Planning Data Centres in the UK

One of the most significant recent developments in UK planning policy is the designation of large data centres as Nationally Significant Infrastructure Projects ("NSIPs"). This change was announced by the Government in 2024 and came into force on 8 January 2026.

This designation fundamentally changes how planning applications for such facilities are processed. Under the NSIP regime, qualifying data centre applications may no longer be determined by the relevant Local Planning Authority ("LPA"). Developers of data centre projects may now request that their scheme is "opted in" to the NSIP regime by way of a direction from the Secretary of State (under section 35 of the Planning Act 2008), where the proposed data centre is considered to be of 'national significance' and it meets the other requirements in section 35 of the Planning Act. The Government has confirmed that these questions of whether a scheme meets the requirements of section 35 of the Planning Act will be addressed through a new National Policy Statement ("NPS") for data centres, to be prepared by the Department for Science, Innovation and Technology. The new NPS is expected to set out the policy framework for decision making, including parameters and factors relevant to determining 'national significance' for the purposes of section 35. If a direction is made, the application must be submitted directly to the Planning Inspectorate, which examines the application and makes a recommendation to the relevant Secretary of State, who then grants a Development Consent Order ("DCO").

This is a significant procedural shift with major practical implications for developers. The primary benefits of the NSIP regime are speed and certainty. The DCO process operates to statutory timetables, with examinations typically taking six months and a decision following within a further three months. For large-scale data centre projects that might otherwise face years of uncertainty navigating local planning politics, this provides a far more predictable pathway. A DCO also acts as a 'one stop shop' combining several consents to, for example, permit associated infrastructure (such as access roads) within a single authorisation, reducing the need for multiple separate consents to be obtained.

The NSIP designation also signals something important politically: the UK government has explicitly recognised in planning terms that data centres are critical national infrastructure, equivalent in strategic importance to major energy projects or transport infrastructure. This framing matters when projects face opposition, because decision-makers must weigh local concerns against clear statements of national need. In addition, developers can refer to the National Policy Statement relevant to data centres, which provides the policy framework against which DCO applications are assessed and establishes a strong presumption in favour of consenting qualifying projects where the need case is demonstrated.

For projects that do choose to opt in to the NSIP regime that do not meet the requirements of section 35, the standard planning application process still applies, in which the LPA is the decision-maker.

AI Growth Zones ("AIGZs") represent another important policy intervention, introduced as part of the UK government's broader industrial strategy and AI ambitions. As discussed in an earlier briefing, they are designated geographic areas, identified in partnership between central government, local authorities, and industry, specifically intended to accelerate the delivery of the digital and physical infrastructure needed to support artificial intelligence development, including data centres.

They work by concentrating development in pre-identified zones in which the development of data centres is supported by streamlining the planning process and reserving and reallocating grid capacity. Several locations have been identified or are under consideration as AIGZs, often areas with existing industrial land, available power capacity, or proximity to major connectivity infrastructure.

Developing a data centre in an AIGZ is advantageous because:

1. It can significantly reduce planning risk. Local plans and supplementary planning guidance in these zones typically include and confirm the acceptability of data centre uses, meaning that planning applications for this use are less likely to face objections based on principle.
   
   
2. AIGZs are intended to be accompanied by coordinated investment in grid infrastructure — one of the most significant constraints on data centre development in the UK — which means power connection timescales, often a critical path issue, may be shortened.
   
   
3. Locating a project within an AIGZ sends a signal to investors, occupiers, and lenders that the development has implicit government backing, which can be commercially valuable.

For developers, the practical implication is that early engagement with whether a proposed site falls within or near a designated AIGZ should form part of any site selection process. The planning landscape within these zones is materially more favourable with a strong presumption in favour of granting planning permission. Consequently, pre-application engagement with the relevant local authority is likely to be more productive.

LPAs will assess proposals against their local development plan, national planning policy set out in the National Planning Policy Framework and Planning Practice Guidance, and any other material considerations. The key factors that the LPA will usually consider are:

1. Land use and policy compliance - the LPA will first assess whether the proposed use is acceptable in principle in the location proposed. Data centres are typically directed to employment land or, in some cases, edge-of-settlement locations. Applications on Green Belt land face significant policy barriers, with developers needing to demonstrate very special circumstances.
   
   
2. Visual impact and design - Data centres are large, bulky structures and their visual impact on the surrounding landscape is a material consideration. High-quality design, appropriate landscaping, and sensitive use of materials will all be important, particularly in rural or sensitive settings.
   
   
3. Highways and access - Despite employing relatively few staff, data centres can generate significant ongoing traffic movements due to the delivery and maintenance of equipment. A robust Transport Assessment will therefore be required.
   
   
4. Energy and sustainability - LPAs are increasingly focused on energy efficiency, renewable energy provision, and carbon impacts. Developers should be prepared to demonstrate compliance with local sustainability policies and, where possible, explore opportunities for waste heat recovery and district heating connections.
   
   
5. Flood risk and drainage - Given the sensitivity of data centre operations to flooding, site selection and drainage strategy will be scrutinised carefully.
   
   
6. Noise and amenity - Cooling plant and backup generators can generate significant noise so a detailed noise impact assessment will almost always be required, particularly if there are residential buildings nearby.

The planning framework for data centres in the UK is rapidly evolving to reflect the sector's strategic importance.  Whether through the NSIP regime, AI Growth Zone designations, or conventional LPA processes, early engagement with the planning system — and a clear understanding of the policy landscape — is essential for successful data centre development.