Research for leading data centre operator reveals region leads the UK in confidence, investment plans and cloud repatriation
BIRMINGHAM, UK, 29th DECEMBER – The Midlands is the most data confident region in the UK, according to research from local data centre operator, Pulsant. And Midlands businesses are set to extend this lead in 2026 with ambitious investment plans, a focus on artificial intelligence and leading UK cloud repatriation.
The research, conducted by Vanson Bourne, shows that 59% of Midlands businesses are ‘completely confident’ their current data strategy will remain fit for purpose for the next two years, compared with 42% across the UK.
This makes the Midlands the most confident region in the country.
The region also leads investment plans, with 62% of Midlands respondents expecting to make significant increases to technology investment to address changes in data strategy in the next two years. This compares to a national average of 47%.
Compliance with regulations surrounding the collection, transmission, storage and processing of this data will dominate this investment. More than 90% of Midlands companies plan to increase investment in data sovereignty and residency, compared to 78% across the UK.
The Midlands already spends the most in this area: 13% of companies in the region report they have increased investment in compliance by 21-25% in the past two years – twice the national average of this level of spending.
Steve Fearon, Chief Commercial Officer at Pulsant, said: “Whilst London and Manchester often dominate the tech city listings, Birmingham – and surrounding large towns such as Milton Keynes – have embraced AI, then developed and invested in compliant infrastructure that works for regional businesses.
“While keeping data close to home is one factor businesses are thinking about, value is always important. As businesses work out how they’ll use generative AI, it will become clearer how to put the right infrastructure in the right place for the right workloads, avoiding unnecessary public cloud costs.”
The research also shows that the Midlands is set to become the regional repatriation leader.
The need to move data away from public or other cloud services was the second most powerful driver of data decision making (behind AI), ranked in the top three choices by 65% of Midlands businesses. Furthermore, 94% of companies in the region said they plan to repatriate some or all of their data in the next two years, compared to a national average of 87%.
“Our research suggests that the Midlands is firing on all cylinders when it comes to driving the digital economy,” concluded Fearon. “When you consider the concentration of high-growth SMEs in the region, pioneering technologies in fields as diverse as automotive, logistics and advanced manufacturing, you see businesses forging their own digital destiny. We’re excited to be part of this regional expansion.”
Pulsant’s Tyseley data centre, five miles south east of Birmingham city centre, is part of a national network of 14 interconnected sites across the UK, offering high-speed, low-latency connectivity to 1,600+ cloud services, network providers and business partners.
A full copy of the report or data is available on request.
