How nationally significant infrastructure project status could reshape the planning process for data centres

Last week, we were reminded of our reliance on data centres, as disruption to just one operator caused service outages, which impacted various everyday apps, including banking and social media favourites. The UK government has acknowledged the importance of data centres in modern society, this was reflected in the latest revision of the National Planning Policy Framework (NPPF) for England, which highlighted the need to support their development in relation to building a strong and competitive economy. 

In a timely statement on 21 October 2025, the Minister for Housing and Planning, Matthew Pennycook, announced progress regarding changes to the planning system to allow some proposed data centre developments to be considered through the Nationally Significant Infrastructure Projects (NSIPs) consenting regime. 

NSIPs, as defined by the Planning Act 2008, are typically large-scale projects such as road or energy schemes, that are considered to have national importance based on infrastructure thresholds. Applications for NSIP developments are managed by the Planning Inspectorate (PINS), are decided by the relevant Secretary of State, and are granted permission via a Development Consent Order (DCO). This differs from a standard planning application, which would be dealt with by the relevant Local Planning Authority (LPA). Notwithstanding this, the LPA(s), within which an NSIP site lies are statutory consultees in relation to the DCO. Overall, the aim is to provide a more streamlined, fair and time- efficient process.

Although this means that, going forward, applications for data centre developments may be processed differently, it does not omit the need for proposals to either conform to planning policy or provide a robust justification for any deviation from it. Equally, it does not eliminate the challenges faced when balancing policy objectives with data centre site requirements.

The NPPF also recognises that data centres have specific locational requirements. It notes that planning policies and decisions should make provision for clusters or networks of knowledge and data-driven, creative, or high-technology industries, and for new, expanded, or upgraded facilities and infrastructure that are needed to support the growth of these industries, specifically mentioning data centres and grid connections.

Whilst power availability is considered key to unlocking potential data centre sites, the backdrop of climate change and policy shifts towards a more sustainable future cannot be ignored. As such, it is imperative that environmental factors, including carbon emissions, flood risk, and biodiversity as well as social and economic factors, such as health and employment, are given due consideration in the planning process. 

The NPPF emphasises the need for planning policies to facilitate developments that meets the needs of a modern economy, including by identifying suitable locations for development. Data centre proposals can present opportunities, such as bringing brownfield sites back into use, creating new high-quality training and employment opportunities, which can act as a catalyst for further developments, increasing the prosperity of the local area. Additionally, the benefits of data centre schemes can be maximised by incorporating on-site renewable energy and biodiversity net gain, therefore, meeting the aspirations of planning policy in relation to the social, economic and environmental elements of sustainable development.

Given the increasingly vital role of data centres as part of our digital infrastructure, the recognition of some schemes as Nationally Significant Infrastructure Projects could mark a pivotal shift, allowing delivery to be streamlined as planning policy evolves to meet the complex and ever-changing demands of a resilient and sustainable economy.