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Brexit Likely to Pause U.K. Data Center Build-outs

Could Brexit spell turbulence for cloud computing? Larry Dignan reporting in ZDNet: “Get ready for the pause in U.K. data center build-outs. The only certainty about the United Kingdom’s move to exit the European Union is the cloud computing ecosystem is going to see some turbulence and uncertainty ahead… U.K. data center plans by large cloud providers may go on hold. U.S. cloud providers are building out data centers in the European Union as well as the U.K. Now that the U.K. has decided to leave the EU there will be new laws and regulations in place for cloud providers. Any plans to build data centers in the U.K. could be paused.”

—  A Likely scenario says Dignan: “The Brexit simply makes Ireland a better country to carry out financial services and technology. Ireland also becomes the hub for Western European cloud operations.”

“EU to shrink as UK isles become more distant” writes Enrico Signoretti in the Register: “How many European enterprises will put their data in the UK now? I’m sure less than today. Eventually, the UK will no longer be regulated by the EU and privacy laws could change and become more US friendly.”

By CircleID Reporter

CircleID’s internal staff reporting on news tips and developing stories. Do you have information the professional Internet community should be aware of? Contact us.

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