Data Centers in Dundee
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Dundee – Resilient Edge & Academic Hub
Dundee is an emerging edge data center market well-suited for organizations supporting Scotland's academic, research, and digital media sectors. Its very low natural disaster risk profile provides a stable and secure environment for critical workloads. This makes Dundee a strong choice for disaster recovery and secondary infrastructure, ensuring high uptime and business continuity.
Dundee: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable national connectivity, with primary interconnection points located in larger Scottish hubs. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Connect via Edinburgh or Glasgow for direct cloud access using private network extensions. |
| Power Cost | ≈£0.17/kWh – as of September 2025 | Favorable industrial rates with a high percentage of renewable energy in the grid mix. |
| Disaster Risk | Very Low (2.1/10) – as of September 2025 | Exceptionally low exposure to significant natural hazards common in other regions. |
| Tax Incentives | No | The United Kingdom does not offer specific tax incentives 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: Dundee is served by a solid mix of national and regional carriers, with at least one carrier-neutral facility providing interconnection options. While not as dense as Glasgow or Edinburgh, the market provides sufficient diversity for most enterprise and edge computing requirements as of September 2025.
Direct Cloud On-Ramps: There are no direct cloud on-ramps within Dundee as of September 2025. Businesses require private network extensions (PNI or wave) to connect to cloud provider fabrics in the nearest primary hubs, Edinburgh and Glasgow, to access AWS, Google Cloud (GCP), and Microsoft Azure.
Internet Exchange Points (IXPs): Public peering is handled through IX-Scotland in Glasgow and Edinburgh. Local traffic exchange in Dundee relies on private peering arrangements established within local data centers.
Bare Metal: Bare metal server options are available in the Scottish market, providing a foundation for private cloud and high-performance computing. Providers such as OVHcloud and IONOS offer dedicated servers from nearby UK locations.
Power Analysis
Average Cost Of Power: Industrial power costs in the Dundee area are approximately £0.17/kWh as of September 2025. The United Kingdom's grid features a significant and growing share of renewables (40–50%), which helps stabilize long-term energy expenses for high-density deployments.
Power Grid Reliability: The power infrastructure supporting Dundee is well-engineered and stable, consistent with UK standards. The national grid provides reliable energy, with local distribution networks designed to support commercial and industrial needs.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Dundee are positioned to serve the city's thriving academic institutions, including the University of Dundee, and its significant digital media and life sciences clusters. This proximity enables low-latency connectivity for research, development, and content delivery.
Regional Market Reach: Dundee provides effective digital infrastructure access for Tayside, Fife, and Northeast Scotland. It serves as a valuable edge location for content delivery networks and cloud services reaching populations outside the central belt.
Tax Advantage For Data Centers: The United Kingdom's tax structure is straightforward but does not include specific incentives for data centers. The primary financial advantage comes from operating in a stable economy with predictable fiscal policies and access to a skilled technology workforce.
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 indicates an exceptionally stable physical environment for critical infrastructure.
Key risk factors are minimal and well below European averages:
- Coastal Flood: 8.3/10
- River Flood: 5.7/10
- Tsunami: 1.9/10
- Drought: 1.6/10
Risks from earthquakes and tropical cyclones are negligible. The overall hazard and exposure score is very low, making the region a prime location for disaster recovery and primary production sites that demand maximum uptime.
