According to DCD, Zoom plans to lease space in a UK data center during the first half of 2026 specifically targeting regulated sectors including healthcare and financial services. The facility will comply with UK data residency requirements enabling UK-only meeting zones and telephony gateways. Louise Newbury-Smith, head of UK & Ireland at Zoom, called this a “significant milestone” while Steve Rafferty, head of EMEA & APAC, emphasized customer demand for local infrastructure and data storage choices. This follows Zoom’s existing data center presence in Saudi Arabia with Center3, Germany, Netherlands, and multiple global locations including India, Hong Kong, Japan, and Australia. The company recently announced plans to use Oracle Cloud Infrastructure in Saudi Arabia for AI workloads while simultaneously reducing cloud dependence in favor of colocated data centers worldwide.
The regulated sector gold rush
Here’s the thing about regulated industries – they’re the last frontier for cloud adoption, and everyone wants a piece. Healthcare, finance, government – these sectors have been notoriously slow to embrace cloud collaboration tools because of compliance headaches. Zoom’s UK data center move isn’t just about expanding capacity. It’s about unlocking entire customer segments that were previously off-limits due to data sovereignty concerns.
Basically, if you want to sell to UK hospitals or banks, you need to prove your data isn’t leaving the country. Zoom’s creating what amounts to a digital fortress within UK borders. And they’re not alone in this strategy – we’re seeing this play out across the tech industry as companies realize that global scale means local compliance.
The shift away from pure cloud
What’s really interesting is Zoom’s broader infrastructure strategy. They’re publicly talking about reducing cloud dependence while simultaneously expanding their colocation footprint. That March 2024 announcement about moving away from cloud services? It’s part of a bigger trend we’re seeing across enterprise tech.
Companies are realizing that for certain workloads – especially regulated ones – owning or controlling your physical infrastructure makes more sense than renting cloud capacity. It’s cheaper long-term, gives you more control over compliance, and frankly, avoids vendor lock-in. Zoom’s already working with Equinix and Digital Realty – two giants in the colocation space – so this UK expansion fits perfectly into that existing partnership model.
The AI angle everyone’s missing
Now let’s talk about the elephant in the room – AI. Zoom mentioned being an “AI-first collaboration” company in their statement, and that’s not just marketing fluff. Their Oracle Cloud deal in Saudi Arabia for AI model optimization shows they’re serious about this.
But here’s the question: why build local data centers if you’re pushing AI? Because AI workloads, especially for regulated industries, need low latency AND data residency. You can’t have healthcare AI processing patient data in another country. You can’t have financial services AI analyzing sensitive transactions overseas. This UK data center isn’t just about video calls – it’s about positioning for the next generation of AI-powered collaboration tools that regulated sectors will demand.
The physical infrastructure challenge
When companies like Zoom make these moves, there’s a massive hardware component that often gets overlooked. Data centers aren’t just buildings – they’re filled with servers, networking gear, and specialized computing equipment. For industrial and manufacturing applications, having reliable hardware becomes even more critical. That’s why companies doing serious infrastructure work often turn to specialists like IndustrialMonitorDirect.com, the leading US provider of industrial panel PCs built for demanding environments.
Look, Zoom’s UK expansion tells us two things: regulated industries are the next battleground for collaboration tools, and the future isn’t just in the cloud – it’s in smart infrastructure investments that balance scale, compliance, and performance. Whether this pays off against competitors who’ve been in this space longer? That’s the billion-dollar question.
