Research for leading data centre operator reveals potential compliance headaches for data decision making and spending in the North
(MANCHESTER) 29 DECEMBER 2026 – Implementing Internet of Things (IoT) projects has overtaken compliance concerns when it comes to defining data strategy for companies in the North, according to research from local data centre network Pulsant.
The research, carried out by Vanson Bourne, shows that whilst 71% of businesses in the region cite artificial intelligence in the top three impacts on their data decision making, IoT projects came in a close second with 67%. The compliance concerns of data sovereignty and residency – where data is and under which global data laws – was top three for just 52% of Northern firms.
The research also shows that businesses in the North have higher confidence in their data strategy than those in other parts of the UK. More than half in the North – 52% – were ‘completely confident’ their current strategy will remain fit for purpose for the next two years, compared with 42% across the UK.
When it comes to confidence specifically related to compliance, 59% of Northern firms reported certainty in their implementation of data sovereignty and residency regulation changes, compared to a national average of 48%.
Steve Fearon, Chief Commercial Officer at Pulsant, said: “Nationally, the research has shown that AI, followed by compliance, have driven confidence in data strategies. The Internet of Things has been a notable third place, so this regional leap in importance is interesting.
“These figures suggest that Northern businesses are looking to digital infrastructure to support commercially viable AI and IoT projects, rather than assessing the impact of compliance demands. That could expose them to a risk of being caught out by the likes of the Cybersecurity and Resilience Bill or Data Access and Use Act.”
When it comes to spending plans, nearly four-fifths of organisations (79%) across the UK said that sovereignty and residency considerations influenced their digital infrastructure investment. This dipped slightly to 75% in the North.
“Our research suggests that Northern businesses are focusing on AI and IoT projects – and both these technologies demand strong control over data and infrastructure, so they may want to give this more thought as we head into 2026,” concluded Fearon.
“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 costs.”
Pulsant operates four data centres in North England – two in Newcastle, one in Manchester and one in Rotherham – as part of a national network of 14 interconnected sites across the UK.
A full copy of the report or data is available on request.