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Microsoft mulls cutting UK datacentre investment amid Brexit concerns

79 points| RobAley | 9 years ago |arstechnica.co.uk | reply

77 comments

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[+] walshemj|9 years ago|reply
I think the articles assertion that with the reduction in eu migration there will magically be more visas for USA India and China that is not what the hard core brexiters are about.
[+] SideburnsOfDoom|9 years ago|reply
"More visas for USA, India and China" is obviously not what what the hard core brexiters are about, but it is what those countries are going to ask for when it comes to a 1 on 1 trade deal with the UK. There's nothing magical about it, it's just a question of who has leverage in negotiations.
[+] robhu|9 years ago|reply
It's quite a reasonable assumption.

The main complaint about migration in the UK is with respect to low skilled migrants. As the UK was totally unable to control EU migration (a lot of which is low skilled migrants from Eastern Europe) it had to try to 'get the numbers down' from non-EU sources.

Now that the UK will be sovereign, in control of it's borders again, it will be able to limit low skilled migration from the EU and allow more high skilled migrants from everywhere.

[+] beejiu|9 years ago|reply
I can't imagine a datacentre has much economic impact.
[+] pabloski|9 years ago|reply
Why? It is Brexit not Internexit. The servers will be reachable, even after the Brexit. So, where is the problem? Maybe they will not be able to exploit the tax loops?
[+] matthewmacleod|9 years ago|reply
There might be tariffs, and there might be concerns about moving data between the EU and a non-EU country.

It seems incredibly obvious that making lots of long-term investment when the future of the UK is so completely unknown would be a risky move. So you cut investment for a bit, and we see what happens later.

[+] pavlov|9 years ago|reply
The "why" is extensively covered in the article.
[+] toyg|9 years ago|reply
Did you RTFA ? They build servers in Eastern Europe and then ship them to UK datacentres. If tariffs come in, they would have to spend quite a bit more. As you correctly point out, a networked server is a networked server and will be reachable no matter what, so might as well drop it in Frankfurt or Amsterdam and save on the tariff.

This is in addition to the legislative issues about handling EU data, which may or may not be side-stepped by UK keeping all laws on the matter. But considering we'll badly need a free-trade agreement with the US right after we leave, that's likely one of the areas where the Americans will ask us to drop shields...

[+] gambiting|9 years ago|reply
EU enforces very strict data privacy laws. UK seems to be going in the exact opposite direction, with snoopers charter subjecting everyone to mass collection of data, and who knows how far UK will take it after British citizens lose the protection of EU. If I owned data centers I would also consider moving them elsewhere :P
[+] gcp|9 years ago|reply
Privacy laws? Safe Haven like provisions?