Data Centers in Derby
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Derby – A Low-Risk Hub for UK Digital Infrastructure
Derby offers a compelling alternative to London for deploying digital infrastructure, especially for workloads requiring high operational stability and low environmental risk. The market is ideal for businesses focused on UK-wide service delivery, disaster recovery, and leveraging a cost-effective, reliable power grid. Its central location ensures excellent reach across Great Britain.
Derby: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong national connectivity, though lacking direct international gateways found in London. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct cloud access is typically established via London or Manchester through private network extensions. |
| Power Cost | ≈£0.17/kWh – as of September 2025 | The UK grid features a strong mix of renewables, gas, and nuclear power. |
| Disaster Risk | Very Low (2.1/10) – as of September 2025 | Exceptionally low exposure to significant natural hazards, enhancing operational resilience. |
| Tax Incentives | No | No specific data center tax incentives are currently offered. |
| Sales Tax | 20% VAT – as of September 2025 | The standard UK Value Added Tax applies to services. |
Network & Connectivity Ecosystem
Derby provides a solid foundation for network connectivity within the UK, though it relies on larger hubs for direct international and cloud access.
Carrier Density & Carrier Neutrality: The Derby market contains at least 2 data centers, as of September 2025. While not as dense as London, businesses can access a sufficient range of national carriers for resilient connectivity. Carrier-neutral facilities are the standard, allowing for flexible network architecture.
Direct Cloud On-Ramps: There are 0 direct cloud on-ramps located in Derby, as of September 2025. Secure, low-latency connections to all major cloud providers are achieved through private network links to nearby primary hubs like London and Manchester.
Internet Exchange Points (IXPs): Public peering is not a feature of the local Derby market. Most peering is conducted privately or through major national exchanges in London, such as LINX and LONAP, ensuring efficient traffic exchange across the UK.
Bare Metal: Bare metal server availability is good, with providers offering services directly or through partners in nearby markets. Options from companies like Hivelocity and phoenixNAP can be deployed to serve regional needs.
Power Analysis
The UK's power infrastructure is both reliable and increasingly sustainable, providing a stable operating environment for data centers.
Average Cost Of Power: Industrial power costs in the region are approximately £0.17/kWh, as of September 2025. This price point, combined with grid stability, allows for predictable operational expenditure. The national energy mix includes about 40–50% renewables, 35–45% fossil fuels (primarily gas), and 10–15% nuclear.
Power Grid Reliability: The national grid is well-engineered and highly reliable, with significant investment in redundant transmission paths. Data centers in established corridors benefit from multi-substation support, which protects against localized outages and ensures high levels of uptime.
Market Access, Business & Tax Climate
Derby's central location and industrial base make it a strategic point for serving the UK market.
Proximity To Key Business Districts: Data centers in Derby are well-positioned to serve the advanced manufacturing, aerospace, and rail industries concentrated in the East Midlands. This proximity supports low-latency applications for local engineering and logistics operations.
Regional Market Reach: From Derby, it is possible to deliver services to the majority of the UK population with low latency. It is an effective hub for national content delivery, application hosting, and disaster recovery solutions for businesses located in higher-cost or higher-risk areas like London.
Tax Advantage For Data Centers: The UK does not offer specific tax incentives for data center construction or operation. The primary financial advantage comes from operating in a location with lower real estate and ancillary costs compared to primary European hubs.
Natural Disaster Risk
Derby has an exceptionally low-risk profile for natural disasters, making it one of the safest locations for critical infrastructure in the UK.
The overall INFORM Risk score is 2.1 out of 10, classifying the market as "Very Low" risk, as of September 2025. This score reflects minimal exposure to significant environmental threats. Key individual risk factors are also low, ensuring a stable and predictable operating environment.
Primary risks to consider, while minimal, include:
- Coastal Flood: 8.3/10 (national figure, risk in inland Derby is negligible)
- River Flood: 5.7/10
- Drought: 1.6/10
- Earthquake: 0.1/10
