A new techUK report published today warns that the UK's future economic growth, productivity and national resilience depend on urgent action to strengthen the country's digital infrastructure foundations.

The report argues that connectivity, compute and data infrastructure are now as fundamental to economic success as transport, energy and housing. From artificial intelligence (AI) and smart manufacturing to digital public services and next-generation research, every aspect of the UK's digital future relies on robust underlying infrastructure.

While the UK remains a global leader in several areas of digital infrastructure, techUK warns that mounting challenges threaten to undermine its competitive advantage. Digital technologies already contribute an estimated £286 billion in annual Gross Value Added (GVA) to the UK economy - around 13% of national output - and have been a major driver of productivity growth since the pandemic. The UK is home to Europe's largest data centre market, world-leading research in quantum, photonic and neuromorphic computing, and growing momentum in full-fibre broadband and 5G Standalone deployment.

However, significant barriers to investment and expansion remain. Industrial electricity prices are among the highest in the developed world, grid connection delays can extend for years, planning processes remain poorly adapted to digital infrastructure, and the UK continues to lag international competitors on network performance.

techUK reports that the UK's challenge is not a lack of technological capability, but the absence of a coordinated national strategy capable of matching the scale and pace of global competition. In its report, techUK sets out five objectives to meet by 2035 to build a world-class digital economy:

  • A fully connected and resilient nation with universal full-fibre and 5G Standalone coverage, commercial 6G deployment underway, and strengthened cyber resilience.
  • A globally competitive position in next-generation compute technologies, including quantum, neuromorphic and photonic computing.
  • Electricity prices below the IEA median to attract investment in the UK rather than deter it.
  • Governance structures capable of keeping pace with technological change, supported by streamlined planning and regulatory frameworks.
  • Widespread digital adoption across every sector and region of the UK, enabling productivity growth and economic opportunity nationwide.

Sophie Greaves, associate director for digital infrastructure at techUK said: “Digital infrastructure is no longer simply an enabler of economic activity, it is the foundation on which future economic growth, innovation and national resilience will be built. The countries that invest now in connectivity, compute and data infrastructure will be best placed to capture the economic opportunities of the next decade.

“By following the roadmap we have set out for a resilient digital infrastructure by 2035, the UK can secure its position as a leader in compute, bringing significant benefits to the economy.”