In the most comprehensive, first-of-its-kind look at the contribution that data provides to the UK economy, an independent report commissioned by Digital Realty reveals that the UK’s data economy is currently worth ?73.3 billion annually. This figure reflects how data is making businesses’ existing services simpler, faster and more reliable, as well as enabling them to open up new business possibilities, such as new operating models, new revenue streams and new markets to enter.
The Data Economy Report also highlights the continued contribution data brings, with growth (7.3%) outstripping the wider economy (1.8%). This growth is powered by the UK’s data centre industry – the industry creates between ?291 million and ?320 million in value every year from each data centre, with the range even higher for new data centres: ?397-?436 million in extra annual value from each new data centre.
Data centres create this value by providing and managing the infrastructure, connectivity and services that underpin success across the full range of economic activity. This includes not only I.T. and financial services, such as powering high-speed trading platforms and cloud storage services, but also other sectors such as agriculture where data allows more precise use of pesticides, better adaptation to weather trends and automation such as drones to survey crops.
Investment in the data centre foundations which enable all this is essential for the future prosperity of British businesses and the economy.
“The UK’s goal is to lead the world in creating innovative businesses, and continued growth of its data economy is vital in achieving that goal.” said Jeremy Silver, CEO, Digital Catapult. “The Data Economy Report provides a clear road map for businesses, suggesting that by investing in the right foundations, technology innovations and partners, they will grab a significant dividend.”
The ?6.2 billion added value that data centres create demonstrates the rewards to be won by businesses investing in their data infrastructure. In fact, business investment increases of 5%-11% in data infrastructure and new technologies like IoT sensors and big data analysis software could mean the difference between the UK data economy growing at its current rate and hitting ?94.6 billion by 2025 and a best case scenario in which it grows to ?101.6 billion by 2025, creating a ?7 billion per year data dividend.
“Data infrastructure and services underpin the UK’s digital economy but its value is often underestimated. With The Data Economy Report, its worth to businesses and the wider economy is apparent,” said Rob Coupland, Managing Director EMEA, Digital Realty. “We urge British businesses to invest in the right tools, infrastructure and partners to get more value out of data and take a piece of a ?101.6 billion national opportunity.”
