Privacy: choosing the right data centre

Mike Hoy at Pulsant explains how data sovereignty considerations provide “sticks” and “carrots” that should influence data centre purchasing choices

 

Data sovereignty has rapidly become a critical consideration for organisations evaluating and selecting data centre solutions. At its core, data sovereignty is the principle that data is subject to the laws and governance structures of the country in which it is physically stored or collected. This principle is embedded deeply into two foundational legislative instruments: the Data Protection Act 2018 (DPA 2018) and the UK General Data Protection Regulation (UK GDPR).

 

Both the DPA 2018 and the UK GDPR establish mandatory standards for how personal data must be handled, but they go beyond that. These laws define the standard of sovereignty and shape the processes surrounding the collection, storage, access, and processing of personal data.

 

Consequently, the selection of a data centre provider is no longer just a matter of performance metrics or operational efficiency. Instead, it’s a decision heavily influenced by regulatory compliance and the ability of the provider to support the broader digital transformation goals of a business.

 

This consideration becomes especially important when organisations seek to harness the potential of emerging technologies, particularly artificial intelligence (AI) and machine learning (ML). These technologies are data-intensive and require vast amounts of computing power. They demand a digital infrastructure that can handle complex processing workloads in real time.

 

 

The growth of UK-based data centres

UK-based high-performance data centres are emerging as essential to this transformation. These facilities offer powerful computing capabilities combined with localised data handling, resulting in significantly reduced latency and faster processing speeds. By ensuring that data remains close to its point of origin, these centres support more agile, secure, and compliant technological innovation.

 

In parallel with this trend, UK-based private cloud platforms are gaining traction as a strategic enabler for organisations looking to maintain data sovereignty while remaining agile in a competitive digital environment. These platforms are built on networks of data centres that are not only physically located within the UK but also owned and operated by domestic entities.

 

This domestic control provides peace of mind, particularly when combined with access to secure partner ecosystems and direct, high-speed interconnections to public cloud providers. For organisations, this translates into more control, better predictability around data transfer costs, and simpler compliance with increasingly complex data protection regulations.

 

 

Sticks: avoiding financial and reputational risks

Put simply, the ‘stick’ element of data sovereignty lies in the serious consequences for non-compliance. The UK’s Information Commissioner’s Office (ICO) has made it clear that failing to properly manage the transfer of personal data, particularly to jurisdictions outside the UK that do not have adequate data protection frameworks, can result in heavy penalties. These fines can reach up to £17.5 million or 4% of a company’s global annual turnover, whichever is greater.

 

These are not hypothetical threats; they are actively enforced, and they highlight the very real financial and reputational risks associated with poor data governance.

 

What many businesses may not fully realise is that these risks don’t just apply to where data is stored, but also to how it moves. Data in transit when being transferred between servers, centres, or even across international boundaries falls under the same stringent scrutiny.

 

And with the UK’s upcoming Data Protection Bill set to introduce even tighter restrictions on data flows and increased responsibilities for data controllers and processors, the pressure to adopt robust sovereignty practices is only going to intensify.

 

 

Carrots: the benefits of compliance

However, the ‘carrot’ on offer is equally compelling and far more constructive. Organisations that invest in sovereignty-conscious infrastructure and best practices aren’t just ticking a compliance box; they are unlocking the ability to innovate more quickly and confidently.

 

Keeping data processing geographically close to its source not only meets regulatory requirements, but it also reduces the reliance on distant infrastructure that may be slower or less secure. The result is improved performance, lower latency, reduced operational risk, and stronger overall resilience.

 

These gains can be transformational for businesses, particularly those operating in sectors where agility, speed, and security are essential to competitiveness.

 

In addition to these benefits, privacy-preserving computing (PPC) models are providing organisations with additional assurance. The infrastructure behind these models is increasingly being viewed not just as a support system, but as a vital part of a company’s core value proposition.

 

 

Data sovereignty: a strategic differentiator

In this evolving landscape, data sovereignty is no longer just a compliance requirement or a legal consideration. It is becoming a strategic differentiator an asset that enables businesses to manage risk more effectively, embrace innovation with confidence, and build a more robust, future-ready digital foundation.

 

Those making data centre purchasing decisions must consider sovereignty not merely as a legal obligation, but as a pathway to enhanced performance, better control, and sustained competitive advantage.

 

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 Mike Hoy is CTO at Pulsant

 

Main image courtesy of iStockPhoto.com and IR_Stone