The North East could lead the country in developing the next generation of data centres, a new report from sector experts suggests.
Regional tech network Dynamo CIC points to three key actions that could help the region unlock its potential as a hub for data centre and cloud services activity. Having consulted a range of people from across the North East tech sector, Dynamo points to the need to promote the region's renewable energy credentials, cooler climate and subsea connectivity; set up an innovation hub bringing together start-ups, established businesses, researchers and investors in the field, and develop more industry-academic partnerships to address a skills gap.
The Shaping the Future of Data Centres and Cloud Innovation report comes as US data centre firm QTS - owned by asset management giant Blackstone - is gearing up to build a £10bn data centre campus in Northumberland. The Government has also said it wants artificial intelligence to play a role in national renewal, and has pledged to support the rapid built out of data centres through proposed AI Growth Zones.
In identifying the North East's potential, the report's authors acknowledge that while data centres themselves do not generate significant employment, there are broader economic and skills development opportunities created in their supporting infrastructure and services.
David Dunn, chief executive officer of Dynamo North East CIC, said: "The North East is already home to key research centres and advanced data projects, including Newcastle University’s National Innovation Centre for Data and Durham University’s plans for a new supercomputing facility. At the same time, major private sector investments are being proposed that could significantly increase the region’s national and international visibility.
"However, as the report notes, real economic value will come not only from data centres themselves, but from the surrounding infrastructure, skills and partnerships they help unlock. This requires a collective effort from government, industry, universities and the wider community. By working together, the North East has the potential to lead the way in building sustainable, resilient and inclusive digital infrastructure for the future.â€
Those consulted for the report agreed the North East needs a strategy that aligns education, business and policy to create a pipeline of digital and data professionals. They said public investment should be put towards creating regionally accessible training including apprenticeships, skills bootcamps and degree programmes.
The leadership forum which informed the report was co-facilitated by Ruth Plater, CEO and founder of Newcastle-based marketing agency Radial Path, and other industry representatives. Ms Plater said: "With AI driving demand for more data centres, and the North East perfectly positioned in terms of both geographical location and access to talent, there’s no reason the Government shouldn’t place greater emphasis on making the region a leader in data centre technologies.
"We have all the ingredients to be a global hub in this space and to ensure the º£½ÇÊÓƵ capitalises on the bountiful opportunities that the rise of AI and new cloud technologies will present.â€
