The first few weeks of the new Government has provided some positive headlines for the data centre sector. The recovery¹ of two major data centre appeals in the greenbelt and the impending consultation on a new ‘growth focussed’ NPPF bode well, but time will tell whether this initial flurry of support translates into clear planning policy guidance and the efficient delivery of the country’s future data centre needs.

There is currently no strategic planning guidance from Central Government in relation to data centres, with the current NPPF being silent on such development. However, the Labour manifesto, as part of its vision to ‘kickstart economic growth’, included the emphasis on driving innovation and specifically referred to removing the planning barriers to new datacentres.

In her first major speech, chancellor Rachel Reeves gave strong emphasis to planning reforms, including an update to the NPPF and consultation on a new ‘growth-focused’ approach to the planning system. The consultation on the emerging NPPF is expected by the end of the month and it is hoped that this will include explicit reference to data centres.

In the same speech, the chancellor welcomed the decision by the new Secretary of State and Deputy PM Angela Rayner to recover¹ two planning appeals for data centre schemes in Buckinghamshire and Hertfordshire, both of which concerned large facilities on green belt sites.

The first appeal relates to an outline application (23/1068/OUT) submitted to Three Rivers District Council in Hertfordshire for an 84,000 square metre data centre. The application was refused in January 2024 with the LPA considering that it would constitute “inappropriate development in the green belt” and that its “siting, scale, height and massing would fail to protect and enhance the natural environment”.

The second appeal relates to an outline application for a 65,000 square metre data centre in Buckinghamshire (Ref PL/22/4145/OA) refused by Buckinghamshire Council in October 2023 as being inappropriate development in the greenbelt. Both were subsequently appealed to the Planning Inspectorate.

In justifying this intervention, Angela Rayner has confirmed that the benefit of development will be a central consideration and that she will not hesitate to review an application where the potential gain for the regional and national economy warrants it.

Separately, but relatedly, it is well known that Labour pledged in its manifesto to take a “more strategic approach” to the release of green belt land via the release of “lower quality ‘grey belt’ land”, while maintaining a “brownfield first approach”.

The potential policy changes to free up lower quality greenbelt land combined with the apparent willingness to intervene in decisions where there are substantive economic benefits must be viewed as a major positive for the sector and the final decision of these two appeals will be eagerly awaited by the industry.

1 A recovered appeal is one where instead of an Inspector at the Planning Inspectorate making the decision, they will make a recommendation on how they believe the appeal should be determined. This will then be passed to the Secretary of State to make the decision, taking into account the Inspector’s recommendation.