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Microsoft May Halt the Expansion of a UK Datacenter Due To Brexit (onmsft.com)
On Monday, Microsoft hosted an online event to discuss the impact of the UK's departure from the European Union on the tech industry. The company currently has two large datacentres in the UK, and it is expanding those in response to vigorous demand for cloud services. But Brexit could throw a spanner in the works. From a report: Microsoft's UK Government Affairs Manager Owen Larter said, "We're really keen to avoid import tariffs on any hardware. Going back to the datacenter example, we're looking to build out our datacenters at a pretty strong lick in the UK, because the market is doing very well. If all of a sudden there are huge import [tariffs] on server racks from China or from eastern Europe, where a lot of them are actually assembled, that might change our investment decisions and perhaps we build out our datacenters across other European countries." Simply put, if they cannot build in Britain, then they will build surrounding it. Currently, the data is shared freely between the EU countries without any issues. This is because they all have similar security between them. However, if the UK leaves the EU, then this could cause even more issues for Microsoft.
Not really, it may have been meant to service Western Europe and once you aren't part of the EU some businesses may not be able to store data there. Typical head in the sand brexiter, it's ok to think the UK will be better off outside the EU but you shouldn't pretend there won't be negative aspects.
But the UK is under EU law, which means you can fulfill EU data protection regulations (necessary for ANYTHING holding personal data in the UK, which is literally every online service you use).
Under Brexit, the UK won't be sufficient, even if the data protection laws NEVER change. It's literally no longer an EU-DP compliant country. Thus all that investment that could have serviced the entire EU is wasted, you need to be an EU datacenter anyway, and the UK one sits and hold UK data only.
As such, it's not stupid reporting. Microsoft are doing what EVER OTHER DATA PROCESSOR in the country is doing. I work for a school. We use an EU off-site location for backups. When Brexit strikes, that will likely have to stop.
For the same reason we cannot use iCloud as they refuse to give any guarantees that UK data will only ever stay within the EU (unlike Google, Microsoft, Facebook, Twitter, Amazon, Dropbox, etc. who ALL guarantee that).
UK and EU data protection laws are much stricter than you might think. Literally, cloud-based services will now have to have an EU datacenter and a UK one, whereas before Brexit just a UK one could have done both jobs.
They may change the laws, but that would require EU co-operation to allow EU data to be sent to a non-EU country, and those kinds of things generate lawsuits (it's why the EU-US aircraft travel data sharing regulations were revoked, for instance)
I get your sentiment, but I think that is unfair. A lot of brexiters I have met when I used to travel around up North for work, were quite well meaning people who had simply been fed the lie that the EU causes all their problems for the last twenty years. Anytime their politicians stuffed up, went back on a promise or just flat out neglected them, along would come UKIP or a tabloid to start blaming the EU for the problem, and successive Labour and Tory governments quietly stepped aside to let it happen.
Many parts of England have never recovered from being decimated by Thatcher (I think many of the reforms were required, but they simply left towns to rot, rather than help with any sort of transition), and the convenient scape-goat for politicians doing nothing about this has been the EU. It has been the ultimate case of getting caught in a lie, and it amazes me that rather than anyone admitting that areas outside London have been neglected and need more focus, they are just going through with the foot shooting operation.