The Labour government is seeking input through a consultation process on its proposal to overhaul the planning system to facilitate the development of datacentres in the UK. Led by the Ministry of Housing, Communities and Local Government, the consultation aims to implement immediate changes to the National Planning Policy Framework to boost housing supply and enhance economic growth in the country. The consultation period will last until 24 September 2024.
The government’s initiative, outlined in its pre-election manifesto, is focused on supporting economic growth in key sectors such as datacentres, laboratories, gigafactories, and digital economies to align with the industrial strategy and local growth plans. Following their recent rise to power on 5 July, the Labour government has already taken steps to support datacentre projects previously denied approval, with two projects in Buckinghamshire and Hertfordshire under review.
The consultation document proposes several changes to the planning system to benefit datacentre developers, including the identification of grey belt land within protected Green Belt areas for potential development needs. Additionally, suggestions to broaden the definition of brownfield land and revise planning rules for Nationally Significant Infrastructure Projects are being considered.
Datacentres play a significant role in generating revenue and job opportunities in the tech sector, and the proposal aims to streamline the planning process by adding datacentres to the NSIP consenting regime. This would transfer decision-making authority from local authorities to the Planning Inspectorate and the secretary of state. While stakeholders in the datacentre market have expressed cautious optimism about the proposed changes, they emphasize the importance of balancing progress with environmental considerations.