UK Data Centre Growth Spurt

UK Data Centre Growth Spurt

19 September 2025

The UK is experiencing a surge in data centre construction, fuelled by AI and cloud computing demands. To capitalise on this growth, the UK government is streamlining the planning process for data centre projects. Data centres have been designated as Critical National Infrastructure, potentially leading to faster planning approvals and attracting further investment. The government is also establishing AI Growth Zones, focusing on revitalising de-industrialised regions by attracting data centre investments. These zones aim to accelerate planning processes and improve access to the energy grid.

These initiatives include allowing major data centre projects to use the Nationally Significant Infrastructure Project (NSIP) planning regime, potentially bypassing local planning processes for a streamlined national consent. The UK government is further streamlining infrastructure planning, prioritising projects aligned with national objectives. This involves a new consultation and measures within the Planning and Infrastructure Bill to remove hurdles for essential economic and social infrastructure.

Private sector investments are also pouring into the UK data centre market, with companies committing billions to expand AI infrastructure. This influx of capital is expected to generate thousands of jobs and significantly contribute to the UK's GDP. The convergence of government support and private investment positions the UK as a key hub for digital infrastructure and a major player in the global data economy.

Source:ft.com

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Published on 19 September 2025
artificialintelligenceintelligencedatacentersaiinfrastructureukeconomyplanning
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