Data Centres Officially Designated as Critical National Infrastructure: What This Means for Businesses

On 12 September 2024, the UK government marked a significant milestone by designating data centres as Critical National Infrastructure (CNI). This decision highlights the growing importance of data centres in today’s digital economy, where they serve as the backbone of modern life and support everything from cloud services to AI-driven operations. In this article, we’ll explore what this designation means for businesses, why data centres are so crucial, and the potential implications for non-compliance with these new standards.

What is a Data Centre?

A data centre is a facility that houses networks of computers and storage systems used to store, manage, and process large amounts of data. They are the backbone of today’s digital economy, enabling cloud computing, internet services, and the seamless flow of data across the globe. Data centres provide the physical infrastructure for companies to host their IT operations, supporting everything from business-critical applications to consumer services like social media, streaming, and online banking.

In the UK, some of the largest and most renowned data centres include VIRTUS London5, Telehouse North, and the Next Generation Data Centre in Newport, Wales, which is the largest in Europe. These vast facilities are vital in ensuring the smooth operation of countless industries and sectors, reinforcing the importance of their recent designation as Critical National Infrastructure.

Why Are Data Centres Critical?

Data centres act as the central nervous system of modern society. They store and protect the personal data of millions of individuals, enabling everything from drug discovery and business operations to essential services like NHS patient records, climate monitoring, and even social media platforms. As the use of AI continues to grow exponentially, data centres are becoming more important than ever, making their security and resilience crucial for both businesses and consumers.

The CNI designation acknowledges the key role data centres play in safeguarding the UK’s digital infrastructure. By being recognised as CNI, data centres will now receive greater government support to ensure they are well-protected from threats like cyberattacks, power outages, and extreme weather events. The designation puts data centres on par with the UK’s water, energy, and emergency services in terms of importance.

What Does This Mean for Businesses?

For businesses that rely on data centres for their daily operations, this designation signals a strengthened focus on security and resilience. Data centres that now hold CNI status will be required to meet higher standards of protection against cyberattacks, physical threats, and other risks. This will give businesses using these facilities increased confidence in the security and reliability of their data storage and processing.

Moreover, the new CNI status is expected to spur further investment in the data centre industry, which may result in enhanced infrastructure and services for businesses across the UK. London has long been a hub for data centres, but with this designation, cities such as Manchester, Birmingham, and even regions like Scotland and Wales are likely to see increased development, offering businesses more options for secure and reliable data infrastructure.

What Are the Implications of Non-Compliance?

Although the CNI designation does not immediately bring legislative changes, it sets the stage for stricter compliance and regulatory oversight in the future. Businesses that fail to adhere to the required standards of data protection and security may face increased scrutiny or potential penalties. For companies that rely on data centres for handling sensitive information, it’s critical to ensure they are partnering with facilities that meet the stringent security requirements of CNI status.

Ignoring these developments could leave businesses vulnerable to cyber threats, operational downtime, and legal consequences, particularly if they are storing high-risk personal data or sensitive corporate information.

The Role of the NIS Directive

The Role of the NIS Directive

The NIS Directive (Network and Information Systems Directive) is central to the regulation of Critical National Infrastructure (CNI). Transposed into UK law as the NIS Regulations 2018, the directive aims to improve the cybersecurity of organisations that contribute to the country’s CNI. These regulations apply to sectors such as water, health, transportation, digital services, and energy.

Now that data centres are officially designated as CNI, they are likely to be brought under the scope of the NIS Directive. This means businesses will need to meet stricter cybersecurity standards and prepare for regular assessments. Failure to comply with the NIS Regulations could result in substantial penalties and increased vulnerability to cyber threats.

What is NIST?

The NIST Cyber Security Framework is a globally recognised set of best practices and guidelines for managing and reducing cybersecurity risks. Developed by the National Institute of Standards and Technology (NIST) in 2013, the framework is widely adopted across various industries, including Critical National Infrastructure.

The NIST Framework is built around five core functions: Identify, Protect, Detect, Respond, and Recover. These functions provide a structured approach to managing cybersecurity risks, enabling organisations to tailor their measures based on their specific risk landscape. The framework is closely aligned with the NIS Directive, making it highly relevant for businesses operating in the CNI space, including data centres.

Implementing the NIST Framework can help organisations improve their cybersecurity posture, making them more resilient to emerging threats while ensuring compliance with regulatory requirements.

How Does This Impact the Broader UK Digital Economy?

The UK is home to the largest number of data centres in Western Europe, making it a critical player in the global digital economy. The CNI designation will likely attract further tech investment, positioning the UK as a leader in data security and infrastructure. As a result, businesses can expect enhanced infrastructure, stronger regulatory support, and increased innovation in the data centre space.

This focus on secure and resilient data infrastructure will not only benefit the tech giants but also smaller enterprises and start-ups, providing a more stable and secure digital landscape for companies of all sizes.

How Can Data Protection People Help?

At Data Protection People, we understand the complexities of these developments and are available to provide expert advice. Our brilliant team of cybersecurity practitioners, including Qualified Security Assessors (QSAs), has worked closely with businesses across the UK, helping them navigate the challenges of cybersecurity and regulatory compliance.

If your organisation needs guidance on how to adapt to the latest changes in legislation or ensure compliance with new CNI requirements, our consultants are here to help. Why not set up a free meeting with one of our experts today? Learn how we can help you progress your organisation forward in line with these recent changes and ensure that your data security strategies are future-proofed.