Viewed NPPF recognizes that data processing centers are an integral part of economic growth

Rebecca Roffe is a partner and Chris Devitt is CMS Law Firm

The National Planning Policy Framework (NPPF) emphasizes the government’s commitment to economic growth through construction. The key to this growth are proposals for a modern technology -oriented economy, and nowhere is it more relevant than in the hot topic of data processing centers.

Increasing demand for storage solutions has led to the classification of data processing centers as a critical national infrastructure (CNI). In January, the Prime Minister’s speech has released a plan for AI government, which aims to “move quickly and take steps to win in a global race.” In principle for the construction industry, the plan implements AI (AIGZS) growth areas with increased planning powers, designed to accelerate the construction of AI infrastructure. With this addition of certainty and purchasing speed for data processing centers, contractors should soon find an increase in the pipeline of new tender projects.

“There is now a clear hope that local plans will include provisions that contribute to the development of data centers forward”

Viewed NPPF supports this intention. It states that planning policy should facilitate the development to meet the needs of the modern economy, including the definition of appropriate places for data processing centers, gigaffactories, digital infrastructure and logistics. The plan defines a plan for new or upgraded facilities and infrastructure that will be needed to support the growth of the industry.

For the construction industry, considering ways to attract the best talent to work on advanced projects, fresh support of data centers provides two special advantages: to attract experienced workers with a bait of potentially profitable projects and confidence in future work on preparing a young generation of employees. Both will be decisive to reduce experienced staff deficits, which is a problem for the construction industry.

Local push

The industry noted that the proposed changes in NPPF included the introduction of positive expectations that the relevant sites for digital infrastructure projects should be identified by local authorities and supported in decision -making. The Government also consulted the development of data processing centers, which is part of the nationally significant regime of the infrastructure project (NSIP). Inclusion in this mode will allow you to evaluate applications for data centers and be determined by the centralized planning inspection and the state secretary, not at the local level.

There is now a clear hope that local plans will include provisions that contribute to the development of data processing centers forward, although it remains to be clear how effectively local planning authorities will adhere to it.

NPPF is always a kingdom in which politics and planning meet. Governments can quickly make changes to NPPF and often seek to use it as an opportunity to establish the intentions of their administration policy at an early stage.

Work clearly seeks to be perceived as a growth administration. Time (and subsequent planning programs) will tell how efficient and popular it will be. However, including clear provisions for NPPF data processing centers and adopting provisions for the development of NSIP data processing centers are certainly positive steps for data processing centers and should further eliminate barriers for their development.

The inclusion of AIGZS is an interesting development, and the government seeks to test the first of them in Kalham, the headquarters of the UK atomic and energy management, which is looking for a private sector partner to develop one of the largest AI data centers in the UK with plans to scale up to 500 MW. If this public/private model is a sign of the future, it may overwhelm the sector.

Viewed NPPF is a significant step forward in the UK’s efforts to support data processing centers, and providing developers and contractors is an important role in supporting the country’s strategic economic growth. There is still a distance to travel before the blades are in the ground, but the prospects for the industry rarely look so promising.