Data centres to gain Critical National Infrastructure designation

Data centres across the UK will be designated as Critical National Infrastructure, Technology Secretary Peter Kyle has announced, in recognition of their increasingly important role in modern life.

Data housed and processed in UK data centres, including medical records and financial data, is less likely to be compromised by adverse weather or cyber attacks under the new designation, which puts on an equal footing as water, energy and emergency services systems. Critical National Infrastructure status will also deter cyber criminals from targeting data centres, given the added protections and contingencies that can be put in place.

Technology Secretary Peter Kyle said:

“Data centres are the engines of modern life, they power the digital economy and keep our most personal information safe.

“Bringing data centres into the Critical National Infrastructure regime will allow better coordination and cooperation with the government against cyber criminals and unexpected events.“

The new protections will also boost business confidence in investing in data centres in the country, an industry which already generates an estimated £4.6 billion in revenues a year. In Stockport, Kao Data are currently bringing forward a £350 million data centre (pictured), regenerating a former industrial estate to help deliver the computing power needed to support growth in Greater Manchester’s tech, digital and AI industries. Kao Data CEO, Doug Loewe, has welcomed the new designation for data centres. He said:

“Kao Data is delighted to see the Government’s announcement naming data centres as critical national infrastructure, fulfilling a pledge made in the 2024 Labour manifesto.

“This announcement comes at a crucial inflection point for the sector, with demand for data centres rising significantly due to the growth of AI. It signals the UK’s commitment to building sustainable infrastructure fit for an AI-driven future.

“Kao Data believes data centres can play a key role in regenerating former industrial sites, contributing to economic renewal without the need to relax planning permissions or build on greenbelt land. 

“Today’s announcement recognises the significant opportunities that new data centres can bring to the UK economy, but this should be viewed as just the first step. We look forward to working closely with the Government and industry peers to develop a comprehensive, joined up UK data centre and energy strategy.

“The Government’s move highlights the growing importance of data centres to the UK economy. Kao Data will soon break ground on a new data centre in Stockport, Greater Manchester. Designed specifically for AI, this project represents an inward investment of £350 million into the region and is expected to boost Stockport’s local economy by £155 million during its construction, according to an independent report from Nicol Economics.

“Further, this will be the largest data centre in the North of England, not only rebalancing the UK’s data centre cluster away from London and the South East but also reinforcing the UK’s position as a global leader in AI and data centre capacity.”