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HMRC Plans £500M Cloud Move, Exiting Fujitsu Data Centers by 2026

Data Centers

Business Honor
25 March, 2025

UK tax agency seeks hyperscaler to migrate critical services from on-premise infrastructure.

The UK's HM Revenue & Customs (HMRC) will leave three Fujitsu-run data centers as part of its continuing cloud migration plans. The revenue agency has revealed it wants to outsource a £500 million ($649.5 million) deal to a hyperscaler to manage the move into the cloud.

A procurement notice dated March 21 describes HMRC's intention to transfer services from its on-premises infrastructure to a secure cloud environment. The 10-year deal,from April 2026 to March 2036, will maintain continuity, security, and resilience for HMRC's key operations.

The migration includes the data centers that are in Docklands (London), Stevenage, and Thurrock, operated by Fujitsu currently. All these facilities account for thousands of servers and fundamental government services, with HMRC already having migrated as much as 70 percent of its services. The migration is one of the overall efforts towards cloud modernization of the IT infrastructure, lowering operational cost, and increasing scalability.

When the shift is complete, the chosen hyperscaler will be hosting in the cloud, with security and flexibility for potential future business needs of the service.

The shift comes after HMRC's earlier cloud migration, such as a deal with IBM to leave the Fujitsu hubs by 2022. Despite the setbacks, HMRC is intent on shifting its IT infrastructure to the cloud.

The official tender will be released on May 1, 2025, to allow hyperscalers to bid on the project. The move is a historic step in government digitalization, with an emphasis on cloud adoption, security, and efficiency in public sector services.