Inflated Land Valuations Could Stall Data Centre Growth

Daphne Adjei of Google cautioned attendees of the UKREiiF conference that inflated valuations of land in AI Growth Zones could slow data centre expansion in the UK.

The UK Real Estate Investment & Infrastructure (UKREiiF) 2025 conference included an in-depth discussion of the impact of designating AI Growth Zones to support the Government’s AI Opportunities Action Plan.

An expert from Google warned that inflated land valuations in newly-designated AI Growth Zones could stall the expansion of the UK’s data centre sector, deterring investment and clouding assessment activities.

Daphne Adjei, Strategic Negotiator at Google, cautioned attendees of the UKREiiF conference in Leeds that a lack of advanced understanding of AI Growth Zones would result in unrealistic land values, destabilising investment and development plans.

AI Growth Zones, introduced in the UK Government’s AI Opportunities Action Plan earlier this year, are designed to fast-track data centre development by streamlining planning processes and accelerating access to clean energy. However, Adjei stressed that surveyors and valuers must move beyond “one-size-fits-all” models when assessing these plots.

 “The whole essence of a Growth Zone is the Government saying, ‘okay, we are going to expedite power where we can … For that to really materialise, I think sectors which are directly and indirectly impacted by an AI Growth Zone need to understand what it actually is,” said Adjei.

Traditional Metrics Overlook Data Centre Impact

Adjei questioned whether key stakeholders—including planners, surveyors, and local authorities—fully grasp the implications of the AI Growth Zone designation, which could impact factors like power availability, timelines, and planning permission status.

Adjei criticised the use of outdated planning metrics by local authorities. She argued that applying standard measures, like job creation per square foot, does not account for the broader economic impact of data centres.

“It’s an erroneous assumption,” she said. “Data centres may not generate dense employment, but they bring significant indirect benefits through infrastructure investment, local supply chains, and upskilling opportunities.”

Ms. Adjei also called for greater collaboration between operators and councils to improve understanding and avoid misaligned expectations.

“You don’t want local authorities developing tunnel vision because they don’t understand the function of a data centre,” she said. “That risks slowing down planning decisions and ultimately delaying much-needed investment.”

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