Data Centers in Dundee
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Dundee – Resilient Edge for Scottish Digital Innovation
Dundee offers a compelling, low-risk environment for deploying digital infrastructure in Scotland. This market is ideal for organizations requiring a robust, cost-effective footprint to serve eastern Scotland, particularly for disaster recovery or as a secondary site to Edinburgh or Glasgow. Its stable profile ensures high uptime and operational predictability for critical workloads.
Dundee: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid national and regional connectivity, though not a primary international hub. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct access is via nearby hubs like Edinburgh or through network extensions. |
| Power Cost | ≈£0.17/kWh – as of September 2025 | Industrial pricing offers competitive operational costs for compute-heavy deployments. |
| Disaster Risk | Low (2.1/10) – as of September 2025 | One of the lowest risk profiles in the UK for natural hazards. |
| Tax Incentives | No | The United Kingdom does not offer specific data center tax incentives. |
| 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: As a secondary market, Dundee has access to a focused group of national and regional carriers, as of September 2025. Carrier-neutral facilities provide connections to key UK networks, ensuring resilient service delivery across Scotland.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Dundee, as of September 2025. High-speed, low-latency access to major cloud providers is achieved via dedicated network connections to primary hubs like Edinburgh and Glasgow.
Internet Exchange Points (IXPs): Public peering is primarily handled through IX-Scotland in Edinburgh. Most peering in Dundee is accomplished privately or routed through the larger Scottish and UK internet exchanges.
Bare Metal: Bare metal server availability is good, with providers like Hivelocity and IONOS offering dedicated compute solutions that can be deployed locally or in nearby UK data centers.
Power Analysis
Average Cost Of Power: The average industrial electricity cost in the region is approximately £0.17/kWh, as of September 2025. This competitive rate, combined with a growing share of renewables in the UK's power mix, makes Dundee an economically sound choice for managing energy expenses. The grid composition includes roughly 40–50% renewables, 35–45% fossil fuels, and 10–15% nuclear power.
Power Grid Reliability: The power grid serving Dundee is well-engineered and stable, consistent with UK standards. Data centers in the area benefit from reliable power delivery, with options for redundant feeds to support mission-critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Dundee are well-positioned to serve the city's growing technology, gaming, and life sciences sectors. The location provides low-latency connectivity to local universities and innovation hubs.
Regional Market Reach: Dundee provides effective coverage for eastern and northern Scotland, including cities like Aberdeen and Perth. It is an excellent location for a secondary or disaster recovery site to complement a primary deployment in the Central Belt.
Tax Advantage For Data Centers: While the UK lacks specific data center incentives, businesses can benefit from broader capital allowance programs for plant and machinery. This allows companies to deduct equipment investments from their taxable profits, reducing the overall tax burden.
Natural Disaster Risk
Dundee 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 ensuring uptime and operational continuity.
The primary natural hazards to consider are:
- Coastal Flood: The most significant risk factor for the coastal region.
- River Flood: A notable consideration due to the presence of the River Tay.
- Tsunami: A low-probability but present risk for a coastal city.
- Drought: A minor risk factor for the region.
