Data Centers in Derby
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Derby – Resilient Midlands Digital Hub
Derby offers a compelling alternative to London for digital infrastructure, providing a low-risk, cost-effective environment. It is an excellent choice for organizations prioritizing operational stability and serving the UK's industrial heartland. This market ensures reliable performance for disaster recovery, secondary compute, and content delivery throughout the Midlands.
Derby: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid national connectivity; suitable for most enterprise and DR workloads. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Private connections are available to major hubs like Manchester and London. |
| Power Cost | ≈£0.17/kWh – as of September 2025 | Prices are competitive for the UK, supported by a diverse energy mix. |
| Disaster Risk | Low (2.1/10) – as of September 2025 | Very low exposure to significant natural hazards, enhancing uptime potential. |
| Tax Incentives | No – as of September 2025 | The UK does not offer specific tax breaks for data center development. |
| Sales Tax | 20% VAT – as of September 2025 | Standard UK Value Added Tax applies to equipment and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: The Derby market provides access to a good range of national carriers, with at least 2 data centers offering colocation services as of September 2025. While not as dense as London, the ecosystem is sufficient for building redundant network solutions.
Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Derby as of September 2025. Secure, private connections to cloud providers are established through network extensions to major hubs like London or Manchester.
Internet Exchange Points (IXPs): Public peering is not a feature of the Derby market. Interconnection is typically handled via private peering within colocation facilities or by connecting to national IXPs in London.
Bare Metal: Bare metal server options are available in the UK market, often provisioned from data centers in London or Manchester. Providers like Hivelocity can serve customers in Derby with reliable, low-latency infrastructure.
Power Analysis
Average Cost Of Power: Industrial power costs in the region are approximately £0.17/kWh as of September 2025. This pricing is in line with the national average, making it a predictable factor in total cost of ownership calculations. The UK grid features a balanced mix of renewables (40–50%), natural gas (35–45%), and nuclear power (10–15%).
Power Grid Reliability: The power grid serving the UK's primary economic centers is well-engineered and reliable. Data centers in markets like Derby are typically supported by redundant power feeds and substation diversity, ensuring high levels of uptime.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Derby is centrally located in the East Midlands, a historic hub for engineering, manufacturing, and logistics. Data centers here are positioned to serve businesses throughout the region, including Nottingham, Leicester, and Birmingham.
Regional Market Reach: From Derby, digital services can effectively reach a significant portion of the UK population with low latency. Its central location makes it an ideal point for disaster recovery sites for companies with primary operations in London or Manchester.
Tax Advantage For Data Centers: The primary financial structure is the standard 20% Value Added Tax (VAT). The UK does not offer specific tax incentives for data center construction or operation, creating a straightforward and predictable business environment.
Natural Disaster Risk
Derby has a very low natural disaster risk profile, with an INFORM Risk score of 2.1 out of 10 as of September 2025. This stability is a key advantage for mission-critical infrastructure that requires maximum uptime.
The main environmental risks for this inland location are:
- River Flood: The highest local risk factor, though modern infrastructure and flood defenses mitigate the threat to commercial-grade facilities.
- Drought: A secondary, less frequent concern that can impact water resources for cooling but is managed at a national level.
Risks from earthquakes and tropical cyclones are negligible. While national data indicates some coastal flood risk for the UK, it does not directly impact facilities in Derby.
