Labour is set to override local councils to construct data centres on the green belt. This move aims to enhance the UK’s artificial intelligence sector.
Sir Keir Starmer’s Opposition believes that easing planning restrictions is essential to accommodate rising demand for cloud computing and AI. This decision has sparked various reactions from industry experts and local communities.
Designating Data Centres as Nationally Significant
Peter Kyle, the shadow science, innovation, and technology secretary, is considering designating data centres as nationally significant infrastructure projects. This change would enable developers to bypass local opposition.
The UK faces a shortage of data centres to meet the growing demand for cloud computing and AI. Relaxing planning rules could lead to more applications for data centres on the green belt, especially in the west London data corridor.
Industry experts argue that brownfield sites on green belts are among the few viable locations for large, modern data centres. By classifying these projects as nationally important, planning decisions would shift from local councils to ministers.
Industry Response to Planning Challenges
Last year, plans for the UK’s largest ‘hyperscale’ data centre, with a proposed £2.5bn investment, were blocked due to green belt protections. The decision was criticised as ‘green belt theology.’
Developers and investors, including Microsoft, have raised concerns over the difficulties in securing planning permission in Britain. Microsoft’s heavy investment in AI infrastructure has highlighted these challenges.
Microsoft and Google have announced new UK data centre projects in the past year. However, the cumbersome planning process remains a significant frustration for the industry.
Economic and Employment Impact
Large data centres typically provide hundreds of construction jobs and a smaller number of permanent positions once built.
Labour aims to leverage high-powered AI services to reduce NHS waiting times and enhance public services if elected.
Labour is focusing on technological opportunities amid spending constraints, seeking to boost productivity across various sectors.
Collaboration with Tech Industry
Darren Jones, the shadow chief secretary to the Treasury, is working with Peter Kyle and Pat McFadden to identify areas for AI deployment across government departments. This strategy is part of a broader effort to improve efficiency.
Pilot schemes are underway in four Welsh hospitals, using AI to predict patient discharge times accurately. This initiative aims to showcase the benefits of AI in healthcare.
Mr Kyle is expected to meet with tech companies at Imperial College London to secure support ahead of London Tech Week.
Calls for Reform
TechUK, the industry lobby group, has called for an overhaul of planning laws to support data centre construction. Current regulations class data centres as storage facilities, which complicates the approval process.
Nationally Significant Infrastructure Projects (NSIPs), such as airports and power plants, are managed by the Planning Inspectorate, bypassing local authorities.
Labour’s shadow justice secretary, Shabana Mahmood, stated that prisons would also be designated as nationally important to support their construction.
Labour’s Commitment to Planning Reform
Even if data centres are not classified as critically significant, Peter Kyle has assured the tech industry that Labour will reform planning laws to facilitate the development of more facilities.
The Government had published a consultation in December considering data centres as critical national infrastructure. However, it has yet to respond to the evidence collected.
Conclusion
Labour’s decision to prioritise data centres on the green belt signifies a strategic move to enhance the UK’s AI capabilities.
By focusing on technological advancements and planning reforms, Labour aims to position the UK as a leader in the AI sector.
Labour’s decision to prioritise data centres on the green belt signifies a strategic move to enhance the UK’s AI capabilities.
By focusing on technological advancements and planning reforms, Labour aims to position the UK as a leader in the AI sector.
