The latest report from techUK, which Shoosmiths has sponsored, shows the economic impact, as well as the potential to boost the positive impact, of data centres on the UK economy.
The main 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.
The contribution of data centres to the UK economy
The new report – called Foundations for the future: How data centres can boost UK economic growth – combines both quantitative analysis with qualitative insights shared by techUK’s members and policymakers in national and regional governments to outline the economic importance of data centres to the UK economy. The report shows that, on an annual basis, data centres are currently contributing:
- £4.7 billion in gross added value (GVA) to the UK economy
- 43,500 jobs in the UK economy
- £640 million in tax to the exchequer
The growth opportunity in play
The report – which takes a deeper dive on energy, sustainability, planning and skills – goes on to argue that if the UK can increase its data centre capacity above its recent trend growth rate – from 10% a year to 15% a year – it will result in a:
- £44 billion in additional GVA between 2025-2035 from the construction and operation of data centres
- 40,200 additional jobs directly employed in (often high paying) data centre operational roles
- 18,200 additional jobs directly employed in data centre construction roles over the period 2025-35
- £9.7 billion in additional tax revenue generated by the industry over the period 2025-35
On the pressing issue of the environmental impact of data centre growth, mitigating measures identified include rewarding operators with robust plans for measuring, monitoring and reporting progress on their journey to net zero. Integrating data centres into district heat networks, meanwhile, is another measure outlined in the report.
More information
For more information on our expertise with data centres, visit our dedicated webpage. Alternatively contact Liam Phillips or Chris Morris.
Disclaimer
This information is for general information purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given. Please contact us for specific advice on your circumstances. © Shoosmiths LLP 2024.