The UK government has unveiled plans to boost the cloud industry by designating data centres as critical national infrastructure.
- This change allows for increased investment and support, positioning data centres alongside vital services like water and energy.
- Technology Secretary Peter Kyle highlighted the move’s benefits for security and economic stability.
- Major companies, such as AWS, have announced significant investments following the government’s decision.
- The cloud sector’s impact on the UK economy surpasses even the automotive industry, marking a pivotal growth phase.
The UK government has taken a significant step in advancing its economic growth strategy by designating data centres as critical national infrastructure. This decision aligns data centres with essential services such as water, energy, and emergency services, promising them increased government support in times of crisis.
This announcement aims to attract substantial investment into the UK’s cloud sector, as it reassures businesses of the government’s commitment to facilitating operations in the UK. Technology Secretary Peter Kyle emphasised that data centres are crucial to modern life, powering the digital economy and safeguarding personal information.
In this context, large cloud service providers have committed to expanding their operations in the UK. Amazon Web Services (AWS), a major player in the UK’s public cloud infrastructure market, announced plans to invest £8 billion over the next five years in building and maintaining data centres. This investment is projected to contribute approximately £14 billion to UK GDP by 2028, while supporting over 14,000 full-time jobs annually.
AWS’s commitment is complemented by plans from DC01UK to develop a state-of-the-art data centre in Hertfordshire, potentially one of the largest in Europe. This development is pending planning permission but demonstrates the confidence in the UK’s cloud market potential.
The UK’s proactive stance is further illustrated by its decision to review blocked data centre projects in the London area, showcasing a willingness to override local authorities to support infrastructure growth. Notably, the cloud sector’s economic impact was over £42 billion in 2023, surpassing the UK’s automotive manufacturing industry.
The UK’s designation of data centres as critical national infrastructure is a strategic move to enhance economic growth and security.
