WIREDGOV

techUK is excited to announce the release of its latest report highlighting the crucial role of the data centres sector as the backbone of the UK's digital economy. Data centres are poised for unprecedented growth, with the potential to contribute an additional £44 billion to the UK economy by 2035.

techUK's report demonstrates just how significant a contribution data centres make to the UK economy, and what more can be done to sustain this infrastructure and support their growth. Importantly, the report also shines a light on the impact data centres make in the nations and regions, and shares lessons from data centre development in West London and Slough, Greater Manchester and Cardiff and Newport. 

The primary economic value of data centres is their role in enabling digital transformation across all sectors of the economy, allowing businesses to benefit from digital products and services that allow them to operate and be more efficient and productive. Although the wider economic impact induced and enabled by data centres is beyond the scope of the report, the fact that almost every job in the UK is reliant on a data centre should not go unnoticed and should be a key consideration for national and local policymakers reading this report. 

Download our report here

Key findings

According to the report’s analysis, data centres are currently contributing: 

• £4.7 billion in Gross Value Added (GVA) annually to the UK economy. 
• 43,500 jobs across the UK economy. 
• £640 million in tax revenue to the exchequer. 

However, as technology continues to evolve, with significant advancements in AI and emerging technologies, the demand for data centres is set to increase at a much faster rate than it ever has before, with projections of future growth at between 10-20% a year. 

techUK’s analysis emphasises that if the UK can increase data centre supply above its recent growth rate of 10% to 15% a year, this could have a transformative impact on the sector and wider UK economy by 2035, unlocking:

• A GVA boost: £44 billion additional GVA between 2025-35 from the construction and operation of data centres
• An employment boost: 40,200 additional jobs directly employed in (often high-paid) data centre operational roles by the year 2035; 18,200 additional jobs directly employed in data centre construction roles over the period 2025-35
• A tax boost: an additional £9.7 billion in tax revenue generated by the industry.   

These figures highlight the industry’s immense potential to spur national and regional growth, drive innovation, and support high-quality jobs throughout the country. If this national and regional economic opportunity is to be realised, it is essential the broader data centre policy opportunities and challenges are fully understood.

Click here for the full press release