Beyond the Data Centre: Why the Most Successful UK Data Centre Companies Build Governance Before They Build in Europe

The European data centre market is experiencing unprecedented growth. Artificial intelligence, cloud computing, digital transformation and the increasing demand for digital sovereignty are driving billions of pounds of investment across the continent. While established markets such as Frankfurt, Amsterdam, Paris and Dublin continue to expand, significant opportunities are emerging in countries including Austria, Spain, Italy, Poland and the Nordic region.

For UK businesses operating within the data centre ecosystem, whether developers, engineering consultancies, contractors, technology providers or specialist service partners, Europe represents a natural next step. However, after more than three decades advising businesses on corporate growth, international expansion, mergers and acquisitions, and strategic finance, I have learned that entering a new market is rarely the hardest part.

The real challenge is building an organisation that is capable of operating successfully once it gets there. Too often, businesses focus on winning projects before they have established the commercial infrastructure needed to support sustainable international growth. In my experience, the organisations that achieve long-term success are those that invest in governance, people, financial structure and trusted local partnerships before they secure their first contract.

Expansion is about building a business, not just winning work
There is a misconception that expanding into Europe simply requires opening an office and employing local staff. The reality is very different. Every jurisdiction has its own corporate legislation, tax framework, payroll requirements, employment regulations, reporting obligations and commercial practices. These are not administrative matters to be dealt with after a project has been secured, they form the foundations upon which successful international businesses are built. Businesses that establish these foundations early can scale with confidence, respond more effectively to customer requirements and demonstrate the maturity that investors and clients increasingly expect.

Your people strategy becomes your growth strategy
One of the first challenges businesses encounter is managing people across borders. Questions quickly arise around local employment contracts, payroll administration, taxation, pensions, social security, immigration, employee mobility and employment law. In the data centre industry, where specialist engineers, commissioning teams and project managers are often deployed internationally, these considerations become business-critical.

A poorly planned people strategy can delay projects, increase costs and expose organisations to unnecessary risk. Conversely, businesses that invest in the right employment structures and local expertise create confidence, not only for employees but also for customers, investors and project partners.

Local partners are an investment, not an overhead
Throughout my career, one lesson has remained constant: no successful international business grows in isolation. The most successful organisations are built around trusted relationships. While expertise, strategy and investment are essential, sustainable international growth depends on surrounding yourself with people who genuinely understand the local market and are invested in your success.

I have never viewed our legal advisers, tax specialists, payroll experts or corporate advisers as external consultants. The very best become trusted members of your leadership team. They challenge your thinking, help you navigate unfamiliar territory, anticipate risks before they become problems and provide the confidence to make strategic decisions in new markets.

As we expanded our European operations, I have been fortunate to work alongside exceptional professionals who have consistently gone above and beyond what would normally be expected of an adviser. In Austria, Herta Vanas and her team at Vanas & Partner have provided invaluable guidance, insight and unwavering support as we established our presence and delivered projects within the Austrian market. Their commitment has extended far beyond professional advice, they have become trusted partners in our European growth journey.

The same can be said of our longstanding relationship with Peter de Heer and the team at Crowe Peak in the Netherlands. Their commercial insight, practical approach and deep understanding of the local business environment have played an important role in helping us navigate cross-border challenges with confidence. Time and again, they have demonstrated that the right partner doesn’t simply answer questions – they help shape better decisions.

To Herta, Peter and the wider teams that have supported FiveNines across Europe, I offer my sincere thanks. Their professionalism, integrity and willingness to go the extra mile have made a lasting contribution to our success. For any business considering international expansion, my advice is simple: choose your local partners as carefully as you choose your clients. The right people will become far more than advisers- they will become trusted colleagues, an extension of your leadership team and an integral part of your long-term success.

Our experience in Austria reinforced this lesson
At FiveNines Global Operations Ltd, we experienced these principles first-hand during our expansion into Austria. Having successfully delivered mission-critical infrastructure projects across Europe, including the successful delivery of both 15MW and 9MW data centre projects in Vienna, we recognised that supporting clients effectively required far more than engineering capability or project delivery expertise. It required establishing a genuine local presence, supported by the right commercial, financial and operational infrastructure.

For me, this was a practical demonstration that international expansion cannot be managed solely from a UK head office. Every market has its own way of operating. In Austria, we invested time in understanding the local corporate environment, employment legislation, payroll requirements, taxation, procurement practices and regulatory expectations before building our long-term presence. At the same time, we carefully selected experienced local legal advisers, tax specialists, payroll providers and corporate service partners who could provide the market knowledge that simply cannot be replicated remotely.

This investment was not driven by compliance for compliance’s sake. It was a strategic business decision. By putting the right governance and support structures in place early, we were able to mobilise resources more efficiently, support our clients with greater confidence, reduce operational risk and establish FiveNines as a credible long-term partner within the Austrian market. 

Today, our Austrian branch provides a platform from which we continue to support projects across Central Europe as part of our wider European growth strategy. The experience reinforced a lesson I have seen repeatedly throughout my career: technical expertise may win you the opportunity, but sustainable international growth is built on strong governance, trusted local partnerships and the willingness to invest in getting the foundations right from the outset. The businesses that view local tax advice, payroll expertise, legal support and corporate governance as strategic investments, rather than unavoidable costs are invariably the ones that scale faster, build stronger client relationships and create long-term value.

Supply chain governance is becoming a competitive advantage
Today’s data centre projects are delivered through highly integrated ecosystems of developers, general contractors, specialist subcontractors, consultants, technology vendors and professional advisers, often operating across several European jurisdictions. No organisation delivers these complex projects alone.

One of the biggest shifts I have witnessed is that clients and investors no longer assess only the capability of the principal contractor. They increasingly evaluate the strength, resilience and governance of the entire delivery ecosystem. As a general contractor, the businesses you appoint and the people they employ become an extension of your own organisation. Their conduct, professionalism and standards ultimately reflect your own.

That means responsibility extends well beyond programme delivery. It encompasses financial resilience, employment practices, payroll and tax compliance, health and safety, ESG commitments, ethical procurement and corporate governance throughout the supply chain. In many respects, your partners’ compliance is just as important as your own, because your client will judge the project by the collective performance of everyone involved.

For this reason, selecting supply chain partners should never be based solely on technical capability or commercial value. The right partners share your commitment to quality, integrity and governance. They understand that compliance is not a contractual obligation to be managed, but a business discipline that underpins trust, reduces risk and supports successful project delivery.

This is where trusted relationships become invaluable. Organisations that invest time in building a resilient supply chain, supported by partners who share the same values and standards, are better equipped to respond to regulatory requirements, mobilise projects efficiently and give investors and clients confidence that every aspect of delivery is being managed professionally.

Strong governance is therefore no longer simply about satisfying regulation. It has become a genuine competitive advantage, strengthening reputation, reducing operational risk, increasing investor confidence and demonstrating that your business has the maturity to deliver complex, international data centre projects successfully.

The entrepreneur’s lesson
People often ask me what the biggest challenge in international expansion has been. They expect the answer to involve engineering, contracts or competition. It rarely does. The biggest challenge is building an organisation that is ready for growth before growth arrives. For FiveNines, Austria taught us how to build that organisation. Madrid has shown us what’s possible when those foundations are in place. The lesson applies far beyond the data centre industry.

Whether you’re entering one new market or ten, sustainable international growth isn’t built on ambition alone. It’s built on governance, trusted partnerships, local knowledge and the humility to recognise that success in a new market begins by listening before leading. For me, that’s the real story behind international expansion and it’s a lesson I’ll continue to carry wherever FiveNines grows next.