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ArchitectureSustainable CloudIndustry PerspectivesEducation & ResearchFinanceHealthcare & Life SciencesLegal & HRMedia, Gaming & CreativePublic SectorRetail & ConsumerMarket IntelligenceCloud StartupsEarnings & Market ShareEvent CoverageMergers & AcquisitionsVendor Roadmaps & LeadershipSecurity, Privacy & TrustCloud CybersecurityCyber Security & Cloud ExpoEncryption & Data PrivacyGovernance, Risk & ComplianceIdentity & AccessStrategy & Decision-MakingChoosing a Cloud StrategyFinOps & BudgetsLock-In & ExitMulti- & Hybrid CloudProcurement & ContractsSkills & HiringTechnology StackBig VendorsContainers & KubernetesDatabases & Data PlatformsInfrastructure as CodeObservability & MonitoringXaaS ModelsEventsResourcesOn-demand WebinarsExclusive VideosPodcastsAll ResourcesMoreAdvertiseAbout UsContact Us Hamburger Toggle Menu AI & Cloud, Internal Change Management, Vendor Roadmaps & LeadershipA pivotal 2026 for cloud strategyDavid Thomas15th January 2026 Share this story: Tags:researchsovereign concernsstrategyukCategories::AI & CloudInternal Change ManagementVendor Roadmaps & LeadershipShifting geopolitical, technological, and legislative pressures mean 2026 is forecast to be a key year for cloud strategy in the UK as repatriation gains mainstream traction.The trend is already accelerating, with a greater focus on data sovereignty due to growing concerns.According to insight from Pulsant, a UK-based digital edge infrastructure provider, 2025 saw businesses reevaluate cloud adoption due to increased regulatory pressures and higher costs, with many organisations shifting their workloads to private cloud, colocation, or on-premise deployments, from public cloud.The main objective has been for businesses to improve cost efficiency, overall compliance, and gain greater control.Cloud key, but hybrid models are the futureWhile the cloud remains a important component of modern IT infrastructures, a hybrid approach is emerging as the long-term direction for enterprise IT strategies.Many UK businesses are moving their workloads from global hyperscalers to domestic providers, resulting in hybrid infrastructure models, particularly as data sovereignty continues as a crucial concern.
According to recent research, 87% of UK businesses are planning to repatriate a percentage, if not all, of their workloads over the coming two years.Forecasters predict businesses will prioritise data locality, sovereignty, transparency, and visibility in 2026 through a hybrid infrastructure.However, there may be challenges lying in wait as static infrastructure starts to make way for this modern mixed environment.Threats to hybrid infrastructuresThroughout 2025, there have been a run of cyber-security breaches throughout UK organisations, like the high-profile M&S system compromise.Therefore, businesses are now more aware of how and where data is stored, particularly in their supply chains.That being said, many businesses still lack full visibility into where their data is stored, processed, and how it is backed up, thus leading to a renewed focus on resilience.
The key is to generate methods that can recover from security breaches quickly, not solely concentrating on prevention.Data centre policies and services are expected to be heavily influenced by such changes over the next year, making disaster recovery and backup standard features highly important.We are already seeing UK data centre providers responding with clearer, more compliant platforms, offering customers improved visibility and a more secure infrastructure.Policies challenge and support data centre sectorThroughout 2025, new government policies and bills have been introduced, both helping and hindering the data centre sector.For instance, the effects of the Cyber Security & Resilience Bill, established to “improve UK cyber defences and protect our essential public services”, will be seen as its laws begin to influence how businesses operate, shaping security standards in the industry.
Yes, stronger cybersecurity measures and clearer regulations will be present, but this may also increase reporting procedures, potentially leading to added workloads for organisations.Fast-track planning laws for data protection construction, particularly those classed as Nationally Significant Infrastructure Projects (NSIPs), have made the approval process quicker and easier.However, with this support comes challenges as section 106 planning obligations can still require developers to provide additional funding for local communities and services, adding extra cost.These policies, being simultaneously beneficial and complex, could provide opportunities and uncertainty for UK businesses.2026 will present the real-world impacts of these revisions, which may benefit well-prepared, security-focused organisations, but also delay some projects.AI hype settles or soars in 2026Interest in AI technologies soared to new heights in 2025, with AI-powered data centre demand surging, particularly in hyperscale settings.
2026 should see the AI hype start to settle as businesses reevaluate real-world AI use, discovering digital infrastructures that align with AI goals.Concepts like sovereign AI and inference AI will be involved during these processes, resulting in a more complex landscape.However, edge computing is expected to emerge as a key technology to support these needs over the next year.Edge computing to offer more stable, regional infrastructureAccording to Rob Coupland, Chief Executive Officer, at Pulsant, more Edge data centres will be constructed near major UK cities in 2026.“In 2026, we’ll see increased availability of Edge data centres near UK metros, opening up new opportunities for sectors like smart manufacturing and transport.
The regional edge facilities will offer more sustainable, cost-effective infrastructure, contributing to a more balanced national digital economy.”It comes as little surprise that London and the South East are predicted to maintain a dominant standing in the UK data centre market, but regional locations saw increased interest in 2025.This was pushed by certain government initiatives, like the AI Growth Zones project, set up to encourage greater investment across the country.The data centre sector enjoyed increased focus during 2025 and this trend of change is anticipated to continue in 2026 and beyond.Data centres are playing increasingly pivotal roles in supporting society and industries in the UK, but it’s the data centre providers who prioritise regional diversification and transparency that will have a competitive advantage over the next twelve months. Want to learn more about Cloud Computing from industry leaders? Check out Cyber Security & Cloud Expo taking place in Amsterdam, California, and London.
The comprehensive event is part of TechEx and co-located with other leading technology events.Click here for more information.CloudTech News is powered by TechForge Media.Explore other upcoming enterprise technology events and webinars here.About the Author David ThomasTechnology Journalist David is an experienced content writer with over five years in the technology field, including a previous role as content team leader.
He has a keen interest in artificial intelligence, robotics, and nanotechnology.David researches and stays current with the latest tech developments through forums, podcasts, blogs, and more.Beyond his specialisations, he has explored niches including lifestyle, sports, entertainment, and his first love, music.Related Amazon’s sovereign cloud puts Europe’s data control debate into practice15th January 2026 A closer look at the Bank of England’s expanding cloud project15th January 2026 Aumovio turns to cloud computing to scale autonomous vehicle testing9th January 2026 Data centre construction: implications for enterprise strategy in 20268th January 2026 Amazon’s sovereign cloud puts Europe’s data control debate into practice15th January 2026 A closer look at the Bank of England’s expanding cloud project15th January 2026 Aumovio turns to cloud computing to scale autonomous vehicle testing9th January 2026 Data centre construction: implications for enterprise strategy in 20268th January 2026 Join our CommunitySubscribe now to get all our premium content and latest tech news delivered straight to your inbox Click here Popular Cloud ROI & Cost, Interviews, Sponsored Content, Sustainable CloudRipple effect: Xylem’s sustainable water solutions for Europe’s data centres 20302 view(s)Cloud Computing, XaaS ModelsConcern over cloud storage security remains says Spiceworks – but good news for OneDrive 12547 view(s)Big Vendors, Cloud Computing, Market IntelligenceOracle Cloud denies breach as hacker offers 6 million records for sale 5466 view(s)Big Vendors, Cloud Computing, Market Intelligence5 of the best: cloud technology training platforms 5262 view(s)Cloud ROI & Cost, Interviews, Sponsored Content, Sustainable CloudRipple effect: Xylem’s sustainable water solutions for Europe’s data centres 20302 view(s)Cloud Computing, XaaS ModelsConcern over cloud storage security remains says Spiceworks – but good news for OneDrive 12547 view(s)Big Vendors, Cloud Computing, Market IntelligenceOracle Cloud denies breach as hacker offers 6 million records for sale 5466 view(s)Big Vendors, Cloud Computing, Market Intelligence5 of the best: cloud technology training platforms 5262 view(s) See all Latest View All Latest Manufacturing & Supply Chain9th January 2026Aumovio turns to cloud computing to scale autonomous vehicle testing Big Vendors8th January 2026Data centre construction: implications for enterprise strategy in 2026 Sponsored Content6th January 2026How businesses can find a quality Managed Service Provider Manufacturing & Supply Chain9th January 2026Aumovio turns to cloud computing to scale autonomous vehicle testing Big Vendors8th January 2026Data centre construction: implications for enterprise strategy in 2026 Sponsored Content6th January 2026How businesses can find a quality Managed Service Provider SubscribeAll our premium content and latest tech news delivered straight to your inbox Subscribe ExploreAbout UsContact UsNewsletterPrivacy PolicyCookie PolicyAbout UsContact UsNewsletterPrivacy PolicyCookie PolicyReach Our AudienceAdvertisePost a Press ReleaseContact UsAdvertisePost a Press ReleaseContact UsCategoriesCloud in ActionEditorial DeskFeaturesFuture of CloudIndustry PerspectivesMarket IntelligenceSecurity, Privacy & TrustTechnology StackStrategy & Decision-MakingAll CategoriesCloud in ActionEditorial DeskFeaturesFuture of CloudIndustry PerspectivesMarket IntelligenceSecurity, Privacy & TrustTechnology StackStrategy & Decision-MakingAll CategoriesOther PublicationsExplore AllAI NewsDeveloperIoT NewsMarketing TechTechHQTech Wire AsiaTelecomsExplore AllAI NewsDeveloperIoT NewsMarketing TechTechHQTech Wire AsiaTelecomsCloudTech News is part of TechForge SubscribeAll our premium content and latest tech news delivered straight to your inbox
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