The UK government today placed the cloud industry at the heart of its plans for economic growth after it unveiled proposals to designate British data centres as ‘critical national infrastructure.’
The move, which is the first such designation in nearly a decade, places data centres on a par with water, energy and emergency services systems and will mean businesses sector can now expect greater government support in recovering from and anticipating critical incidents.
The announcement, which elevates data centres to among the country’s most important national infrastructure, is aimed at ushering in a wave of fresh investment into the UK’s cloud market by providing the industry with greater reassurance when setting up operations in the UK.
Technology Secretary Peter Kyle said: “Data centres are the engines of modern life, they power the digital economy and keep our most personal information safe.
“Bringing data centres into the Critical National Infrastructure regime will allow better coordination and cooperation with the Government against cyber criminals and unexpected events.”
It comes as some of the world’s biggest cloud businesses cemented their commitment to the UK economy after laying out plans for more data centre investment.
AWS, which already accounts for around a third of the UK’s public cloud infrastructure market, earlier this week said it would deploy as much as £8 billion over the next five years in building, operating, and maintaining data centres.
The Amazon-owned firm said the investment would contribute as much as £14 billion to UK GDP through to 2028, supporting an average of more than 14,000 full-time jobs on an annual basis in local UK businesses.
Today AWS was joined by a new venture called DC01UK, which unveiled plans to build a new, state-of-the-art data centre situated in Hertsmere, Hertfordshire.
If it is given planning permission, the proposed facility is set to become one of the largest data centre campuses in Europe, catering for up to two million square feet of floor space, set in the grounds of 85 acres adjacent to the A1 and M25, just east of South Mimms Services.
Read more: Who is DC01UK, the firm behind plans for a huge billion-pound data centre?
In recent months the UK government has signalled its openness to proposals to build more data centres in the UK as it eyes opportunities to accelerate growth in the British economy. In July, Levelling Up secretary Angela Rayner unveiled a review into two proposals to build data centres in London’s commuter belt which had been blocked by local authorities in signs the government is prepared to overrule local planning decisions to support public infrastructure development.
The total economic impact of cloud computing in the UK accounted for over £42 billion in 2023, according to an analysis by Telecom Advisory Services. That is equivalent to 1.6% of GDP, larger than the UK’s automotive manufacturing sector.
Matthew Evans, Director of Markets and Chief Operating Officer at techUK, said: “techUK welcomes the Government’s pivotal decision to designate the data centres sector as Critical National Infrastructure and the recognition of the critical role they play in the UK’s modern economy.
“Data centres are fundamental to our digitising economy and are a key driver of growth. We look forward to collaborating closely with the Government and our stakeholders to ensure the successful implementation of these new measures and their impact on the sector.”
