Government to hand ‘presumption of consent’ to nationally significant data centre developments

The proposals, which are out for consultation, will allow data centre developers in England to seek development consent under the Nationally Significant Infrastructure Project (NSIP) regime.

A 100MW minimum threshold has been set for inclusion in the NSIP process and excludes schemes on the green belt, with the route meant to be reserved for only the most nationally significant developments.

Developers with NSIP ambitions must convince the government that their scheme will lower electricity bills for residents, invest in local communities, adhere to high environmental standards, create jobs and “drive industrialisation”.

The consultation comes shortly chancellor John Healey revealed plans for a new British Data ⁠Centre Covenant, which will task data centre developers with providing local benefits in return for priority grid connections.

Elliot Dommett, associate planner at design, engineering, architecture, and environmental consultant Stantec, said: “Recognising wider pressures across England, the draft NPS and Data Centre Covenant make water and energy efficiency considerations even more fundamental to planning decisions.

“The government even appears to be directing developers towards funding the grid infrastructure needed to facilitate a connection before developing on-site generation to meet their own needs, which the NPS states can only be used by ‘exceptionally strategic’ projects.”

Nick Heard, associate director at Savills, said the draft NPS signalled a new chapter for data centre planning.

He added: “The presumption of consent reinforces the government’s commitment to supporting the continued expansion of the sector, with the exclusion of land within the green belt being notable.

“Many applications already perform well against the five elements of the Data Centre Covenant, but it is challenging to see how a data centre proposal can lower electricity bills without exporting waste heat or funding upstream grid improvements.”

The draft NPS is the latest in a series of steps taken by Labour to attract data centre investment, including the sector’s designation as Critical National Infrastructure (CNI) and the formation of AI Growth Zones (AIGZs).

The government estimates that these measures have contributed to a total of £19.4bn in foreign direct investment capital expenditure into the UK since July 2024.

Minister for artificial intelligence Kanishka Narayan said: “We must take control over the development of data centres and ensure that the country and host communities benefit from them. We must be clear about what we expect in return: infrastructure that strengthens our national sovereignty, protects bill payers, delivers real benefits for local communities and helps reindustrialise Britain.”

The NPS consultation closes on 8 January.