Data Centers in Dundee
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Dundee – Strategic Hub for Scottish Deployments
Executive Summary
Dundee is a strategic data center market for organizations requiring a presence in Scotland and the northern UK. It provides a cost-effective alternative to larger hubs, offering reliable infrastructure ideal for serving regional users, media rendering, and disaster recovery. This location ensures low-latency performance for Scottish customers and meets data residency requirements without the premium costs of London or Manchester.
Dundee: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Solid regional connectivity, though less dense than primary UK hubs. |
| Direct Cloud On-Ramps | 0 — as of September 2025 | Access is via network extension to hubs like Edinburgh or Glasgow. |
| Power Cost | ≈£0.17/kWh — as of September 2025 | Competitively priced for UK markets, supporting operational efficiency. |
| Disaster Risk | Very Low (2.1/10) — as of September 2025 | Minimal exposure to significant natural hazards, promoting high uptime. |
| Tax Incentives | No | No specific data center tax incentives are currently offered by the UK. |
| Sales Tax | 20% VAT — as of September 2025 | Standard UK value-added tax rate applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As of September 2025, connectivity is available from key national and regional carriers. The market includes at least one carrier-neutral facility, providing choice for interconnection, though overall network density is lower than in Edinburgh or Glasgow.
Direct Cloud On-Ramps: There are no direct cloud on-ramps located within Dundee as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud, and Microsoft Azure by extending their networks to nearby primary hubs such as Edinburgh and Manchester through private network interconnects.
Internet Exchange Points (IXPs): Public peering is not a major feature of this market. Most interconnection is handled privately or routed through the IXScotland exchange, located in Edinburgh, to achieve efficient traffic exchange across the country.
Bare Metal: Bare metal services are available from providers with a national UK footprint. Companies such as OVHcloud can provision dedicated servers that connect into the Dundee market, offering a solution for workloads requiring dedicated physical hardware.
Power Analysis
Average Cost Of Power: Industrial power costs in the Dundee region are approximately £0.17/kWh, as of September 2025. This competitive rate helps manage operational expenditures for compute-intensive infrastructure.
Power Grid Reliability: The national grid supporting Dundee is well-engineered and reliable, consistent with UK standards. Local data centers are supported by resilient power infrastructure to ensure service continuity.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Dundee’s data center infrastructure serves the city's growing digital media, life sciences, and video game development industries. Proximity enables low-latency access for these demanding local sectors.
Regional Market Reach: The market provides an effective location for serving Scotland, including Aberdeen, Glasgow, and Edinburgh, as well as the north of England. Deployments in Dundee improve application performance for end-users throughout the region.
Tax Advantage For Data Centers: The United Kingdom offers a stable and well-understood corporate tax environment. While no tax incentives exist specifically for data centers, the country's general business tax structure is competitive within Europe.
Natural Disaster Risk
Dundee has a very low overall risk profile, with an INFORM Risk score of 2.1 out of 10, as of September 2025. This ensures a stable operating environment with minimal threat from natural events.
While the aggregate risk is low, site-specific due diligence should account for the area's primary exposures, which include:
- Coastal Flooding
- River Flooding
- Tsunami
- Drought
