One year ago today, 12 September, the UK government designated data centres as critical national infrastructure (CNI). This led to the industry being thrust into the public consciousness and, over the past twelve months, there has been greater public interest – both good and bad – into these facilities, what they do and how they work.

This was the first CNI classification in nearly a decade and was designed to protect critical data, particularly as AI and compute continue to surge in demand. This type of classification means that data centres are classified the same way as water, energy and emergency service systems. They now receive greater support from the UK government, which was reflected in their earlier infrastructure strategy announcement, to better protect facilities from cyberattacks, power outages or environmental disasters.

One year on and we’re considering what’s next. As the data centre industry continues to evolve, Pure Data Centres Group CEO, Dame Dawn Childs, shared her insights with us on how the UK government can work with the data centre industry and how the country can set itself apart.

Economy, employment and confronting the ‘energy crisis’

After the designation, those who have benefitted in the data centre industry have been the ones who could demonstrate support for local and regional regeneration. Dame Childs explained how Pure DC is working towards this goal.

“We’re helping deliver the nation’s desire for a digitised future while demonstrating, through public/private partnership, with future-focused local authorities like Brent, that data centres don’t need to come at the expense of the local communities where they’re built, or of a sustainable future,” she said.

“As data centres become a more common part of our landscape, their role in the economic, employment and community story needs to be better understood if the sector is to avoid NIMBYism.”

Alongside the innovative progress the industry has made over the past year, fearmongering and NIMBYism – opposition to projects, or ‘not in my backyard’ – remains a critical issue for the industry in the UK. This is especially poignant recently, given recent debates over data centre water use.

To mitigate this, Dame Childs suggested that legacy concerns, particularly concerning data centre consumption of natural resources and energy, must be addressed.

“Far from being energy guzzlers, data centres can become part of the solution,” she noted. “The CNI designation could be more of a catalyst for increased collaboration between grid infrastructure, DESNZ (Department for Energy Security and Net Zero) and DSIT (Department for Science, Innovation and Technology), providing the opportunity to release renewable excess energy to power grids in stable loads. In turn, this reduces reliance on fossil fuel, eventually bringing energy prices down for all users from data centres to private households.”

Energy costs are again a topical issue across the country, which Dame Childs said “needs to be addressed urgently”. According to DESNZ, H1 2024 saw the UK’s domestic prices as the fourth most expensive in Europe, alongside industrial energy costs per kWh being eleven pence higher than the second-most expensive country.

“Ignoring the cost of energy runs a very real risk of making the UK less attractive for investors,” Dame Childs added. “Some data centre constructors are already confirming investors are choosing alternative overseas locations – and, without data centres, there is no AI revolution, no domestic expertise and a digitised future reliant on overseas capability and capacity.”

The AI leadership bid

This year, the UK has clearly understood that data centres lie at the heart of the country’s AI ambitions. It is continuing with its plans for AI Growth Zones, a critical part of the AI Opportunities Action Plan, to develop and commercialise AI technologies and support the infrastructure required to run it.

Ultimately, the UK is eager to become a leader in Sovereign AI – developing the infrastructure, data and models required to control and develop AI within the country, instead of relying on international figures.

“Besides the obvious security and regulatory imperatives, Sovereign AI supported by domestic infrastructure provides two benefits,” Dame Childs explained. “First, favouring UK constructors and operators allows British companies to develop expertise, leads to greater innovation, bridges skills gaps and builds the knowledge required to lead Europe’s AI charge. Equally, over the longer-term, it means we can start to export these same capabilities overseas, increasing UK revenue, job security and soft influence.

“While collaboration across regions is important, this cannot be at the expense of sovereign expertise. Thankfully, the AI Action Plan outlined an increased effort to support domestic AI talent, likely fuelled by the CNI designation.”

The government continues to support the UK data centre industry, collaborating with industry leaders to ensure greater energy grid resilience, net zero mandates and local planning for faster and more sustainable data centre builds.

“The UK has been proactive in acknowledging the importance of AI – from the Bletchley Park AI Safety Summit to consultations with DSIT, the Government has demonstrated ambition and realism in its approach,” Dame Childs said.

However, skills gaps across the wider technology industry are still very much a concern and could see the UK fall further behind its European counterparts if not addressed.

“There is a huge opportunity to both fuel our AI future and reskill a workforce. More programmes to enthuse the next generation of data centre talent, from sustainability professionals to physical builders and engineers  would be welcome,” Dame Childs added. “More initiatives to bring in post-graduate talent, returners, second careers switches, veterans, or attract existing workforces from other industries need to be implemented to plug gaps at scale and pace.”

Setting the UK up for sustainable success

Ensuring that the UK can offer sustainability, security and sovereignty simultaneously is a challenge, but it is hoped that the CNI designation will continue to be instrumental in creating greater security and resilience moving forward.

For data centres, alternative fuels like hydrotreated vegetable oil (HVO) and biomethane are being touted as a way to prioritise sustainability across the industry. This is in addition to solar power, closed-loop water cooling, living walls and recycled construction materials.

“Innovation in sustainability is happening at pace, with the data centre industry becoming an enthusiastic and successful testing ground for the latest and most ingenious advances,” Dame Childs said.

“Sovereignty is the way the Government ties security and sustainability together. UK-based workforces understand the resilience and net zero challenges of our landscape most intimately. Only by nurturing this talent can we adopt a UK-centric, longer-term mindset to data centre innovation.”

Looking ahead, it’s clear that the UK will remain a unique data centre market, but it has a lot more potential. The country’s cutting-edge data centres could lead in sustainability, with new carbon-saving technologies being deployed across all aspects of construction and operation.

For Dame Childs, the issue of limited land space in the UK requires the data centre industry in the country to look beyond innovation and consider community impact.

“It’s here we differ most significantly from the likes of US and China,” she said. “Due to proximity, our data centres must demonstrate benefits to local communities. These are central to achieving planning on our crowded island – especially in a future requiring data centres in many more urban environments.

“Examples include heat waste being redirected toward community hubs such as housing developments or leisure centres, grid co-investment and increased biodiversity and air quality through green space development surrounding, or even a part of, the data centre build itself.”

She added: “We are beginning to turn the tide of perceptions that see data centres as energy-hungry and waste-intensive. The next 12 months could prove crucial to changing the perception of data centres within the communities in which they operate.”

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