Sunday, December 22, 2024

Labour to overrule councils to build data centres on green belt

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Both Microsoft and Google have announced new UK data centre projects in the last year but the laborious planning process is the cause of widespread frustration in the industry.

Once completed, large data centres typically support hundreds of construction jobs and a smaller number of permanent staff.

They are critical to high-powered AI services, which Labour is relying on to cut NHS waiting times and improve public services if it succeeds at the general election.

The Opposition has sought to focus increasingly on opportunities created by technology given spending constraints.

It is understood that Darren Jones, the shadow chief secretary to the Treasury, is working closely with Mr Kyle and Pat McFadden, the party’s national campaign coordinator, to identify areas where AI can be deployed across Whitehall.

The trio are working closely as part of a drive to improve productivity growth, particularly in health, where spending is predicted to keep growing amid an ageing population.

Sources said schemes were already being piloted in four Welsh hospitals, including the use of AI to accurately predict when patients are ready to leave.

“There really is no money left this time, so they have to take a different approach to public spending,” said one source.

Mr Kyle is expected to meet technology companies on Monday at Imperial College London in a bid to secure support ahead of London Tech Week, the annual series of events celebrating the capital’s digital sector.

The Government published a consultation in December which considered classing data centres as critical national infrastructure, although its response to calls for evidence has not been published.

TechUK, the tech industry lobby group, has called for planning laws to be overhauled to support construction, pointing out that existing rules make no mention of data centres – which are classed as storage facilities such as warehouses.

Nationally Significant Infrastructure Projects such as airports, power plants and roadworks are managed by the Planning Inspectorate, bypassing local authorities. 

On Sunday, Labour’s shadow justice secretary Shabana Mahmood told The Telegraph that prisons would be designated as nationally important projects in order to support their construction.

Even if data centres are not labelled as critically significant, Mr Kyle is believed to have told the tech industry that Labour will reform planning laws to allow more facilities.

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