Government Forced into U-Turn Over Buckinghamshire AI Datacentre Approval
The government has been compelled to admit that its own planning approval for a major artificial intelligence datacentre should be quashed, following a failure to fully consider the climate impact of the development. Campaigners have hailed this reversal as an embarrassing climbdown during an ongoing legal challenge against the proposed centre.
Planning Approval Overturned After Environmental Oversight
Former deputy prime minister Angela Rayner had originally overruled local council opposition to grant permission for the hyperscale datacentre on greenbelt land adjacent to the M25 in Buckinghamshire. This decision aligned with Labour's commitment to accelerate private investment in AI infrastructure. However, her successor, Steve Reed, has now conceded that the reasons provided for not requiring a comprehensive environmental impact assessment were inadequate and that permission should indeed be quashed.
During this week's legal proceedings, the government acknowledged making a serious logical error in its approval process. The scheme, also promoted as the West London Technology Park, had been touted by its developers as potentially attracting £1 billion in foreign direct investment. This U-turn follows sustained pressure from environmental campaigners who argued the approval was unlawful due to insufficient scrutiny of carbon emissions and water usage associated with energy-intensive datacentres.
Campaigners Celebrate Environmental Victory
Environmental groups accused the government of being overly accepting of developer assurances regarding environmental impact while failing to properly evaluate energy consumption implications. Rosa Curling, co-executive director of tech equity organisation Foxglove, stated: "It shouldn't take us having to drag the government to court for them to admit their decision to back big tech's polluting datacentres was fundamentally wrong."
Curling further criticised what she described as ministers prioritising "the profits of Trump-supporting tech billionaires ahead of the interests of the British public" and showing willingness to "force through massive datacentres against the wishes of the local community, without a thought for the catastrophic damage they will cause to our environment."
Broader Implications for UK Infrastructure Strategy
This case represents a significant blow to the government's strategy of accelerating datacentre construction to attract investment from technology companies. In September 2024, the government designated datacentres – which train and operate AI systems – as critical national infrastructure, highlighting their perceived importance to the British economy. Former technology secretary Peter Kyle had previously described them as "the engines of modern life, they power the digital economy and keep our most personal information safe."
The proposed 72,000 square metre (18-acre) datacentre on a former landfill site in Iver is being developed by Greystoke, who declined to comment on the recent developments. Sonja Graham, chief executive of environmental charity Global Action Plan which participated in the legal challenge, remarked: "This embarrassing climbdown could have been avoided had the government done its job and scrutinised big tech's flimsy carbon commitments in the first place."
Graham added: "People across the UK are increasingly concerned about datacentres' proliferation and what it means for access to water and power. The government being asleep at the wheel like this will do nothing to reassure them."
Government Confirms Concession to Court
The Ministry of Housing, Communities and Local Government confirmed that on Monday, the government informed the court that the secretary of state wished to concede the challenge and accepted that permission should be quashed. This development occurs against a backdrop of growing datacentre capacity in the UK, which stood at approximately 1.6 gigawatts in 2024 with forecasts suggesting this could increase up to fourfold by 2030.
Despite this projected growth, government analysis indicates it may still prove insufficient to meet future demand. Last year, Kyle had criticised "archaic planning processes" that he claimed were hindering technology infrastructure development, specifically noting: "The datacentres we need to power our digital economy get blocked because they ruin the view from the M25."
The current reversal highlights the ongoing tension between rapid technological infrastructure development and thorough environmental scrutiny within the UK's planning system.
