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U.K. Digital Transformation Trends Post-Brexit

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U.K. Digital Transformation Trends Post-Brexit

On December 31, the transition period for Brexit came to a close, marking the end of nearly half a century of Britain’s membership in the European Union (EU). While this means that Britain has left the EU single market, the EU – U.K. trade agreement, signed in late December, maintains trade of goods between the two territories with no tariffs or quotas. On the other hand, cross-border provision of services, such as financial or professional services, remains less certain as there will no longer be automatic recognition of professional qualifications or licenses.[i]

Despite these uncertainties, there are several reasons to be optimistic about digital transformation and technology investment here. U.K. businesses, especially service providers and those in financial services, content and digital media, healthcare and life sciences, continue to expand their digital infrastructure, driving demand for interconnection – the direct and private exchange of traffic between key business partners. The Global Interconnection Index (GXI) Volume 4 predicts that interconnection bandwidth in Europe will grow at a 45% compound annual growth rate (CAGR) from 2019 to 2023. At that time, London alone is expected to account for 35%, or 1,337 Terabits per second (Tbps) of Europe’s total interconnection bandwidth (3,782 Tbps). This is three times higher than Paris and more than twice that of Amsterdam, attesting to the vital role that London will continue to play as a strategic interconnection hub for digital business in the European region.

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