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Home PRIVATE EQUITY

UK’s HMRC nears data center exit program

dcdby dcd
August 11, 2025
Reading Time: 5 mins read
in PRIVATE EQUITY, UK&IRELAND
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The UK’s HM Revenue & Customs seems to be nearing its data center exit project, having published a series of pipeline notices.

Most notable is the pipeline notice actually titled “Data Centre Exit” which is described as a contract to “remove HMRC from its on-premise hosting services to the public cloud.”

No value for that contract has been provided in the pipeline notice, but in March 2025, HMRC was seeking a hyperscale partner to manage the “migration of servers from the current on-premise solution to the hyperscaler’s cloud environment” in a £500m ($649.5m) 10-year contract, expected to go to a single hyperscaler. The new pipeline notice is also for a 10-year contract, running from April 2026 to March 2036.



HMRC headquarters

– Thinkstock / mikeinlondon

HMRC expects to publish an actual tender notice tomorrow, August 12.

Other pipeline notices shared by HMRC include for the replacement of digital and legacy application services, a call for SAP Ariba Cloud Services – set to run from January 2027 to December 2030, and for data platform services running from December 2025 to November 2028. The department is also seeking providers for other platforms and analytics services.

The department has also published a pipeline contract dubbed “Legacy – Retained HMRC Services Contract” covering July 2027 to June 2030. This is likely to extend HMRC’s ongoing contract with Fujitsu to cover a transition period. No value for the legacy contract was provided.

HMRC has long been seeking to exit the three data centers it uses, operated by Fujitsu.

Fujitsu operates three data centers across the UK; one in the Docklands, London; another in Stevenage, Hertfordshire, with 3,688 sqm (39,697 sq ft) of floorspace across six data halls that opened in 2010; the third facility is in Thurrock, Essex, offering 5,100 sqm (54,895 sq ft) of floorspace across four data halls.

HMRC previously contracted IBM to help it exit the Fujitsu data centers, at the time with an aimed exit of June 2022. The department has since continued working on its migration efforts, but as of August 2024, the department was around 70 percent completed.

In late June 2025, HMRC signed yet another extension with Fujitsu – valued at £220.3 million ($301.9m). That was said to only apply for a “limited time and strict terms,” and was described by HMRC as a contingency measure. The contract runs until 2028.

Fujitsu is the company behind the UK Post Office’s error-ridden Horizon system, which led to around 900 post office branch managers being wrongly prosecuted for fraud during the 1999-2015 period, with at least 102 of those convictions overturned by March 2024.

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Read the orginal article: https://www.datacenterdynamics.com/en/news/uks-hmrc-nears-data-center-exit-program/

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