How the 2024 budget will impact the data centre sector

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The impact of the budget

The recent UK budget introduced a series of financial initiatives and policies aimed at propelling the UK towards a more innovative, efficient, and sustainable future. Technology is a pivotal driver of economic growth, so understanding the nuances of the budget and its implications is essential for strategic planning and resource management.

Key budget provisions affecting data centres

Investment in green technology

One of the central themes of the 2024 budget is sustainability, with significant investments directed towards green technology in line with the UK’s commitment to achieving net zero emissions. There is now an urgent call for data centres to adopt energy-efficient practices, so the government has unveiled incentives for data centres that adopt energy-efficient technologies in a drive to reduce carbon footprints.


What we’re doing

  • We have implemented an energy-efficient cooling system across our sites that reduces power and water consumption (the latter by 70%).
  • Our backup generators now operate on biofuel, reducing reliance on fossil fuels and enabling a cleaner energy profile.
  • All our data centres are powered entirely by electricity from renewable sources.
  • Our newest data centre – MCR2 in Manchester (currently under construction) – is equipped with photovoltaic (PV) panels to harness solar energy. Furthermore, heat re-use capabilities have been designed into the build, allowing us to repurpose excess heat for conditioning, reuse and delivery to local projects in the Wythenshawe area of Manchester.

Enhanced cybersecurity measures

The budget emphasises strengthening the UK’s cyber resilience, with additional funding earmarked for cybersecurity initiatives protecting national digital assets. Data centres, as critical components of digital infrastructure, will need to align with these enhanced measures.


What we’re doing

  • Our sites are protected by 24/7 on-site security personnel, comprehensive CCTV coverage, robust multi-level access controls, biometric verification, cutting-edge intruder detection and alarm systems, and stringent key management protocols. Our sites are designed to support the needs of highly regulated industries where security is paramount – our Manchester site features a Security and Operations Control Centre (SOC) and an on-site police-linked alarm receiving centre, and our Farnborough site is located on the ultra-secure, government-grade Cody Technology Park.

Digital infrastructure development

The 2024 budget outlines a strong commitment to upgrading the nation’s digital infrastructure, including faster broadband and enhanced connectivity solutions for better data transfer and operations. Organisations should evaluate how improved infrastructure can support their data centre’s capacity and performance upgrades, potentially opening up opportunities for expansion and improved service delivery.


What we’re doing

Our data centres provided the resilience, security and platform for organisations to complete their digital transformation. As such, we are continuing to expand our capacities and ensure low-latency connectivity to facilitate the integration of emerging technologies by our clients.

Skills and training

Recognising the skills gap in the IT sector, the UK 2024 budget includes programmes aimed at upskilling workers in technology and data management to meet the demands of a digital economy. With an emphasis on developing digital skills, data centres will benefit from a larger pool of skilled professionals thanks to partnerships with educational institutions and government-led training initiatives.


What we’re doing

Our growing company is focused on developing talent from within to ensure a robust and future-ready workforce. By investing in continuous professional development, we are not only equipping our staff with the necessary skills to excel in their roles, but also fostering a culture of learning and growth that they carry forward throughout their careers.

Funding for R&D and innovation

One of the standout elements of this year’s budget is the substantial increase in funding for research and development. The government is keen to position the UK as a leader in technological innovation, with significant investments channelled towards encouraging advancements in data processing and cloud technologies.


What we’re doing

Data centres like ours are integral to the R&D landscape, providing the infrastructure necessary for current and future large-scale processing and storage, and driving technological innovation.

Public service transformation through digitalisation

The budget also places a strong emphasis on transforming public services through digitalisation. By integrating advanced data management systems, the aim is to enhance efficiency and service delivery across various public sectors.

With the push for digitalisation, data centres are likely to experience a surge in demand from public service providers seeking to upgrade their systems and infrastructure, and this, in turn, will create a greater demand for the stringent security provided by data centres in a bid to safeguard public data.


What we’re doing

We understand the unique challenges faced by IT professionals in the public sector and have demonstrated time and again that our bespoke solutions, tailored to meet the specific needs of their operations, ensure the resilience, efficiency, and scalability needed for government applications and public service delivery. 

Find out more

We understand that staying ahead of technological advancements is crucial for economic growth, and that’s why our data centres are expanding to meet the increasing demands of modern businesses. If you’re looking to future-proof your operations and optimise your IT strategies, get in touch to discuss how we can help you get where you want to be.