From 8 January 2026, data centres in England and Wales can opt into the Nationally Significant Infrastructure Projects route to seek a Development Consent Order. The change, made on 7 January and now in force, adds “data centres” to the list of business or commercial projects that can be directed into the regime under section 35 of the Planning Act 2008. Projects still need a ministerial direction confirming national significance before they switch tracks. ([statutoryinstruments.parliament.uk](Link

This is not a blanket move for every server hall. Ministers stressed during parliamentary scrutiny that opting into NSIP is voluntary and only possible where the Secretary of State considers a proposal nationally significant. The Department for Science, Innovation and Technology is preparing a new National Policy Statement for data centres to guide those decisions. In Greater London, any section 35 direction for a business or commercial scheme also needs the Mayor’s consent. ([hansard.parliament.uk](Link

Why it matters now: power and planning capacity. Analysts expect Europe’s data centre electricity demand to almost double by 2030, with the UK among the leading markets. The UK system operator has also begun overhauling grid connections, moving towards a “first ready, first connected” approach and earmarking capacity for high‑demand sectors, including data centres. A single consenting route could save time-provided projects arrive with credible energy strategies. ([spglobal.com](Link

Water is the other pressure point. The Environment Agency warns England faces a 5 billion‑litre‑a‑day public water shortfall by 2055, plus 1 billion litres for the wider economy, without rapid efficiency gains and new supply. In 2024–25 the regulator also noted rising constraints on new non‑domestic connections in parts of the east of England, urging businesses to cut consumption. Any large data centre routed through NSIP will face close scrutiny on water sources, metering and drought resilience. ([gov.uk](Link

The sector can point to progress. An industry survey produced with the Environment Agency found that 64% of English sites used under 10,000 m³ of water a year and 51% operated waterless cooling-evidence that design choices can keep drawdown low. But the growth of high‑density AI workloads and regional drought risk mean transparent reporting and location‑specific safeguards will matter more, not less. ([datacenterdynamics.com](Link

Heat shouldn’t be wasted. The European Commission’s data centre sustainability scheme highlights heat reuse as a key performance indicator, and projects from Helsinki to Paris are already piping residual heat into district networks at scale. In the UK, the University of Edinburgh will recycle heat from a campus data centre into local buildings-an early sign that British schemes can do the same when planned in from day one. ([energy.ec.europa.eu](Link

Environmental assessment remains robust under NSIP. Projects must prepare an Environmental Statement scoped with the Planning Inspectorate, address cumulative impacts, and clear Habitats Regulations where relevant. The Environment Agency and Natural England set expectations early in the pre‑application stage-so proposals that bank on best‑available cooling, non‑potable water options and heat export will be better placed through examination. ([gov.uk](Link

Nature recovery is coming into scope too. Mandatory Biodiversity Net Gain for NSIPs is slated to start from May 2026, following government consultation and guidance updates last year. Even before commencement, promoters are being encouraged to design in measurable uplifts and secure delivery for at least 30 years-work that is simpler if land, red lines and habitats are considered early. ([gov.uk](Link

There are credible routes to cut grid stress. Research shows data centres can provide demand flexibility by shifting non‑urgent workloads, using on‑site storage and optimising cooling. Pairing these measures with clean power procurement and, where feasible, on‑site generation improves the case for timely grid offers and aligns with the system operator’s connection reforms. ([arxiv.org](Link

What to watch next: DSIT’s draft National Policy Statement will set the tests for “national significance”-including scale, co‑location with energy infrastructure and potential for heat reuse-giving developers and communities a clearer playbook. Until then, the direction is set: faster decisions are on the table, but only for schemes that show they will run on clean power, respect scarce water and put excess heat to work. ([hansard.parliament.uk](Link