The UK planning system can no longer afford to overlook digital infrastructure and delivering more data centres must be a national priority, argues Sara Dutfield of Turley
Just as the development of new roads and canals fuelled England’s growth during the Industrial Revolution, the Digital Revolution has been driven by a similar investment in critical digital infrastructure to facilitate more efficient data sharing and consumption. While often overlooked, behind the digital platforms and services that pervade all aspects of our lives and the modern economy sits several hundred UK data centres responsible for storing the information that this new digital economy relies on to function.
Today, the UK can take pride in having Europe’s largest data market – the UK data economy has the biggest overall impact of any EU country in absolute terms, sitting at an estimated £125bn in 2021. However, the data centres responsible for this rarely receive the attention owed to such vital economic and social infrastructure. In fact, despite supporting a fast-growing internet economy, the development of new data centres faces an uphill battle, particularly within the UK planning system.
Ultimately, failure to understand and effectively address the barriers to delivering these new data centres leaves the UK at risk of losing its leadership position at a time when we can least afford it.
Lack of a coordinated national strategy
One of the most overt barriers to increasing the number of data centres is the lack of a coordinated approach from central authorities offering guidance and support to stakeholders across key industries. For instance, there is no national data centre strategy for either England or the wider UK, and data centres were omitted from both the last Industrial Strategy and the Digital Strategy, while the National Planning Policy Framework (NPPF) failed to even mention data centres in the section specifically dealing with digital infrastructure.
The lack of coordinated support can be a real impediment to new development. For instance, with no mention of data centres in planning policy guidance, many planners are ill-equipped on how best to deal with their planning application, which can cause unnecessary delays. The fact is that finding sites suitable for data centre development is far from a simple task – with highly specific requirements around power supply and bandwidth. The UK planning system should be working to facilitate and support, not burdening this challenging endeavour further.
This lack of planning and strategy represents a massive missed opportunity; data centres have the potential to be one of the most powerful drivers of economic growth for the country, with each new data centre contributing between £397m and £437m GVA per year to the UK economy.
Looking to our competitors, we see that the Norwegian government launched its own national data centre strategy back in 2018. Rather than working together to build on our existing strengths in data infrastructure, we are flying blind into an uncertain future.
In the more immediate future, to ensure planners understand the importance of delivering data centres, one positive step forward would be to rectify the inappropriate land use class currently assigned to data centres. Under the current classification, data centres are typically classified as either B8 or Sui Generis – the former reflects their primary logistical purpose of storage and distribution, but their impact and benefits differ substantially from a traditional logistics operation.
It would seem far more appropriate to classify data centres as economic (or business class) development given their contribution to both the local and national economy. As local authorities’ plans are created with strict class use around traditional land usage, the lack of clarity and consistency around the classification of data centres often leaves them overlooked by relevant authorities.
However, even when planning permission is secured, another significant barrier to delivery is local opposition from the community and how developers can best address the concerns of those residents in proximity to new data centres.
Lack of support from local communities
Like any medium- to large-scale logistics development, data centres can receive pushback from local communities for a variety of reasons. These can range from environmental concerns and drainage of local energy supply to the impact on the landscape (ie an architectural style inconsistent with the surrounding area). To build a coalition of support for new data centres, it is important to address these regular concerns and shift the wider narrative around the value of these developments.
By proactively engaging with the local community and emphasising how data centres are responsible for high-skilled local job creation – both directly and indirectly along the high-value supply chain line – as well as the increased interest from new businesses in search of high-connectivity locations, developers can help to temper backlash and local opposition.
While there will always be a degree of tension between logistics and residential developments co-habiting, we have seen successful cases where data centres have been accepted by residents. For instance, Slough Trading Estate – which is home to the world’s second-largest data centre hub – also has over 1,000 resident units. The area now enjoys the status of a global destination for technology and enterprise, while also being a home to thousands of proud residents.
It is clear that the UK planning system must begin to treat the delivery of new data centres as a priority infrastructure, particularly if we wish to deliver on the ambitious UK Digital Strategy and support long-term economic growth.
Decision makers are yet to fully recognise the role data centres play in driving the UK’s economy forward, key stakeholders across the planning sector must now push for a national commitment to delivering data centres and raise awareness of the opportunities for local communities in embracing this new utility.
Sara Dutfield
Head of planning South East
Turley
Tel: +44 (0)20 7851 4010
