Cookie policy: This site uses cookies (small files stored on your computer) to simplify and improve your experience of this website. Cookies are small text files stored on the device you are using to access this website. For more information on how we use and manage cookies please take a look at our privacy and cookie policies. Some parts of the site may not work properly if you choose not to accept cookies.


White Space 44: The Brexit special

The UK is leaving the European Union. What impact will this have on the data center industry?

This week on White Space, we look at the result of the referendum in the UK which will likely see the country leave the European Union.

This decision – which was opposed by most representatives of the UK technology industry - will have an impact on regulation, real estate and electricity prices. It has already prompted the prime minister to resign, while the British Pound has experienced the biggest plunge since 1985.

The transition period will take at least two years. So make yourselves comfortable, ladies and gentlemen; we’re here for the long haul.

Readers' comments (2)

  • "Nationalism is an infantile sickness. It is the measles of the human race." Albert Einstein 1934

    BREXIT will bring the UK data center industry down of course, like the entire country! Who wants to do business with infants?

    Unsuitable or offensive? Report this comment

  • Data centres can be either an direct property asset of a company or indirectly associated with companies through a co-location association or a Cloud offering. The companies are themselves tied to national and international regulatory frameworks and market pressures. Why wouldn't UK's data centres be affected.
    Data centre users have one thing going for them, they are very much a global market player. The modern data centre (circa 2005) has been driven by market forces that have been global and therefore some what disconnected from national market drivers.
    There are no doubt some data centre players who have positioning data centre capacity in the UK to meet local demand from say the financial sector and may be rethinking their options in light of the BREXIT vote. There could be a down scaling of these institutions as they reposition in say a EU country, but then they may not as the British financial industry is fundamentally strong and supported by a very stable central bank. Mind you the UK may implement data regulatory polices that could be diametrically opposed to the EU and then industries who had supported their data services from the UK , may migrate away from that country. There could also be cost imposts e.g. taxes, fees etc created by transacting data between the UK and the EU that eventuates from future regulatory differences. Time will tell. Edge data centres may very well ameliorate this issue as predominately only UK data will be kept in the UK and minimal data will be transferred.
    The Code of Conduct for European Data Centres Energy Efficiency may be causality, but one cannot see why as energy efficiency is a universal pursuit of the data centre industry. The UK has been actively involved in ensuring data centre efficiency and much of that is driven by global trends, not national trends.
    The UK is a primary connection point for many trans-Atlantic submarine telecommunication cabling which is not something that is disconnected at a whim. This infers that many north American ISP's land in the UK and thus there are a significant amount of cross connect with international markets in the UK.
    The data centre industry is under going a fundamental change at the moment. A tipping point has been reached where enterprise data centres are declining as their users move to a bimodal type of model, whereby many of their new data services are delivered by cloud offerings "*aaS" and their own enterprise services are delivered from co-location data centres. This model is fluid and allows users to deliver data services without being nailed to a enterprise model of delivery. The providers have presence across Europe and the world, so there are options.
    BREXIT could turn out to be either a major disruptive influence on UK data centres for good or bad, or the industry may be like 'dark matter' and pass straight through this immediate international event without any significant interaction with the ensuring changes as it has become a fundamental part of the world digital economies whatever their politics or business development.

    Unsuitable or offensive? Report this comment

Have your say

Please view our terms and conditions before submitting your comment.



More link