Government Recognises Data Centres as Nationally Significant Infrastructure
Written by Nicole Cappella Wed 29 Oct 2025
Matthew Pennycook, the Minister of State for Housing and Planning, has announced that the Government intends to recognise data centres as nationally significant infrastructure projects (NSIPs) under the 2008 Planning Act.
As he said in the announcement, “The Government is committed to ensuring that the planning system effectively facilitates development to meet the needs of a modern economy, including supporting essential digital infrastructure such as data centres.”
This designation will enable developers to apply for permits under the NSIP consenting regime, thereby circumventing the local and regional zoning approval process that has delayed data centre projects throughout the UK. Instead, NSIPs can get multiple consents replaced by a single Development Consent Order (DCO).
Data centres are not automatically eligible for the NSIP designation. NSIP will operate on an optional basis, allowing developers of qualifying data centres to request consideration for NSIP status if their projects meet the requirements.
The Government aims to bring these regulations into force in Q4 2025 or early 2026. At the same time, the UK Department for Science, Innovation & Technology (DSIT) will prepare a new data centre National Policy Statement (NPS), setting out the national policy framework, including thresholds, parameters, and requirements to qualify as an NSIP.
Why Data Centres Qualify for National Significance
Why is the Government making this an option for data centre construction? Using the NSIP designation, the UK Government can speed up the consent process, reducing delays from local communities.
It also ensures consistent decision-making at the national level for strategically important projects, rather than leaving them to disparate local priorities.
Finally, NSIP designation signals the Government’s commitment to supporting digital infrastructure as a key economic enabler in the UK’s modern economy.
Balancing National Growth with Local Oversight
The change comes after a broader consultation on the National Planning Policy Framework (NPPF) last year, which looked at how the planning system could better support economic growth in knowledge, creative, high-technology, and data-driven sectors.
For developers of large-scale data centre projects, the ability to opt into NSIP could bring key benefits: access to a single consenting route, clarity of process, potentially swifter decision-making, and a more national focus.
It is not all upside, however. An NSIP must be approved by the Secretary of State, rather than a local planning authority, which could result in more stringent requirements. Thresholds and parameters will be critical in deciding which data centres qualify for the designation. Scale, strategic value, and national significance will be important for this, but these specifics have not yet been finalised.
Finally, local communities may have concerns, since NSIPs limit the scope of local authority decision-making and may reduce local engagement with developments.
The move follows wider efforts to position digital infrastructure at the heart of UK growth policy. In September 2024, the Government granted UK data centres critical national infrastructure status, underscoring their role in economic resilience and digital transformation.
Written by Nicole Cappella Wed 29 Oct 2025