How data centres support the UK’s digital economy

Data centres provide the essential physical infrastructure that underpins every aspect of the UK’s digital economy, supporting everything from cloud services and online payments to Internet of Things (IoT) devices such as fitness trackers and smart-home technology.

In the past decade, the UK has quietly shifted from paper-based products and forms to a point where digital is the default. Today, around three‑quarters of UK businesses handle digitised data as part of their operations. From checking a mobile phone bank balance to NHS records, next-day deliveries, and renewing a driving license online, digital services are now at the centre of our daily lives.

What’s easy to overlook are the implications of these day-to-day tasks. Every time you click, make a transaction, or transfer data, you rely on physical facilities that run around the clock to store, process, and transmit information securely.

Modern-day data centres support the UK’s digital economy not only as technical facilities but also as critical national assets. We’ll explore how they are the foundation for jobs, innovation, public services, security, and a more sustainable digital future.

Data centres are a core component of the digital economy.

Public services are a case in point. Secure, resilient facilities underpin NHS systems, storing patient records, supporting diagnostics, and delivering digital care services. Councils depend on data centres to run housing, planning, and social services. They are also relied upon by central government departments to deliver online services at scale.

The private sector is just as dependent. Banks rely on data centres to complete transactions, guard against fraud, and ensure customers can access their accounts whenever they need. Logistics businesses rely on real-time data to track goods and manage their supply chains. Digital platforms have become crucial for retailers to predict demand cost-effectively.

Data centres, like transport networks or power grids, often go unnoticed, but their reliability is essential for the economy to function smoothly.

Research featured in TechUK’s Foundations for the Future report highlights the broader economic contributions of the sector. The UK data centre industry generates approximately £4.7 billion in gross value added annually and supports more than 43,500 jobs nationwide. It’s estimated that further investment in digital infrastructure could deliver up to £44 billion of economic impact by 2035.

Data centres go beyond being commercial operations. They form a national infrastructure that supports growth, productivity, and digital inclusion across the UK.

Beyond the economics, data centres play a critical role in national security and data sovereignty.

Keeping data within the UK makes it easier for organisations to exercise control over how data is stored, accessed, and secured. This has taken on added value post-Brexit, as data localisation and regulatory compliance are being monitored more closely.

The UK had approximately 1.6GW of data centre capacity in 2024. Now, policy planning and resilience are the watchwords for ensuring this infrastructure can handle what’s coming.

Compliance with key legislation is also facilitated by UK-based data centres, including the Data Protection Act 2018 and the Network and Information Systems (NIS) Regulations 2018. These standards establish minimum requirements for data protection, availability and risk management in critical services.

Local hosting also provides better continuity during global crises. By keeping data closer to users, services are less vulnerable to international connectivity failures and geopolitical risks.

Protecting critical parts of the internet within the UK helps safeguard data and maintain public trust.

As the appetite for digital services swells, so too has scrutiny of the sector’s environmental impact. In the UK, data centre operators are responding by making sustainability a core part of their approach.

The 2025 GOV.UK report on the impact of data centre growth discusses how increased capacity affects national energy demand and how the government is modelling future needs. The work is part of an effort by tech companies to balance digital growth with climate commitments.

We have innovation across the industry that is driving real change. At the same time, other operators have begun using liquid-based cooling to handle higher-density workloads more efficiently. It’s also becoming standard practice to adopt renewable energy, reducing reliance on fossil fuels. Some buildings (including our recently launched MCR2 data centre in Manchester) are investigating the reuse of waste heat, pumping surplus heat into neighbouring buildings or district heating schemes.

Industry measures, such as the Climate Neutral Data Centre Pact, establish clear performance goals (e.g., a binding target to achieve power usage effectiveness of 1.3 or better and water usage effectiveness of 0.4kWh).

Datum is recognised for its commitment to these objectives and plays an active role in driving the industry forward. Data design, responsible power usage and future-proof solutions are at the core of what we do. These efforts demonstrate that digital infrastructure and environmental responsibility need not be at odds.