Despite data centres being declared Critical National Infrastructure, only 4% of councils across the UK are developing a dedicated data centre strategy for their regions, according to the latest research from FarrPoint.

In its third annual Digital Connectivity Survey, the UK connectivity consultancy found that although half of local authorities were interested in investigating the potential impact of data centres, only a quarter (24%) believe that there are significant economic benefits to attracting more data centres to their regions

The data shows that the surge of interest in data centres across both government and industry, spiked by the rapid advance of AI, might not be felt at a local level, with FarrPoint’s report showing that just 15% of councils are actively engaging with data centre developers to attract investment.

The latest survey also showed that most councils remain focused on fixed and 4G connectivity, however 5G is gaining traction.

Although most local authorities continue to prioritise the rollout of broadband and 4G mobile infrastructure, there is a growing interest in 5G, particularly within the health and social care sectors, as well as its role in tackling urban connectivity challenges. 

FarrPoint said that increasing 5G coverage was a priority for roughly one-sixth of respondents, primarily for economic development and innovation, through initiatives like the ‘5G Innovations Region’ programme, however more investment is still needed.

“Local involvement will be needed as the continued expansion of 5G takes place and the increased developments around data centres raise pros and cons for local areas, all of which need to be considered,” said Dr Andrew Muir, CEO at FarrPoint.

For most councils, the leading priorities going into 2025 are to continue rolling out gigabit broadband coverage, and ensuring that minimum superfast connectivity is available for all premises in their region. 

According to FarrPoint, this is driven by local authorities recognising that affordable, fast, and reliable fixed connections are vital for addressing digital exclusion. 

Helping to solve this problem, over three-quarters of council areas (76%) now have a digital champion, a position responsible for supporting digital inclusion in the region, with another fifth (19%) reporting they will explore appointing someone to the role.

Standing in the way are funding and resourcing issues, with councils reporting that a lack of funding and skills gaps continue to hinder progress within their regions. 

Government funding remains crucial to undertake major connectivity projects at the local level, but many flagged challenges in securing funding and finding skilled personnel. 

Over half of all councils (55%) said that government funding was essential for their current level of innovation in digital connectivity, and over a third (34%) considered it helpful, with just 3% reporting they do not pursue any central funding for digital innovation projects.

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“Unlike well-established disciplines like Highways, Digital often struggles to find the right home within an organisation with an already overwhelming agenda,” said Mark Hawthorne, councillor and LGA Digital Lead at Gloucestershire County Council.

“That’s why getting central government backing and financial support is vital. While my own council has been able to make the case for digital champions, not all councils are financially well placed to make that commitment.

“If government is to fulfil its ambition for growth, connectivity, and AI, it needs local councils on board and driving digital growth over multiple workstreams.”