- The UK can learn from Portugal’s cable-access and STEM skill strategy, and Germany’s €500 billion infrastructure clarity, to bolster its data centre landscape.
- With market access and strong universities, the UK needs faster grid connection and policy follow-through to unlock up to £44 billion in economic value.
What happened
A leading data centre expert has drawn lessons from Portugal and Germany to suggest how the UK could cement its position in the global digital infrastructure race. Portugal benefits from submarine cable routes, renewable energy and STEM-focused education, while Germany’s €500 billion infrastructure plan offers long-term clarity for investors.
UK Prime Minister Rishi Sunak recently announced £1 billion to boost national compute capacity. The government’s Industrial Strategy also includes grid upgrades and regulatory adjustments to treat data centres as national infrastructure.
Why it matters
Portugal’s success stems from aligning natural infrastructure with capital and talent development. Germany’s large-scale, disciplined public investment signals market stability. The UK already offers strong financial markets, top-tier universities and rapid data centre growth—yet lags due to long grid connection delays.
Harnessing these strengths, along with policy continuity and focus on skills, could deliver substantial economic gains. Recent analysis estimates a 5% increase in data centre capacity could generate £44 billion in value, 40,000 jobs and £9.7 billion in tax receipts by 2035.
