Data Centers in United Kingdom

Policy and incentives

On 12 September 2024 the UK government announced that data centres would be designated as Critical National Infrastructure, the first new designation since the Space and Defence sectors gained the status in 2015. Department for Science, Innovation and Technology (GOV.UK)

The Delivering AI Growth Zones policy paper of 13 November 2025 set out electricity discounts of up to £24/MWh in Scotland, £16/MWh in Cumbria and £14/MWh in the North East for data centres in AI Growth Zones, planned from April 2027 subject to legislative timetables. Department for Science, Innovation and Technology (GOV.UK)

Data centres have had a Climate Change Agreements umbrella agreement since 24 July 2014. It was amended in January 2022 to add a fifth target period, and in May 2022 to let facilities be added until 30 June 2022. GOV.UK (BEIS, now DESNZ)

Power and grid

Ofgem approved connections reform modification CMP434 (WACM2) on 15 April 2025, which introduced a 'first ready and needed, first connected' gated process for most new transmission connection applications; it was implemented on 10 June 2025. Ofgem

NESO stated that before connections reform the Great Britain connections queue had grown to over 700GW, with shovel-ready projects waiting up to 10 years for a connection. National Energy System Operator (NESO)

A DESNZ consultation published on 11 March 2026 stated that the queue for data centre connections was over 50GW at transmission alone, and that the transmission demand queue stood at 96GW at the end of June 2025. Department for Energy Security and Net Zero (GOV.UK)

On 29 July 2026 Ofgem opened a consultation, which closed in September 2026, proposing a data centre commitment fee and queue management milestones to reduce the number of non-viable projects in the connections queue. Ofgem

The Clean Power 2030 Action Plan defines its 2030 target as Great Britain generating enough clean power to meet total annual electricity demand, with clean sources producing at least 95% of Great Britain's generation in a typical weather year. Department for Energy Security and Net Zero (GOV.UK)

Land, zoning and sites

England's National Planning Policy Framework (paragraph 86(c)) says planning policies should identify suitable locations for uses such as laboratories, gigafactories, data centres, digital infrastructure, and freight and logistics. GOV.UK (MHCLG) – National Planning Policy Framework, chapter 6

SI 2026/13, made 7 January 2026 and in force 8 January 2026, adds data centres to the business or commercial projects that can be directed into the Nationally Significant Infrastructure Project consenting regime under the Planning Act 2008. legislation.gov.uk – Infrastructure Planning (Business or Commercial Projects) (Amendment) Regulations 2026

On 10 February 2025 the government said the first AI Growth Zone would be at Culham, Oxfordshire, and invited proposals for sites with large existing power connections of 500+ MW or a clear plan to increase energy capacity. GOV.UK (DSIT press release)

The government's AI Growth Zones collection lists zones announced for Oxfordshire (30 April 2025), the North East (16 September 2025), North Wales (13 November 2025), South Wales (20 November 2025) and Scotland (29 January 2026). GOV.UK (DSIT) – AI Growth Zones collection

The North Wales AI Growth Zone, confirmed on 13 November 2025, has a base at Prosperity Parc on Anglesey and another at Trawsfynydd in Gwynedd. GOV.UK (DSIT press release)

Demand and connectivity

A March 2026 parliamentary POSTnote says the UK has around 450 large data centres using about 2% of UK electricity (2.4 GW of capacity, NESO estimate, July 2025), and that London had more capacity than the other regions combined. UK Parliament POST – POSTnote 762: What are data centres and how sustainable are they?

Ofcom reported that, as of January 2026, full fibre was available to 82% of UK homes (24.9 million) and gigabit-capable broadband to 89% (27.1 million). Ofcom – Connected Nations update: Spring 2026

A September 2025 report by Parliament's Joint Committee on the National Security Strategy says around 64 subsea cables land in the UK, including 45 international systems, which carry 99% of UK international data traffic. UK Parliament JCNSS – Subsea telecommunications cables: resilience and crisis preparedness

Sustainability, water and climate

The Climate Change Act 2008, as amended in June 2019, requires the net UK carbon account for 2050 to be at least 100% lower than the 1990 baseline. legislation.gov.uk – Climate Change Act 2008, section 1

DESNZ's Digest of UK Energy Statistics 2026 reports that renewable sources supplied 52.1% of UK electricity generation in 2025. DESNZ – Digest of UK Energy Statistics (DUKES) 2026

POSTnote 762 (March 2026), citing a 2025 techUK operator survey, says around half of the data centres in England use water for cooling, and that planning authorities may ask for water impact assessments. UK Parliament POST – POSTnote 762

The Commons Environmental Audit Committee ran an inquiry into risks and opportunities to the sustainability of UK data centres, covering energy and water use and net zero; it closed to evidence on 6 April 2026 and held oral evidence sessions on 10 June and 1 July 2026. UK Parliament – Environmental Audit Committee inquiry