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The Brexit Effect on Data Centers

30 June 2016
Cloudscene Blog - Brexit Effect on DCs

The result is in, now how will this impact data centers in the UK and EU?

While the long-term impact of Britain’s vote to exit the European Union remains to be seen, some of the biggest data center providers in Europe saw that immediate impact of uncertainty in their stock performance right after the referendum’s outcome was announced last Thursday.

As far as Brexit’s possible long-term impacts, among the chief concerns are potential expenses associated with compliance with whatever new regulations the UK establishes if and when its process of severing from the EU is completed, data center customers adjusting their infrastructure location strategies, the status of data center industry workers in the UK who are EU citizens but who do not have British passports, and whether or not British tech and financial-services industries (both of which have historically been a big source of revenue for data center providers and equipment vendors) will continue to see the same level of investment they have seen in the past.

Despite the uncertainty and potential disruptiveness of Brexit, there may be some upsides for the data center industry given the UK’s independence from Europe.

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