The UK’s data centre sector has crossed a critical threshold. With the official announcement that data centres will enter the Nationally Significant Infrastructure Projects (NSIP) regime, projects are no longer confined to the relative uncertainty of the local planning system. Instead, promoters can seek determination through a Development Consent Order (DCO), with decisions made by the Secretary of State as strategically important business and commercial projects.

This is more than a procedural change. It signals a clear recognition that data centres are no longer niche or peripheral assets-they are critical national infrastructure.

Historically, data centre schemes have relied on Local Planning Authority (LPA) consent, often becoming entangled in local politics, misunderstanding, and inconsistent interpretation. Part of this has been driven by the challenge of communicating what data centres actually are and why they matter locally, alongside more technical planning issues such as the absence of a defined use class. Most schemes have been submitted under a B8 “flexible” designation, a generic category more closely associated with warehouses and distribution sheds. Yet data centres are far more complex and arguably perform a much more important strategic function, providing the backbone for digital operations both locally and nationally.

The NSIP route offers a fundamentally different proposition. Projects can be determined through a DCO, a more comprehensive process than a typical LPA application, but one that brings far greater certainty. Since January 2016, 31 DCOs have been determined by Government, with only two refusals. While the appropriateness of a data centre applying for a DCO will be assessed on a case-by-case basis-and will almost certainly be limited to the hyperscale projects-the very availability of this route provides a significant boost for the sector.

A common criticism of DCOs is speed. At present, they can take up to four years to prepare and secure consent, with around 15–18 months spent in examination by the Planning Inspectorate. These timelines reflect the complexity of projects typically brought forward under the regime-usually transport or energy schemes with extensive technical and strategic implications. However, the Government’s ambition to determine 25 NSIPs per year would reduce consenting times by around 25%, bringing the overall process closer to three years. If achieved, this would materially improve the attractiveness of the DCO route by lowering both risk and cost.

Crucially, NSIP status largely avoids the unpredictability that can arise from local opposition or political shifts. Engagement with councils, MPs, and communities remains central and is a vital part of any DCO process. But the final decision rests with Government. Recent ministerial interventions, including the overturning of refusals at Abbots Langley, and The Woodlands Landfill. It hasn’t been all plain sailing – recently, the Government admitted they should quash their decision to overturn the refusal on the West London Technology Park in Iver due to environmental impact and energy use. It is a timely reminder that the hoops of the planning process still need to be jumped through, and the NSIP regime would reinforce this.

For a sector that depends on long-term investment and delivery certainty, this change could be transformative.

Why Data Centres belong in the NSIP regime

Data centres meet the NSIP criteria not just in scale, but in strategic importance:

• They are large, nationally significant assets underpinning the digital economy.
• There remains widespread public uncertainty about what data centres actually are. Planning engagement often becomes an educational exercise-valuable for communities, developers, and the wider sector alike.
• Their impacts extend well beyond site boundaries, requiring early and meaningful coordination with regional stakeholders on power, water, and network capacity.
• The absence of a definitive use class has long created friction within the local planning system, making it an imperfect fit for assets of national significance.

In short, data centres operate at a scale and complexity that demands a national lens.

What this means for the Development Industry

The implications reach far beyond the data centre sector alone.

NSIP status brings certainty of delivery. Data centres act as hubs of growth: they attract businesses, generate employment, and catalyse demand for housing and services. Certainty unlocks confidence. not just for operators, but for the wider development ecosystem that grows around them.

It enables geographic diversification. The sector has historically clustered around London and Slough. National determination opens the door for other regions to benefit from digital infrastructure investment, spreading economic opportunity and resilience across the UK.

It creates a new avenue for developers. This is an invitation for the development industry and the data centre sector to work in tandem. Increased dialogue between land promoters, planners, infrastructure providers, and operators will be essential to unlock suitable sites and deliver at pace.

Fit strengthens the sector’s voice at a national level. Engagement becomes more strategic. Data centres can be placed firmly on the national agenda, with clearer and more consistent messaging when speaking to Government. Initiatives such as DC01UK have already demonstrated that local authorities can benefit from embracing this infrastructure rather than resisting it.

A turning point

Bringing data centres into the NSIP regime marks a turning point. It reflects a maturing understanding that digital infrastructure is as vital as roads, rail, and energy. For developers, investors, and policymakers alike, this is the start of a new age – one where data centres are planned not as anomalies within local systems, but as essential components of the nation’s future.