The U.K. government has officially designated data centers, which store a substantial portion of the nation’s data, as ‘Critical National Infrastructure.’ This decision acknowledges the vital role these data centers play in powering the economy, placing them on par with essential services like energy and water systems. Such designation allows the government to provide enhanced support to the industry during critical incidents, minimizing economic disruption and aiding in recovery and future planning. The move provides the industry with increased confidence when establishing operations in the U.K., ultimately fostering economic growth for all.
This is the first CNI designation in nearly a decade, following the space and defense sectors’ attainment of the same status in 2015. CNI will include physical data centers and the cloud operators that use them to supply ordinary services, including companies such as Microsoft, Amazon, and Google.
It also comes as the U.K. government welcomes a proposed £3.75 billion investment (about US$5 billion) in Europe’s largest data center, as plans have been submitted to Hertsmere Borough Council for construction in Hertfordshire by data company DC01UK which will directly create over 700 local jobs and support 13,740 data and tech jobs across the country. Data including vital NHS, financial, and personal smartphone data is set to be safer from cyber attacks, environmental disasters, and IT blackouts as part of the government’s drive for economic growth.
The ‘Critical National Infrastructure’ status will also deter cyber criminals from targeting data centers that may house vital health and financial data, minimizing disruption to people’s lives, the NHS, and the economy. In the event of an attack on a data center hosting critical NHS patients’ data, for example, the government would intervene to ensure contingencies are in place to mitigate the risk of damage, or to essential services, including patients’ appointments or operations.
The new protections will also boost business confidence in investing in data centers in the country, an industry that already generates an estimated £4.6 billion in revenues a year.
“Data centers are the engines of modern life, they power the digital economy and keep our most personal information safe,” Peter Kyle, technology secretary, said in a media statement. “Bringing data centers into the Critical National Infrastructure regime will allow better coordination and cooperation with the government against cyber criminals and unexpected events.”
Kyle added that the huge £3.75 billion private investment announced in Hertfordshire is a vote of confidence in those plans and a clear example of my determination to ensure technological advancements are helping to grow our economy and create wealth across the country.
Earlier this year, the Department for Science, Innovation and Technology (DSIT) also announced its intention to introduce the Cyber Security and Resilience Bill and strengthen the country’s cyber defenses by mandating that providers of essential infrastructure protect their supply chains from attacks.
The July CrowdStrike incident affecting 60 percent of GP practices with disruption to software holding patients’ appointment details, prescriptions, and health records showed the catastrophic impact of IT and cyber threats on people’s lives.
Awarding critical national infrastructure status shows the fundamental importance of data centers for the government, and these measures renew the U.K.’s commitment to ensuring the U.K. data industry remains secure and stable. The move will provide greater reassurance that the UK is a safe place to invest in data centers to businesses such as DC01UK, the company behind today’s planning application for an investment of nearly £4 billion in Europe’s largest data center in Hertfordshire.
Currently, the U.K. is home to the highest number of data centers in Western Europe. Boosting the resilience of the sector will help the country top the global leagues for data security and support the U.K. government in its mission of achieving sustained economic growth.
“We welcome today’s announcement by the government which recognizes the critical nature of data centers and digital infrastructure to the economy and society,” Bruce Owen, U.K. managing director of digital infrastructure provider Equinix, said. “The internet, and the digital infrastructure that underpins it, has rapidly grown to be as fundamental to each one of our daily lives as water, gas, and electricity, and is now a service that people and the UK economy can no longer live without.”
He added, “Equinix is happy to have played an important role in the consultation process to bring about today’s critical national infrastructure status, which we believe will help safeguard the industry by ensuring the stability and growth of the UK and global economy and lay the groundwork for the UK’s bright digital future.”
“techUK welcomes the government’s pivotal decision to designate the data centers sector as critical national infrastructure and the recognition of the critical role they play in the UK’s modern economy,” Matthew Evans, director of markets and chief operating officer at techUK, said. “Data centers are fundamental to our digitizing 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. Continued engagement and partnership will be key in advancing our shared objectives of a secure, resilient, and thriving digital economy.”
In July, Chaucer, a U.K.-based global specialty (re)insurance group, announced that successful cyber attacks on U.K. utility companies have surged to 48 in 2023, marking a staggering 586 percent increase from the seven incidents recorded in 2022. So far these cyber attacks have been largely restricted to the theft of data or ransomware attacks. There have been concerns that cyber attacks designed to damage infrastructure such as utilities could increase due to a rise in geopolitical tension.
The accountancy firm EY has published a report demonstrating a missing £1.6tn gap in infrastructure spending EY have published a report examining the
The UK is heading towards an infrastructure spending shortfall of £
Capital programmes worth £1.6trn and projects through to 2040 are currently unfunded, potentially risking the completion of critica
The UK government must find £1.6 trillion (US$2.1 trillion) of capital by 2040 to fund new infrastructure as high inflation costs push up pric