The UK's new Labour government is beginning to show its teeth, as Deputy Prime Minister, Angela Rayner, has called for a review of two previously rejected planning applications which sought approval to build data centres on Green Belt land. These applications will now be reviewed by a planning officer designated by the Secretary of State for Levelling Up, Housing and Communities rather than a local Planning Inspector. The designated individual will make a determination based upon the potential economic gain that the sites could deliver.

This decision comes on the back of the government declaring that going forward, data centres will be deemed to be buildings of critical national infrastructure. This declaration showcases the government's commitment to transforming the UK's digital landscape, enhancing its resilience and stimulating growth across a wide range of industry sectors.

Why data centres are considered so important

As the UK continues along its rapid path of digital transformation, we are becoming more aware of the risks and opportunities that these emerging technologies offer to businesses. 5G, the Internet of Things, Artificial Intelligence and automation innovations look set to transform the way in which major industry sectors operate, streamlining operations and increasing productivity, while simultaneously constraining costs.

Though there is significant benefit to such technologies, there are some considerable disadvantages that must be overcome in order to protect our country's digital assets and allow us to become global leaders in this field. Experience has shown that cyber threats are evolving at as rapid a pace as digital advances, while severe weather and logistical disruptions can have enormous implications. 

Data centres act as central hubs for a considerable amount of digital information, increasing efficiency and allowing emerging technologies to be safely developed and expanded, but for them to operate safely and effectively, they must be adequately protected. By centralising data from a wide range of sources in a data centre, targeted investment can be put in place to protect that site, its people and its services more effectively than is possible when that data logistics network is more convoluted. 

Overcoming the risks faced by data centres

Centralising data within a highly secure data centre infrastructure is a major step in building IT service resilience. Protecting that data requires a proactive risk assessment to be performed for each site, collaboratively by all stakeholders. Mitigations need to be put in place and incident response plans developed to protect operations and ensure that the likelihood of attacks and service outages is made as low as is reasonably practicable.

All risks to operations will be considered, including physical security, personnel security and cyber security. Plans will be put in place to enable backups and upgrades to be performed safely and swiftly, safeguarding data and maintaining continuous operations. By investing heavily in risk management protocols, the likelihood of data losses and breaches is significantly reduced and ensures that data centres can operate effectively and cost-efficiently, to the benefit of the businesses that rely on them.

Which data centre planning applications are under review?

Angela Rayner has called for a review of two data centre planning applications. The first is to develop a 700,000 square foot site in Buckinghamshire, known as the Court Lane Industrial Estate. This planning application was originally rejected in October 2023 and will now be reviewed with the aim of determining whether the existing industrial estate should be demolished and replaced by a data centre, ancillary offices, technical spaces and external plant. It will also consider the proposed security measures and landscaping that will be necessary to transform the site into a modern, safe and secure data centre facility.

The second is a request to develop a 900,000 square foot site near Abbots Langley, in Hertfordshire, which was originally rejected due to the significant harm it was seen to pose to the natural environment in the local area. The appeal states that developing this site, which is closely situated to the M25 motorway, will support economic growth and digital leadership and is a matter of national importance.

Government actions triggering increased confidence levels

As the government single-mindedly pursues all opportunities to improve the country's digital infrastructure, confidence in this construction industry sector is growing, as demonstrated by the recent £10 billion investment made by US firm Blackstone, in what is set to be Europe's largest AI data centre, situated in Blyth in Northumberland.

This substantial investment is expected to create 4,000 jobs, 1,200 of which will be in the field of construction, with building work planned to commence in 2025. Blackstone has further committed £110 million to improve transport links in the area to support this development. They have selected the UK as their investment locale of choice due to its transparent legal system, appetite for digital innovation and ample local talent.

What this means for Build Space

We are anticipating a spike in requests for specialist talent to support data centre projects, for all phases of the lifecycle, from project initiation through to in-service, on both permanent and temporary contracts. We have already begun the process of identifying suitable resources.

As a proactive and forward-looking talent partner to the construction industry, we specialise in securing the resources that you need, when you need them, and for as long as you need them. If your construction company is looking to pursue data centre contracts, talk to us first to make sure your team stands the best possible chance of success in this competitive environment.