Breaking Property News 5/1/26
Daily bite-sized proptech and property news in partnership with Proptech-X.
A new year of repatriation, resilience, and regional rebalancing
This year is set to be a pivotal year for cloud strategy, with repatriation gaining momentum due to shifting legislative, geopolitical, and technological pressures. This trend has accelerated, with a growing focus on data sovereignty.
These challenges have set the stage for 2026 to be the year of repatriation, resilience, and regional rebalancing. Here, Rob Coupland, Chief Executive Officer at Pulsant, offers his insights.
Repatriation goes mainstream
In 2025, data repatriation became a key trend, with businesses re-evaluating cloud adoption due to rising costs, regulatory pressures, and concerns over data sovereignty. Many are moving workloads from public cloud to private cloud, on-prem, or colocation to gain better control, cost efficiency, and compliance. While cloud remains essential, a hybrid model combining public, private, and on-prem solutions is emerging as the future of enterprise IT strategy.
For UK businesses, this has prompted many to shift workloads from global hyperscalers to domestic providers, creating hybrid infrastructure blends, especially as data sovereignty becomes a top priority. Latest research indicates 87% plan to repatriate some or all of their workloads over the next two years.
In 2026, the momentum behind these changes will continue. Businesses will focus even more on visibility, data locality, sovereignty, and transparency. However, managing a hybrid or mixed infrastructure could pose challenges, as the era of static infrastructure fades away.
The continued impact of cyber security breaches
Last year witnessed several high-profile cybersecurity breaches in UK organisations, with the M&S incident being one of the most memorable. These breaches have led to increased awareness of where data is stored and how it’s managed, particularly within the supply chain.
Many businesses still don’t fully understand where their data resides, how it’s processed, or how it’s backed up. These breaches have renewed the focus on resilience, particularly in terms of the speed of recovery after an incident, rather than just prevention.
In 2026, this will influence data centre policies and services, with disaster recovery and backup becoming more standard. UK data centre providers are already stepping up with more transparent, compliant platforms to meet growing customer demands for visibility and secure infrastructure.
We’ll also see the true impact of the Cyber Security & Resilience Bill, as its guidelines start to shape industry practices and expectations.
The emerging reality of new government policies
The past 12 months has seen a mix of new policies that will both support and challenge the data centre sector. For example, fast-track planning laws for data centre construction, especially those considered Nationally Significant Infrastructure Projects (NSIPs), have streamlined the planning process. However, section 106 planning obligations can require developers to contribute financially or otherwise to local communities and services, creating additional challenges.
Furthermore, while the Cyber Security & Resilience Bill introduces stronger cyber security measures and clearer regulations, it also brings increased reporting standards and red tape that could prove burdensome.
The combination of positive and challenging policies creates both uncertainty and opportunity. This year we’ll see the real-world impact of these changes, potentially slowing some developments but favouring well-prepared, security-focused operators.
The AI hype cycle hits reality
AI-driven data centre demand surged in 2025, especially in hyperscale facilities, as interest in AI technologies reached new heights.
However, as the hype settles, businesses are starting to evaluate real-world AI uses and determine what digital infrastructure is truly needed to support their AI goals. This also brings inference AI and sovereign AI into the picture, further complicating the landscape, with Edge computing emerging as a key beneficiary.
Although hyperscale demand will no doubt continue, demand for specialised, inference-optimised storage platforms will become more significant.
Regional rebalancing & the rise of Edge
While London and the South East will likely maintain their dominance in the UK data centre market, 2025 saw growing interest in regional locations, spurred by government initiatives like the AI Growth Zones, which are encouraging investment outside of the capital.
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. These regional edge facilities will offer more sustainable, cost-effective infrastructure, contributing to a more balanced national digital economy.
The last twelve months have been a period of significant change, with rising interest in the data centre sector as it plays an increasingly critical role in supporting industry and society. As change becomes the new norm, data centre providers who prioritise transparency, regional diversification, and realistic AI enablement will be best positioned to lead the way in 2026. It will be a year for the sector to mature, rebalance, and grow stronger.
Andrew Stanton Executive Editor – moving property and proptech forward. PropTech-X
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