TECHNICAL
Energy It is no secret that the provision of data centre space at scale – like all productive industries – requires a lot of power, and the sector faces significant challenges in securing timely grid connections and appropriately priced clean energy. The industry continues to make strides to secure dedicated, low and carbon- free energy supply. For example, some data centre owners are procuring Power Purchase Agreements (PPAs) with suppliers of renewable energy, helping to unlock additional renewable capacity on the grid and contributing to the security of supply pricing, while hyperscalers are starting to fund the building of on- site renewable energy power plants. In addition, there are further opportunities for data centre developers and investors to
This article - developed by Henham Strategy and techUK, in partnership with its members - makes clear the economic impact, and the potential to boost the positive impact, of data centres on the UK economy. 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 goes beyond the scope of this analysis, 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. Combining both robust quantitative analysis with impactful qualitative insights shared by techUK’s members and policymakers in national and regional governments, the economic importance of data centres to the UK economy is clear. Our analysis suggests that, on an annual basis, data centres are contributing: n £4.7 billion in GVA to the UK economy n 43,500 jobs in the UK economy n £640 million in tax to the exchequer To unlock further innovation and tech- led growth fuelled by the continued advancement of AI and emerging technologies, additional data centre capacity and capability are required. If the UK can increase data centre capacity above its recent trend growth rate – from 10% a year to 15% a year – it
n A £9.7 billion additional tax revenue generated by the industry over the period 2025–35 The scale of this potential national economic impact is mirrored when looking to the nations and regions. By seizing the role of data centres, which will support well paid jobs and greater innovation, there is a real opportunity to deliver local growth right across the UK. 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. Aligned to the Government’s mission-led approach, and in thematic areas that cross different Whitehall departments, the industry has been leading on important initiatives that are driving positive outcomes.
will result in a: n £44 billion
additional GVA between 2025-2035 from the construction and operation of data centres n 40,200 additional jobs directly employed in (often high-paying) data centre operational roles n 18,200 additional jobs directly employed in data centre construction roles over the period 2025–35
Volume 48 No.23 SEPTEMBER 2026
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