AI is associated with more data activity at UK businesses, but the available official figures do not prove that AI has caused storage requirements to rise or that firms generally cannot manage their data. The UK Business Data Survey 2026 shows that AI use is established among some businesses, while firms rely on a mix of cloud, on-premises and third-party arrangements.
What the UK figures say about AI and business data
The Department for Science, Innovation and Technology’s UK Business Data Survey 2026, published on 18 June 2026, reports results from businesses surveyed between October 2025 and January 2026. It found that 86% of UK businesses handled digitised data. Among businesses handling digitised data, 41% said they used AI for at least one purpose.
AI use was not evenly distributed: 82% of large businesses handling digitised data reported AI use, and uptake was also higher in knowledge-intensive sectors. Businesses using AI reported more data collection, analysis and sharing than businesses not using AI. That association is consistent with more data activity, but the survey does not show that AI caused storage growth or measure how much additional capacity firms need.
How UK businesses store and process data
The survey’s infrastructure responses show a mix of arrangements, not a single dominant model. Among businesses handling digitised data assigned to the relevant survey module, reported methods included:
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- 31% used a public cloud provider.
- 27% used servers on business premises.
- 19% used their own private cloud.
- 22% used a third party through software or a web solution.
- 6% used servers from an outsourced IT services company.
- 6% used company-owned servers in rented data-centre space.
These were not exclusive choices; a business could report more than one. The report also defines external data-centre storage as public cloud, third-party software or web solutions, and company-owned servers in rented data-centre space. By that definition, 29% relied entirely on external data centres.
Why storage challenges differ by business size
Infrastructure varies with the size and type of business. The survey found that 60% of large businesses reported using business-owned on-premises servers, compared with 23% of sole traders. More broadly, larger firms tended to have more developed and diversified infrastructure, while smaller firms and sole traders were more likely to rely on simpler or externally managed solutions.
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That variation matters when assessing the headline claim that firms are struggling. The survey does not establish that UK businesses generally have difficulty managing storage. It does, however, report that 20% of businesses storing data off-premises had experienced a server or cloud outage or downtime in the prior 12 months. This is a measure of reported disruption, not financial loss; the survey does not quantify the impact or explain the causes.
How to assess a business storage setup
The survey describes what firms use, but does not rank options by price, performance, security or suitability. A company deciding how to handle data generated or used in AI workflows should assess its own requirements:
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- Volume and growth: Estimate current data held and how quickly it is accumulating, including retained copies and working data.
- Access and latency: Determine which people, systems or AI tools need the data, how often they need it, and whether delays would disrupt work.
- Internal IT capacity: Consider who will configure, monitor, update and troubleshoot storage. A locally managed setup requires people and processes as well as hardware.
- Resilience and recovery: Define how services should continue during an outage and how data would be restored after loss or disruption.
- Sensitivity and obligations: Identify the data involved and the security, contractual or other requirements that apply to the business.
- Total operating cost: Compare ongoing costs for capacity, administration, connectivity, support and recovery—not just the initial purchase or storage rate.
A public cloud, private cloud, on-premises server or third-party software service can each be part of a business’s arrangement. The survey does not establish which is best for a particular firm, and its percentages should not be read as a recommendation.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the evidence does—and does not—establish
The latest survey supports a measured conclusion: digitised data is common among UK businesses, a substantial share of those firms use AI, and AI-using businesses report more data activity. Firms also use varied storage arrangements, with patterns differing by size. But the figures do not directly measure AI-driven storage growth or show that UK firms broadly struggle to manage storage. Any claim about rising capacity needs or management problems should therefore be assessed at the level of the individual business, rather than inferred from AI adoption alone.
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- Value NAS with RAID for centralized storage and backup for all your devices. Check out the LS 700 for enhanced features, cloud capabilities, macOS 26, and up to 7x faster performance than the LS 200.
- Connect the LinkStation to your router and enjoy shared network storage for your devices. The NAS is compatible with Windows and macOS*, and Buffalo's US-based support is on-hand 24/7 for installation walkthroughs. *Only for macOS 15 (Sequoia) and earlier. For macOS 26, check out our LS 700 series.
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- Storage Purpose-Built for Data Security – A NAS designed to keep your data safe, the LS200 features a closed system to reduce vulnerabilities from 3rd party apps and SSL encryption for secure file transfers.
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