoring the UK’s growing appeal as a tech investment hub. The government has signalled its willingness to expedite approvals for such critical infrastructure projects, overriding local planning decisions when necessary.
The broader impact of cloud computing in the UK economy is substantial, accounting for over £42 billion in 2023, which is greater than that of the automotive manufacturing sector. Matthew Evans from techUK emphasised the sector’s indispensable role in economic growth and digital transformation. The collaboration between the government and stakeholders is expected to successfully implement these new measures and further elevate the sector’s status.
Overall, the UK’s decision to support the expansion of data centres as critical infrastructure signifies its strategic commitment to bolster the digital economy.
