On December 24th 2020 - a week before the UK’s transition period with the EU was due to end - the UK & EU negotiators finally announced that a new trading agreement had been reached. The trading agreement covers the trading of goods between the UK & the EU. However, the new trading agreement does not include services or digital services. With the signing of the new treaty The Economist noted –
“Even more urgently needed is an EU data-adequacy decision to permit the free transfer of data, a crucial part of modern cross-border businesses.”
Movement of data is crucial to a modern economy. Data is claimed to generate GBP £174 billion of value to the UK - according to the CBI (Confederation of British Industry). In blog 9.0 DCP considers the current status of data transfers and the effects of an agreement that is likely to be made.
The UK and the EU have agreed a temporary fix which will allow UK & EU companies to share data after the January 1st 2021 deadline – giving limited time to negotiate a longer term settlement to allow the free transfer of data. The EU and the UK have agreed that companies & public bodies cannot regulate data to be stored in a specific jurisdiction - although there will be some exemptions.
In the Summary Box below DCP outlines the broad outline of the UK & EU TCA agreement that has been agreed:
Summary Box - The UK & EU Trade & Cooperative Agreement (TCA) consists of the following parts:
Tariff & Quota free trade & goods import/export – Goods are not subject to tariffs, but there may be non-tariff barriers, including regulation, checks & paperwork required by member states and regulatory approvals for some products.
Data Adequacy & personal data transfer between the UK & the EU – The UK is to be assessed to determine whether it offers an equivalent level of data protection to the EU. If not, then there will need to be further measures introduced.
The Digital Trade Chapter – The TCA, uniquely for an EU document, has created a Digital Trade Chapter, to cater for goods or services sold over the internet with both sides obliged to encourage cross border data flows. Data cannot be required to be stored in a specific jurisdiction. Electronic contracts and signatures are to be given the same status as physical contracts & signatures. There is an obligation for regulators on both sides to cooperate on emerging technology such as AI. For telecoms & net neutrality there will continue to be access granted to networks in the UK & the EU. For the UK the Roam Like At Home roaming agreements are no longer applicable from the 1st January 2021. UK MNOs will be able to change their tariffs but will need to be transparent in applying any changes. There are obligations for cooperation on cybersecurity.
Services, Professional services & movement of workers – Services are not covered under the tariff & quota free trade agreement, as services have not been integrated within the EU Single Market. Mostly no visa requirements are required for worker short trips but can be subject to member state restrictions. There is no agreement on the mutual agreement of professional services – which is subject to each individual state.
Worker movements to provide services is allowed over a 90 day period in a 180 day period.
Financial services – Under the UK-EU TCA there is an agreement for regulators to cooperate and also to work towards a future MoU (Memorandum of Understanding).
It is striking that many segments, such as financial services, have yet to implement a defined agreement, and a data transfer agreement between the UK & EU is dependent on the UK meeting an adequacy decision between the two trading blocks.
The Current Status of Data transfers & the importance of privacy standards
As the final agreement for personal data transfer is still to be made there will be another deadline by the middle of the year for an Adequacy Decision to be made.
To date the UK has adapted the EU rulings on data privacy standards enshrined in the GDPR (General Data Protection Regulation). The EU GDPR regulates data protection and the use of personal data & privacy.
In the UK the EU GDPR has been replaced by the UK GDPR, which has been enshrined in an Act of Parliament and follows the key principles, rights and obligations enshrined by the EU version. The UK GDPR legislation has also been combined with the UK Data Protection Act.
According to the UK ICO (Information Commission’s Office) the treaty agreed with the UK & the EU on December 24th 2020 will allow personal data to flow freely from the EU/EEA to the UK for up to a 6 month period (to the end of June 2020).
For this period businesses, public bodies (and law enforcement bodies) will continue to receive personal data. The ICO recommends that businesses will put in place alternative transfer mechanisms to ensure that free personal data flows can continue after June 2020.
The EU in the meantime is making an “adequacy assessment” on the UK data protection regime to ensure that local protection laws will be in line with the EU, which will determine the future freedom of data movement. Personal data can flow from the EU to the UK for a 4 month period and can be extended by an additional two months (until June 2020) under mutual agreement.
The intention is for the UK to have time to negotiate a new UK data protection regime and reach an Adequacy Decision under Article A5 of the GDPR to be agreed by the European Commission (EC). If no Adequacy Decision is agreed the UK will become a 3rd Country for the GDPR.
Personal data transfer will then be considered as restricted transfers and EU data exporters will have to take further measures to protect personal data. The measures that can be taken include measures including EU Standard Contractual Clauses or implement Binding Corporate Rules (BCR).
The UK is not able to issue Article 46 or 49 adequacy decisions or make approved safeguards for personal data movement to other 3rd countries unless the decision is approved by the EC.
According to Giulio Coraggio, Partner & Head of Technology, at the law firm DLA Piper, the likelihood of an agreed personal data protection between the UK & the EU is not certain, as mentioned in a blog post published on December 27th 2020 shown in the Summary Box below:
Summary Box – Uncertainty for the UK & EU personal data protection agreement - predicted by DLA Piper
The upcoming months are still uncertain, and the EU and UK authorities will still have a hard pivot during this semester. At least businesses have been given additional 6 months to get ready for the worst i.e., the lack of an adequacy decision which still is an option on the table. And, due to the attitude of the latest arrangements around Brexit, it appears likely that the circumstances will remain unclear up to the very last days of the transitional period… Giulio Coraggio, Partner & Head of Technology, in DLA Piper, How the privacy terms of the Brexit deal impact transfers of data, 27th December 2020.
The UK faces restrictions on its “designated powers” which may indicate that the EU is wary of the actions that may be taken by the UK which may undermine EU safeguards on personal data privacy and wishes to prevent the introduction of additional measures.
The June 2020 deadline is likely to be a new crunch date - when the decision on whether the UK data protection regime will be deemed to be adequate or not with the EU GDPR.
UK Data Centre & Cloud segment investment & growth since 2016
Although there is some uncertainty over data privacy rulings investment in cloud & UK Data Centres has continued. Since the 2016 result of the EU referendum the UK Data Centre & Cloud segments have displayed continued growth and resilience. There has been a series of investments made by CSPs (Cloud Service Providers) in new UK Cloud availability zones in the UK since 2016, shown in the table in Figure 1 below:
Figure 1 – A table showing the CSP investment in the UK market since 2016 (Source DCP)
|
Cloud Service Provider |
Cloud availability region |
|
Google Cloud Platform (GCP) |
London |
|
IBM Cloud |
London 2, 4, 5 & 6 |
|
AWS Cloud |
London |
|
Microsoft Azure Cloud |
UK South (London) & UK West (Cardiff) |
|
Oracle Cloud |
UK South (London) & UK West (Cardiff) |
|
Alibaba Cloud |
UK (London) |
All of the major CSPs have formed their own cloud region in the UK, based around the London area with both Microsoft & Oracle providing a secondary cloud region in Cardiff/Newport (Wales) at the former NGD Centre.
Most cloud investments have come since 2016 and the Brexit referendum. For example, IBM Cloud has opened 4 new cloud Data Centres from 2016 to 2017 and AWS opened its first & second cloud region in London at the end of 2016 followed by a third region in 2018.
The CSP investments in the UK have been made at the same time as a wider investment in Europe, with cloud regions being built in a series of European countries in a range of cities including - Paris, Berlin, Stockholm, Madrid, Milan & Oslo. The expansion has been driven by enterprise and public sector users addressing their data sovereignty concerns. CSPs have across Europe been investing to resolve latency and sovereignty issues.
UK third- party Data Centre space and power has also increased since 2016. DCP has tracked the expansion of UK Data Centre raised floor space over the period from 2015 to 2020 shown in the chart in Figure 2 below:
Figure 2 – A chart showing the growth in UK Data Centre raised floor space & power from 2015 to 2020 – in ‘000s of m2 & in MW
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
The UK market remains the largest Data Centre country market in Europe, with the London & Inner M25 area being among the largest city cluster of Data Centre space (behind the Frankfurt & Frankfurt am Main cluster) but ahead of the Paris & Amsterdam Data Centre clusters.
DCP forecasts that the UK Data Centre revenues is to grow by 39 per cent from the end of 2020 to the end of 2025, equivalent to a CAGR (Compound Annual Growth Rate) of 7.8 per cent per annum. But London is forecast to be behind the Data Centre revenue growth rates in Paris, Frankfurt, Dublin, Amsterdam and Dublin. The percentage increase in Data Centre revenues by each city from the end of 2020 to the end of 2025 shown in the chart in Figure 3 below in per cent:
Figure 3 – A chart showing the forecast increase in Data Centre revenues for selected cities across Europe – including London - from the end of 2020 to the end of 2025 – in per cent
The UK remains the most mature Data Centre market in Europe. It is inevitable that growth rates are due to slow over time – although there is a wide range of space forecast to enter the UK market.
A series of new UK facilities are bring planned. Most new space due to enter the market from 2022 onwards. A list of the key planned new UK Data Centre developments is shown in the table in Figure 4 below:
Figure 4 – A showing the UK Data Centre facilities planned from 2020 onwards
|
Data Centre Provider |
Location |
Space |
Power |
Proposed launch |
|
Global Data Centers |
Dagenham, UK |
24,000 |
60 |
End 2020 |
|
Ark Data Centres |
Hayes, UK |
56,000 |
60 |
2022 |
|
Global Data Centers |
Hemel Hempstead, UK |
9,800 |
24 |
2022 |
|
Ark Data Centres |
London, UK |
2,000 |
4 |
2021 |
|
Ark Data Centres |
Surrey, UK |
30,000 |
30 |
2021 |
|
Ark Data Centres |
London, UK |
15,000 |
30 |
2023 |
|
CyrusOne |
Slough, UK |
10,353 |
18 |
2021 |
|
CyrusOne |
Slough, UK |
7,432 |
18 |
2022 |
|
Equinix |
Slough, UK |
2,200 |
4 |
2021 |
|
Equinix |
Slough, UK |
5,700 |
9 |
2022 |
|
Equinix |
Manchester, UK |
2,200 |
4 |
2022 |
|
Equinix |
Manchester, UK |
2,200 |
4 |
2023 |
|
Iron Mountain |
Slough, UK |
1,000 |
2 |
2021 |
|
Iron Mountain |
Slough, UK |
4,000 |
9 |
2022 |
|
NGD Data |
Cardiff, UK |
6,000 |
10 |
2022 |
|
xScale |
Slough, UK |
5,000 |
10 |
2022 |
|
Virtus Data Centre |
Slough, UK |
5,500 |
10 |
2023 |
|
Totals: |
188,385 m2 |
306 MW |
Source: DCP
There are a series of new Data Centre facilities planned in the UK, despite the changes from Brexit.
Conclusions - Brexit remains a small part of the Data Centre purchase decision
Although the total potential UK Data Centre space under development is more than other European Countries the percentage growth rate is less in part due to the size of the UK installed base of Data Centre capacity. And the growth in capacity over the past 4 year period and future plans for new Data Centres indicate that growth will continue.
But Brexit may be a complicating factor for companies who wish to trade in Europe as well as the UK. The outcome of the trading arrangement negotiations with the EU may complicate the future treatment of personal data flows from the UK to Europe. Companies wishing to trade in Europe may begin to host personal data within the EU, using the UK purely to host data for UK clients only - with the UK becoming less of a European data hub as a result.
The UK market remains the largest Data Centre country market in Europe, with the London & Inner M25 area being among the largest city cluster of Data Centre space (behind the Frankfurt & Frankfurt am Main cluster) but ahead of the Paris & Amsterdam Data Centre clusters.
DCP forecasts that the UK Data Centre revenues is to grow by 39 per cent from the end of 2020 to the end of 2025, equivalent to a CAGR (Compound Annual Growth Rate) of 7.8 per cent per annum. But London is forecast to be behind the Data Centre revenue growth rates in Paris, Frankfurt, Dublin, Amsterdam and Dublin. The percentage increase in Data Centre revenues by each city from the end of 2020 to the end of 2025 shown in the chart in Figure 3 below in per cent:
Figure 3 – A chart showing the forecast increase in Data Centre revenues for selected cities across Europe – including London - from the end of 2020 to the end of 2025 – in per cent
The UK remains the most mature Data Centre market in Europe. It is inevitable that growth rates are due to slow over time – although there is a wide range of space forecast to enter the UK market.
A series of new UK facilities are bring planned. Most new space due to enter the market from 2022 onwards. A list of the key planned new UK Data Centre developments is shown in the table in Figure 4 below:
Figure 4 – A showing the UK Data Centre facilities planned from 2020 onwards
|
Data Centre Provider |
Location |
Space |
Power |
Proposed launch |
|
Global Data Centers |
Dagenham, UK |
24,000 |
60 |
End 2020 |
|
Ark Data Centres |
Hayes, UK |
56,000 |
60 |
2022 |
|
Global Data Centers |
Hemel Hempstead, UK |
9,800 |
24 |
2022 |
|
Ark Data Centres |
London, UK |
2,000 |
4 |
2021 |
|
Ark Data Centres |
Surrey, UK |
30,000 |
30 |
2021 |
|
Ark Data Centres |
London, UK |
15,000 |
30 |
2023 |
|
CyrusOne |
Slough, UK |
10,353 |
18 |
2021 |
|
CyrusOne |
Slough, UK |
7,432 |
18 |
2022 |
|
Equinix |
Slough, UK |
2,200 |
4 |
2021 |
|
Equinix |
Slough, UK |
5,700 |
9 |
2022 |
|
Equinix |
Manchester, UK |
2,200 |
4 |
2022 |
|
Equinix |
Manchester, UK |
2,200 |
4 |
2023 |
|
Iron Mountain |
Slough, UK |
1,000 |
2 |
2021 |
|
Iron Mountain |
Slough, UK |
4,000 |
9 |
2022 |
|
NGD Data |
Cardiff, UK |
6,000 |
10 |
2022 |
|
xScale |
Slough, UK |
5,000 |
10 |
2022 |
|
Virtus Data Centre |
Slough, UK |
5,500 |
10 |
2023 |
|
Totals: |
188,385 m2 |
306 MW |
Source: DCP
There are a series of new Data Centre facilities planned in the UK, despite the changes from Brexit.
Conclusions - Brexit remains a small part of the Data Centre purchase decision
Although the total potential UK Data Centre space under development is more than other European Countries the percentage growth rate is less in part due to the size of the UK installed base of Data Centre capacity. And the growth in capacity over the past 4 year period and future plans for new Data Centres indicate that growth will continue.
But Brexit may be a complicating factor for companies who wish to trade in Europe as well as the UK. The outcome of the trading arrangement negotiations with the EU may complicate the future treatment of personal data flows from the UK to Europe. Companies wishing to trade in Europe may begin to host personal data within the EU, using the UK purely to host data for UK clients only - with the UK becoming less of a European data hub as a result.
The UK market remains the largest Data Centre country market in Europe, with the London & Inner M25 area being among the largest city cluster of Data Centre space (behind the Frankfurt & Frankfurt am Main cluster) but ahead of the Paris & Amsterdam Data Centre clusters.
DCP forecasts that the UK Data Centre revenues is to grow by 39 per cent from the end of 2020 to the end of 2025, equivalent to a CAGR (Compound Annual Growth Rate) of 7.8 per cent per annum. But London is forecast to be behind the Data Centre revenue growth rates in Paris, Frankfurt, Dublin, Amsterdam and Dublin. The percentage increase in Data Centre revenues by each city from the end of 2020 to the end of 2025 shown in the chart in Figure 3 below in per cent:
Figure 3 – A chart showing the forecast increase in Data Centre revenues for selected cities across Europe – including London - from the end of 2020 to the end of 2025 – in per cent
The UK remains the most mature Data Centre market in Europe. It is inevitable that growth rates are due to slow over time – although there is a wide range of space forecast to enter the UK market.
A series of new UK facilities are bring planned. Most new space due to enter the market from 2022 onwards. A list of the key planned new UK Data Centre developments is shown in the table in Figure 4 below:
Figure 4 – A showing the UK Data Centre facilities planned from 2020 onwards
|
Data Centre Provider |
Location |
Space |
Power |
Proposed launch |
|
Global Data Centers |
Dagenham, UK |
24,000 |
60 |
End 2020 |
|
Ark Data Centres |
Hayes, UK |
56,000 |
60 |
2022 |
|
Global Data Centers |
Hemel Hempstead, UK |
9,800 |
24 |
2022 |
|
Ark Data Centres |
London, UK |
2,000 |
4 |
2021 |
|
Ark Data Centres |
Surrey, UK |
30,000 |
30 |
2021 |
|
Ark Data Centres |
London, UK |
15,000 |
30 |
2023 |
|
CyrusOne |
Slough, UK |
10,353 |
18 |
2021 |
|
CyrusOne |
Slough, UK |
7,432 |
18 |
2022 |
|
Equinix |
Slough, UK |
2,200 |
4 |
2021 |
|
Equinix |
Slough, UK |
5,700 |
9 |
2022 |
|
Equinix |
Manchester, UK |
2,200 |
4 |
2022 |
|
Equinix |
Manchester, UK |
2,200 |
4 |
2023 |
|
Iron Mountain |
Slough, UK |
1,000 |
2 |
2021 |
|
Iron Mountain |
Slough, UK |
4,000 |
9 |
2022 |
|
NGD Data |
Cardiff, UK |
6,000 |
10 |
2022 |
|
xScale |
Slough, UK |
5,000 |
10 |
2022 |
|
Virtus Data Centre |
Slough, UK |
5,500 |
10 |
2023 |
|
Totals: |
188,385 m2 |
306 MW |
Source: DCP
There are a series of new Data Centre facilities planned in the UK, despite the changes from Brexit.
Conclusions - Brexit remains a small part of the Data Centre purchase decision
Although the total potential UK Data Centre space under development is more than other European Countries the percentage growth rate is less in part due to the size of the UK installed base of Data Centre capacity. And the growth in capacity over the past 4 year period and future plans for new Data Centres indicate that growth will continue.
But Brexit may be a complicating factor for companies who wish to trade in Europe as well as the UK. The outcome of the trading arrangement negotiations with the EU may complicate the future treatment of personal data flows from the UK to Europe. Companies wishing to trade in Europe may begin to host personal data within the EU, using the UK purely to host data for UK clients only - with the UK becoming less of a European data hub as a result.