Data centres are now on England’s nationally significant infrastructure planning (NSIP) route. A statutory instrument signed on 7 January 2026 adds “data centres” to the list of business or commercial projects eligible for a Section 35 direction, bringing qualifying schemes into the Development Consent Order (DCO) process from 8 January 2026. The instrument extends to England and Wales. ([legislation.gov.uk](Link

Practically, this means the Secretary of State can, on request, treat a data centre as nationally significant and determine it through the NSIP regime rather than local planning. The direction can only be given if the project is considered of national significance and, for sites in Greater London, with the Mayor’s consent. The underlying legal test and process are set out in section 35 of the Planning Act 2008 and government guidance on NSIP pre‑application. ([legislation.gov.uk](Link

NSIP decisions sit alongside environmental safeguards. Where a data centre is EIA development, the Infrastructure Planning (Environmental Impact Assessment) Regulations 2017 require an environmental statement, public consultation and a reasoned conclusion by the Secretary of State before consent is granted. Expect air quality, embodied carbon, energy use, water demand, heat rejection and nature impacts to be assessed in the round. ([legislation.gov.uk](Link

The timing is not accidental. Electricity demand from data centres is rising and will keep rising through 2026, according to the International Energy Agency’s latest electricity outlook. In parallel, Britain’s new National Energy System Operator has begun clearing connection backlogs and prioritising viable projects, with a specific allocation for high‑demand users such as data centres-important context for site promoters considering the NSIP route. ([iea.org](Link

Water use will be scrutinised just as closely. England faces a projected shortfall of 5 billion litres per day in public water supply by 2055, the Environment Agency warns. Any proposal abstracting more than 20 cubic metres per day typically needs a licence, and applicants must show availability in the catchment. Developers will need robust water strategies-including alternatives to evaporative cooling-given rising stress in southern and eastern regions. ([gov.uk](Link

Industry data suggests many UK facilities already use little or no mains water for cooling. A 2025 techUK study with the Environment Agency reported that 64% of surveyed English data centres used under 10,000 m³ per year and 51% ran waterless systems. NSIP examinations can lock these efficiencies in via consent requirements, providing transparency where public reporting is patchy. ([techuk.org](Link

Heat reuse is the missed opportunity that NSIPs can help mainstream. In West London, the Old Oak and Park Royal Development Corporation has secured £36 million from the Green Heat Network Fund to capture low‑grade heat from local data centres and supply thousands of homes and a major hospital, with delivery phases running from 2026. Using DCO requirements to mandate heat export and on‑site plant compatibility would turn waste heat into a public asset. ([london.gov.uk](Link

Policy is moving in the same direction. Government pilots for heat network zoning identify areas where district heat is the lowest‑cost decarbonisation option, and future zoning powers are expected to encourage connection to networks. Data centres are named as prime waste‑heat sources-so NSIP promoters who design for heat export from day one will be aligned with the next wave of local energy planning. ([gov.uk](Link

Biodiversity will be part of the file too. Mandatory biodiversity net gain (BNG) already applies to most Town and Country Planning Act permissions. For NSIPs, Defra has proposed a start date of May 2026; projects coming through the new data‑centre NSIP route should budget time and land for measurable habitat uplift. ([gov.uk](Link

What the change signals is clear: Whitehall wants nationally significant digital infrastructure decided with national‑level scrutiny and obligations. For developers, that points to early EIA scoping, a credible grid plan, water‑light cooling, heat‑export readiness and nature‑positive design. For communities, it offers a single consent process with clearer conditions on energy, water and local benefits. That’s the bargain this reform is designed to strike. ([legislation.gov.uk](Link