Data Centers in Dundee
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Dundee – Scotland's Resilient Digital Hub
Dundee is an emerging edge data center market providing a cost-effective and low-risk location for serving Scotland and the northern UK. The city is ideal for deployments requiring high resilience and proximity to local academic, research, and digital media clusters. Its strategic position offers a stable alternative to more congested primary markets.
Dundee: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable connectivity, suitable for regional and backup operations. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Access via hubs like Edinburgh or Glasgow through private network extensions. |
| Power Cost | ≈£0.17/kWh – as of September 2025 | Competitive industrial power rates support efficient data center operations. |
| Disaster Risk | Very Low (2.1/10) – as of September 2025 | Minimal exposure to significant natural disasters, enhancing operational uptime. |
| Tax Incentives | No | The UK does not offer specific national tax incentives for data centers. |
| 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 growing market, Dundee has access to a focused group of national and regional carriers. The primary data center facility operates on a carrier-neutral basis, providing choice for interconnection.
Direct Cloud On-Ramps: Dundee has 0 direct cloud on-ramps, with no native access to the 0 major cloud regions within the city. Secure, low-latency connections to providers like AWS, Microsoft Azure, and Google Cloud (GCP) are established via network extensions to primary hubs in Edinburgh and Glasgow.
Internet Exchange Points (IXPs): While Dundee does not host a major public IXP, the IXScotland exchange is accessible in nearby Edinburgh. This allows for efficient traffic exchange and peering throughout Scotland.
Bare Metal: Bare metal server options are available in the region, often through providers that service the broader UK market. Companies like IONOS can provide dedicated server solutions.
Power Analysis
Average Cost Of Power: Industrial electricity pricing in the region is approximately £0.17/kWh, as of September 2025. This competitive pricing, combined with a grid increasingly powered by renewables, makes operating in Dundee economically attractive.
Power Grid Reliability: The UK's national grid is highly reliable. Data centers in Dundee benefit from this stability, with local infrastructure engineered to support critical digital operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Dundee are positioned to serve the city's thriving digital media, life sciences, and academic research sectors. This proximity provides low-latency performance for local innovation hubs and businesses.
Regional Market Reach: Dundee serves as an effective digital hub for eastern and northern Scotland, including Aberdeen's energy sector. It provides a strategic location for disaster recovery and content delivery networks covering this geography.
Tax Advantage For Data Centers: The primary financial advantage in the UK comes from a stable and well-understood corporate tax system. While no direct incentives exist, businesses can benefit from clear regulations and access to a large national market.
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 exceptional level of safety minimizes the threat of environmental disruptions to data center operations.
The most notable, yet still low, environmental risks include:
- Coastal Flood: The highest regional risk factor, though defenses are strong.
- River Flood: A moderate consideration for specific low-lying areas.
- Tsunami: A very low probability event for the Scottish coast.
- Drought: Infrequent and low-impact events.
