Market Intelligence
Information and Communication Technology United Kingdom

UK Data Centers Market 2024

In September 2024, the UK Government announced UK data centers (both physical and cloud operators) are now classed as Critical National Infrastructure (CNI). The CNI designation will allow the government to support the sector in the event of critical incidents, such as cyber-attacks, environmental disasters, and IT blackouts, minimizing impacts on the economy. This is the first CNI designation in almost a decade, since the space and defense sectors gained the same status in 2015.

This classification follows on another UK Government announcement earlier in the summer which laid out the introduction of the Cyber Security and Resilience Bill to strengthen the UK cyber defenses by mandating that providers of essential infrastructure protect their supply chains from attacks.
The UK Government announcements come at the same time as a near $5bn proposed investment in Europe’s largest data center to be located near London. This builds on an industry which already generates an estimated $6bn in revenues a year, with the UK being home to the highest number of data centers in Western Europe.

These public and private sector activities are a huge vote of confidence in the UK date center market and create increased opportunities for U.S. tech vendors with solutions in industry security, stability and resilience. U.S. companies have a worldwide reputation for innovative technology, after sales service, and training which makes them competitive in the UK market. As the U.S. and UK also share similar business cultures and business practices, it makes the UK an attractive market for U.S. suppliers.

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