Multi-billion plan to create Europe's largest data centre in Hertfordshire announced
They say it'll create 700 jobs locally.
The Government's welcomed a proposed £3.75 billion investment in creating Europe's largest data centre in Hertfordshire by data firm DC01UK.
They say this will create more than 700 jobs locally and support thousands more across the country.
Technology Secretary, Peter Kyle, said: "The huge £3.75 billion private investment announced today in Hertfordshire is a vote of confidence in those plans and a clear example of my determination to ensure technological advancements are helping to grow our economy and create wealth across the country."
Data centres in the UK are also to be designated as critical national infrastructure in an effort to protect them from cyber attacks or IT blackouts, the Government has said.
The buildings store much of the data generated in the UK - including photos taken on smartphones, financial information and NHS records.
By now being categorised as Critical National Infrastructure, it means data centres will be on the same footing as water, energy and emergency service systems and therefore receive greater government support to anticipate and recover from major incidents such as cyber-attacks, outages or environmental disasters.
The Government said the move, which is the first new CNI designation in almost a decade, will not only help protect critical data infrastructure but also provide businesses with reassurance to help boost economic growth in an increasingly digital world.
The data centre industry already generates an estimated £4.6 billion a year in revenues, and the UK is currently home to the highest number of data centres in western Europe.
Kyle went on to say: "Data centres are the engines of modern life, they power the digital economy and keep our most personal information safe.
"Bringing data centres into the Critical National Infrastructure regime will allow better co-ordination and co-operation with the Government against cyber criminals and unexpected events."
Earlier this week, Amazon Web Services also announced plans to invest £8 billion in the UK over the next five years on building, operating and maintaining data centres - for which it is one of the world's biggest providers.
Felicity Oswald, chief executive of the National Cyber Security Centre, said: "Our critical national infrastructure is a high-priority target for cyber attackers - ranging from criminals to hostile states - who would seek to do the UK harm.
"I welcome today's move to designate data centres as CNI, acknowledging the essential role their services play in driving forward our economy and society.
"CNI organisations must have a high level of security to combat the cyber threats they face and the NCSC will continue working hand in hand with operators to bolster their online resilience."