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Data centres powering the UK’s digital economy have been officially designated as Critical National Infrastructure (CNI), placing them on par with sectors like energy and water in terms of government protection and strategic importance. This announcement by Technology Secretary Peter Kyle is part of a broader initiative to safeguard the nation’s digital backbone against growing cyber threats and IT failures.

The decision marks the first time in nearly a decade that a new sector has been given CNI status. The move comes as part of a national strategy to strengthen the UK’s digital infrastructure, particularly following notable incidents such as this summer’s cyber attack on GP software systems, which disrupted NHS operations.

By classifying data centres as CNI, the government is signalling its commitment to enhancing the resilience of this essential industry. This is timely, given the growing reliance on data centres, which manage everything from NHS records to financial data and personal smartphone information. Under the new status, data centres will receive enhanced support, including direct access to security agencies like the National Cyber Security Centre in times of crisis, and prioritized assistance from emergency services during outages or attacks.

Technology Secretary Peter Kyle emphasized the importance of this decision, stating, “Data centres are the engines of modern life, they power the digital economy and keep our most personal information safe. Bringing data centres into the Critical National Infrastructure regime will allow better coordination and cooperation with the government against cyber criminals and unexpected events.”

Coinciding with this announcement is news of a proposed £3.75 billion investment in the construction of Europe’s largest data centre, set to be built in Hertfordshire. Submitted by DC01UK, this project is poised to create over 700 local jobs and support nearly 14,000 jobs nationwide, further cementing the UK’s status as a leader in digital infrastructure.

As the UK already boasts the highest number of data centres in Western Europe, the new designation is expected to boost business confidence, attracting further investment to this thriving sector. The industry currently generates around £4.6 billion in annual revenues, and this latest move is projected to foster even more growth by creating a safer environment for businesses to operate.

This development also underscores the government’s proactive response to rising cyber threats, which have the potential to severely disrupt national life. The government’s Cyber Security and Resilience Bill, announced earlier this year, will mandate essential service providers, including data centres, to secure their supply chains and protect against cyber attacks. Recent high-profile incidents, like the CrowdStrike hack that disrupted NHS appointment systems, have highlighted the urgency of these measures.

Key industry leaders have expressed strong support for the government’s actions. Bruce Owen, UK Managing Director of digital infrastructure provider Equinix, praised the decision, noting the parallels between the internet and traditional utilities like water, gas, and electricity. “This designation lays the groundwork for a secure digital future,” said Owen.

Similarly, techUK’s Matthew Evans highlighted the central role of data centres in the UK’s modern economy, calling the CNI status a pivotal decision that will ensure the sector’s long-term growth and security.

With data centres now recognized as an essential pillar of the economy, the UK is positioning itself to lead in both digital innovation and cyber resilience. This move will not only strengthen the country’s ability to respond to future crises but also reinforce the confidence of businesses looking to invest in the UK’s digital infrastructure.