The excitement around the introduction of data centres into the Nationally Significant Infrastructure Project (NSIP) regime is gathering pace, but when might we see the first development consent order (DCO) for a data centre?
This article explains what the inclusion of data centres in the NSIP regime means for developers. It also explores the recent regulatory changes, the benefits of DCOs, and highlights the expected timeline for a draft National Policy Statement (NPS) that will shape future projects.
The Infrastructure Planning (Business or Commercial Projects) (Amendment) Regulations are the legal equivalent of a Tipp-Ex mouse (does anyone still use those?) to update existing secondary legislation. Light touch, but its approval by the House of Lords on 20 November was a key step towards bringing large data centres into the planning regime for NSIPs under the Planning Act 2008. In doing so, data centre promoters will have the option of seeking powers of compulsory acquisition through a DCO – often cited as one of the main benefits – though it remains to be seen whether that will be a significant draw for anything other than the largest of projects.
The regulations will need to be made by the secretary of state, but once in force data centre promoters will have the option of requesting a section 35 direction for their project to be treated as an NSIP and allowing an application for a DCO to be pursued.
The question that follows – how soon will the NSIP regime be open for business for data centre DCO applications? The most obvious hurdle is the absence of an NPS for data centres to underpin the DCO consenting process.
When will we see a draft NPS? The government aims to publish a draft NPS for public consultation and parliamentary scrutiny shortly after the regulations are made. All very promising if unclear as to the timescales. More helpfully the government policy paper 'Delivering AI Growth Zones' published on 13 November states consultation on a draft data centres NPS will take place “in the next 3 months”.
The direction of travel is clear, but there is much to do over the course of 2026 to pull together a coherent legal and policy framework that can support the speedy consenting of large scale data centres. That being said, in cases where there is no designated NPS, section 105 of the Planning Act 2008 allows the secretary of state to consider any other matters of relevance and importance to their decision. NPS guidance indicates a draft NPS could be one such consideration. This may be particularly relevant for any data centre schemes already moving forward on the basis of co-location with a generating station under NPS EN-1 and EN-3.
For further information, please contact our planning and infrastructure consenting team.
