National Planning Policy Framework: the case for data centres

The Savills Blog

National Planning Policy Framework: the case for data centres

Whilst much of the focus on planning reform – and many of the changes set out in the recent consultation version of the National Planning Policy Framework (NPPF) – has been on housing delivery, the new government has also set its sights on planning for data centres. 

This was something that was promised in the Labour Party’s manifesto, which stated that ‘the current planning regime acts as a major brake on economic growth’, and specifying that reform must ‘remove planning barriers to new data centres’.

Swift action has already been taken

Action has been swift; within a matter of days of coming into government, the Secretary of State for Housing, Communities and Local Government, Angela Rayner, recovered two appeals for data centres on previously developed land within the green belt in Buckinghamshire and Hertfordshire.

This was seen by many as an early indication of its willingness to intervene directly in the planning process presumably to approve developments that, whilst locally contentious, could deliver a significant economic dividend. There is a chain of similar data centre sites within this part of outer London and it follows that proposals for these sites will continue to come forward with many presumably moving towards a positive determination, whether by the local planning authorities they are located within or by the Secretary of State.

The consultation version of the NPPF highlights the significance the government is placing on data centres. As did the secretary of state’s 30 July statement to the House of Commons in which she said that ‘we’re making it easier to build laboratories, gigafactories, data centres and electricity grid connections’.  

Data centres and the NPPF

While the closest the previous NPPF got was to offer support for ‘data-driven, creative, or high technology industries’, this new consultation NPPF effectively seeks to do two things:

  • In determining planning applications, it states that local planning authorities (LPAs) should recognise that data centres are a form of infrastructure with specific locational requirements needed to support the modern digital economy
  • It places a requirement on LPAs to identify appropriate sites for data centres when preparing local plans

The direction for LPAs to positively determine applications for data centres above and beyond the usual presumption in favour of sustainable development is clear (and the secretary of state’s decision to recover two appeals indicates what could happen if they don’t), but the devil will be in the detail on the second point. If this is calling for local plans to allocate land specifically for data centres, which authorities does it relate to and how will the quantum of floorspace that provision should be made for be determined?

Nationally Significant Infrastructure?

Hidden away in the ‘Scope of Consultation’ document that supports the consultation NPPF is a question on whether there should be an option for permitting data centres through the Nationally Significant Infrastructure Projects (NSIP) route, which would make the Planning Inspectorate (and ultimately the secretary of state) the decision maker. If supported by an appropriately positioned National Planning Statement, this could create a framework to allow data centres to come forward within parts of the green belt.

Optionality around the NSIP route, however, remains necessary as the conventional Town and Country Planning Act route could see quicker determinations where the principle of development is less contentious.

Savills also question how effective the NSIP process would be in allowing for amendments once an Order is made – particularly for a land use where technology and built form is evolving so quickly – and how good quality and sensitive design could be ensured for what tend to be large buildings.

Savills is acting on behalf of a range of data centre developers, occupiers, and funds across the UK, and are well placed to provide advice on data centre projects

 

Further information

Contact Nick Heard or Nick Green

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