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How EU and UK Regulatory Complexity Is Reshaping Cloud Strategy

15th July 2026

Land and power alone no longer determined where new data centres can be built.

Gone are the days when factors like available land and power alone determined where new data centres could be built. Across the European Union and United Kingdom, regulatory architecture for data is rapidly becoming one of the most consequential forces shaping where digital infrastructure investments are made.

Gartner forecasts that sovereign cloud infrastructure spending in Europe will nearly double in 2026, from $6.9 billion to $12.6 billion (USD) – ranking it among the fastest-growing regions globally. Europe is expected to surpass North America in sovereign cloud investment by 2027. For data centre operators across the region, this regulatory architecture is becoming a direct specification for locally controlled physical infrastructure.