UK and EU: Data centres - the key issues for businesses

As demand for data processing and storage continues to surge, driven by advancements in AI and other technologies, the construction, secure operation and sustainability of data centres have become focal points for industry stakeholders and the wider global community. There are a number of challenges that arise in the context of data centres, such as increasing pressure to reduce carbon footprint, reduce energy and water usage, and recycle waste heat. Further challenges include new regulatory regimes in the EU and the UK, cyber security and data protection risks, and practical issues around constructing data centres.

These challenges highlight the need for data centres to adapt to evolving technological, regulatory and environmental landscapes to ensure that their operations are sustainable and secure. Despite the challenges, the data centre industry is set to continue to grow relentlessly across the globe to satisfy the huge and increasing demands of the digital economy and AI.

The government has recently announced ambitious plans for the UK data centre industry that will require numerous hyperscale data centres of 100MW or more to be developed. Its aim is that the UK will become a leader, as opposed to a follower, in the global data centre industry which, by its nature, is an industry where economies in different regions are in direct competition with one other. This competition is demonstrated by the recent chaos in the AI technology markets caused by the release of the latest version of the DeepSeek AI model from China in competition with models such as OpenAI’s ChatGPT.

Within this rapidly developing context, this article explores some of the main challenges and opportunities associated with data centres in relation to energy efficiency, cyber security and construction methodologies. While data centres face similar practical challenges worldwide, legal and regulatory requirements vary significantly across jurisdictions. This article focuses on the UK and EU landscapes.

Data Centres In Practice

Data centres are facilities that are used to house computer systems and associated components such as telecommunications equipment, in order to manage, process and store data. They are intricate, not only in their technical design and operation but also in the commercial and legal frameworks that support them, which involve a convergence of traditional sectors such as real estate, finance and construction, with innovative sectors such as energy, telecommunications and IT.

To read the full article click here.