In 2020, an AWS report described data centres as “the most important industry you’ve never heard of”. Five years on, we look at the growing demand for data centres, changes in planning legislation and the role GI has to play in finding suitable locations.
The demand for data centres
The growing use of cloud services and the need for more data storage has led to a robust increase in demand. This is likely to continue. According to a McKinsey report on AI and data centre capacity (October 24), the “global demand for data center capacity could rise at an annual rate of between 19 and 22 percent from 2023 to 2030…”
The UK’s existing 500+ data centres, some for use by a single organisation, will not be able to service demand.
Recognising the importance of data centres
Since September 2024, data centres have been recognised as critical national infrastructure (CNI). As The Register reported, “…the sector is expected to get special government support designed to prevent negative economic impacts of IT outages… cyberattacks, and extreme weather events.
That special support will come in the form of a dedicated CNI data infrastructure team comprised of “senior government officials” tasked with monitoring the threat landscape and anticipating potential risks. That team will also be responsible for coordinating an emergency response, should one be required.”
“Datacenters power our day-to-day lives and boost innovation in growing sectors like AI”
Peter Kyle, UK Secretary of State for Science, Innovation and Technology
Data centres and the economy
Data centres make a significant contribution to the UK economy. In January 25, Hartsmere Borough Council approved plans for a £3.75 billion data centre in Hertfordshire. The facility will become Europe’s largest cloud and artificial intelligence (AI) data centre, according to Techerati. Its proposers, DC01UK, claim that it will:
- Create approximately 500 construction jobs, with many of these anticipated to come from the local area
- Create approximately 200 highly-skilled jobs on-site
- Indirectly generate over £1.1 billion per annum GVA (Gross Value Added)
- Drive over £20 million in business rate revenue per annum, ensuring an increase in borough, county, and national public funding
- Generate 13,700 new employment opportunities throughout the UK’s digital economy
Why is the location of a data centre important?
Data centres need to be sited in the right location to ensure:
- Access to a stable power supply to power servers and robust cooling systems
- Fast, reliable Internet connectivity to ensure maximum uptime
- Availability of skilled workers
- Road infrastructure
- Security due to the value of data centre equipment and the data it holds
- Reduced climate-related risks
Climate-related risks for data centres
According to a recent article, ‘Future-Proofing Digital Infrastructure’, from TechUK, the UK’s technology trade association, climate risks are putting UK data centres under increasing pressure to adapt.
The author explains, “Heatwaves and water stress are identified as the highest climate risks for UK data centres. Heatwaves increase cooling demands and strain energy infrastructure, while water stress challenges the use of evaporative cooling systems. Building in redundancies across power, cooling, and connectivity systems is essential to maintaining operations under these conditions…
“The sector’s reliance on energy and water infrastructure poses significant risks. Inadequate grid capacity is particularly concerning as energy demand surges with the adoption of AI. Meanwhile, trade-offs between energy and water efficiency in cooling systems add complexity to resilience efforts.”
We should note that the drive for net zero has sustainability impacts for this resource-hungry industry.
Where are the UK’s data centres currently located?
According to an AWS report from 2020, 70% of the UK’s commercial data centre market is clustered in or around the M25 with a secondary cluster in Manchester. Unfortunately, the clustering of data centres increases the risk of localised flooding or power outages causing connectivity issues.
Changes to data centre planning requirements: NSIPs
Until recently, local councils have had the power to approve or reject data centre planning applications. However, data centre developers looking to build on green belt land can now apply for a fast-tracked scheme that prevents local councils from blocking applications. This is deemed to support “the government’s economic growth mission”.
The Nationally Significant Infrastructure Project (NSIP) scheme, applicable in England and Wales, allows developers of major infrastructures to bypass local planning requirements. Instead, they are able to apply to the central Planning Inspectorate (PINS), one of our clients, for a Development Consent Order (DCO). Following a PINS report, the Secretary of State decides if the development is appropriate.
The changing role of local authorities
PINS may now be responsible for deciding the fate of a planning application in the green belt but local authorities are still required to have input. According to Local Government Today, “Local authorities hosting NSIPs are statutory consultees in the DCO process and have a number of critical roles to play at each stage of the work. Advice from the PINS sets out the formal local authority roles in some detail as well as describing the different stages of the DCO process.”
One of the tasks falling to the local authority is the timely production of a Local Impact Report. This explores the likely impact of a project on the local authority’s area. Suggested content relating to location includes:
- Details of the characteristics of the local area, such as urban landscape qualities and nature conservation sites
- Any constraints relevant to the site and area
- Any local evidence of flooding
- Locations of, and impacts on, sensitive receptors
- Relevant planning history and issues
You can see a full list of required content here.
Using GIS to identify suitable locations
As outlined above, location intelligence plays a critical role in the effective siting of data centres. Mike Saunt, our MD, comments “Our end-to-end GIS, iShare in the Cloud, makes it easier for customers, such as PINS and local authorities, to access relevant data and quantify potential impacts. It includes a Spatial Data Warehouse for data storage and can be integrated with many back office systems, including planning.”
If you’re interested in talking to us about using GI to support critical decision-making, please contact us.
Find out more about NSIPs
Suffolk County Council has kindly shared a helpful reference guide to NSIPs for local authorities.
View the list of all NSIPs in England.