Data Center Bytes

The UK government published on April 1 a policy statement setting out its proposals for the much-anticipated Cyber Security and Resilience Bill (the Bill). The proposals include bringing data centers and managed service providers within scope of the United Kingdom’s cybersecurity regulatory framework, strengthening supply chain obligations for designated operators of essential services, updating technical security standards, and new executive powers for the UK government to direct regulated entities in relation to a specific cyber incident or threat.

The convergence of three disruptive forces—(1) migrations from on-premises data centers to the cloud, (2) the increased focus on connected device and digital solutions, and (3) the explosive rise of generative AI—has resulted in a race to finance, design, build, power, and operate data centers to support them. This growing demand for data centers is prompting significant regulatory, operational, and infrastructure developments throughout the world, including recent initiatives and investments in the United States, Europe, and the Middle East that underscore this growing momentum.

We are closely following the recent announcement by France and the UAE regarding their €30 billion–€50 billion investment to build Europe’s largest AI data center in France with up to 1 gigawatt of capacity. The announcement underscores a broader AI agreement between the two nations, aiming to boost the AI infrastructure and technology of both. This project aligns with broader European efforts to strengthen AI capabilities and compete globally, supported by substantial private and public investments.