New information has surfaced regarding a government-supported initiative to establish a £3.75 billion hyperscale data center on Green Belt land adjacent to the South Mimms service station in Hertfordshire. This follows the release of comprehensive planning documents for the proposed development.
The project is managed by DC01UK, a joint venture formed in July 2022 between renewable energy consultancy Chiltern Green Energy and property developer Griggs Homes. This marks their first collaborative effort in data center development. However, Griggs Homes has prior experience in the field; it gained planning permission in 2022 for a 30,000-square-meter data center in Bushey, Hertfordshire, which was subsequently sold to colocation firm Ark Data Centres.
On September 9, 2024, a set of documents supporting the DC01UK project was submitted to the Hertsmere Borough Council planning office, seeking outline planning permission. This request essentially asks the council to consider whether the proposed use of the land is acceptable in principle.
### Analyzing the Planning Documents
According to the planning documents, DC01UK aims to secure permission for a phased development that includes up to 187,000 square meters of data center space, along with ancillary offices, plant and equipment, and a substation. If successful, DC01UK will transfer construction responsibilities to an unspecified “end-user,” who will have the flexibility to customize the facility’s design according to their needs.
The documents indicate that various potential occupants have been approached about leasing the site, targeting both colocation companies and members of the hyperscale data center community. According to the documents, “The applicant [DC01UK] does not operate data centers.” Therefore, they submitted an outline planning application to confirm whether the development is acceptable at this preliminary stage. If the local council grants approval, the end user must submit specific designs to advance the project, with further details regarding access, landscaping, layout, and scale to be determined later.
### Weighing Economic Growth Against Local Concerns
The Hertsmere Borough Council planning portal indicates that since the application’s submission on September 9, 2024, five objections have arisen alongside eight supportive submissions. Documents reviewed by Computer Weekly outline various concerns, including the proposed site’s impact on Green Belt land, local biodiversity, and traffic issues.
Shortly after DC01UK’s planning application was filed, the Department of Science, Innovation and Technology (DSIT) issued a press release designating data centers as critical national infrastructure (CNI). The release highlighted that this classification not only provides protection against cyber threats but also instills greater confidence among developers investing in large-scale data center projects, such as the one proposed by DC01UK.
“The substantial £3.75 billion private investment in Hertfordshire reflects confidence in our plans and exemplifies our commitment to harnessing technological advancements to boost our economy,” remarked Technology Secretary Peter Kyle.
### Community Assurance
Despite government backing, Hertsmere Borough Council Leader Jeremy Newmark assured residents that their concerns will be addressed throughout the planning process. His remarks suggest some existing local support for the project. “The application will undergo the planning process, during which we will engage with residents and conduct a public consultation for feedback,” he stated. “I believe local residents will see the benefits of this project, and it has my full endorsement.”
Additionally, the Labour government is exploring plans to relax planning regulations governing data center developments to stimulate economic growth in the UK. These proposals would designate data centers as “nationally significant infrastructure projects,” allowing developers to bypass local council approvals and submit their plans directly to the Planning Inspectorate for evaluation before presenting them to the Secretary of State for final decisions.
### Streamlining Development
The intent behind these changes is to facilitate the swift approval of projects that may have previously faced local opposition. As Computer Weekly previously reported, the government is reviewing two earlier projects that faced rejection due to their placement on Green Belt land.
DC01UK’s plans have been submitted before the consultation period for reclassifying data centers as “nationally significant infrastructure projects” closes on September 24, 2024. If the government proceeds with these changes, it could ease the pathway for whoever ultimately takes over the site, particularly as DC01UK aims for a 2026 submission date for further planning by the new owner.
For those opposed to the DC01UK development, this anticipation of smoother approvals may suggest an inevitable progression for the project, regardless of local sentiments. Nonetheless, Andrew Jay, head of data center solutions for Europe, the Middle East, and Africa at CBRE, emphasizes that data center operators are mindful of public perception and community relations. “The industry recognizes the importance of balancing development with local needs,” he stated. “Such projects typically bring significant investment to the UK, which is a positive development.”
### Commitment to the Community
To address community concerns, operators often commit to improving the landscapes around their data centers or contribute to local projects. Some also fund enhancements to regional electricity substations to accommodate increased demand. Investments in heat exchangers for their facilities are becoming more common, offering an opportunity to utilize excess heat for district heating in the surrounding area. Jay noted, “Many new data centers are looking for ways to utilize their excess heat, demonstrating a commitment to being good neighbors.”
Notably, DC01UK’s planning documents do not propose heat reuse as a community benefit, but they emphasize the economic advantages the project may bring to the local area in both the short and long term. A detailed economic benefits report submitted by Stantec estimates that the proposed data center could create about 100 jobs once the first phase is completed, increasing to 200 jobs by 2031 when all three buildings are operational. These positions are projected to generate an estimated £38.5 million in gross value added (GVA) to the local economy, with an anticipated annual indirect benefit of £906.8 million GVA and support for nearly 11,000 jobs in the region once fully operational.
### Generating Interest
While it remains to be seen how the outline planning application will be reviewed, Knight Frank, a real estate consultancy, has indicated that the site has garnered interest from two colocation providers willing to occupy the entirety of the area. The Knight Frank document describes the site as a “prime data center location” due to its access to essential infrastructure such as power and fiber. They note a reservation of 400 MVA directly from the National Grid, expected to be available in October 2029, aligning with DC01UK’s target for operational readiness.
As the local planning office considers the DC01UK proposal, the outcome will also hinge on the new government’s efforts to modify planning regulations and enhance the status of the UK data center industry.