From 8 January 2026, data centres are eligible to use the Nationally Significant Infrastructure Projects (NSIP) route in England and Wales. Ministers have added “data centres” to the 2013 Business or Commercial Projects Regulations, creating an opt‑in path to a Development Consent Order where the Secretary of State judges a scheme to be of national significance. ([legislation.gov.uk](Link

The change follows an October 2025 statement confirming the intent to bring major digital infrastructure into the NSIP system and to develop a dedicated National Policy Statement (NPS) for data centres. The NPS, led by the Department for Science, Innovation and Technology, will set thresholds and policy tests for decisions. ([questions-statements.parliament.uk](Link

Practically, NSIP offers a one‑stop consenting process with fixed legal timetables. Examinations are capped at six months and, for well‑prepared applications, a new fast‑track can take projects from acceptance to decision in around 12 months. That can cut years from complex local consenting, without removing environmental scrutiny. ([infrastructure.planninginspectorate.gov.uk](Link

Why it matters for sustainability is simple: power, water and land. West London’s experience shows what happens when clustered high‑load sites race ahead of network upgrades. Capacity constraints since 2022 temporarily held up housing connections in Hillingdon, Hounslow and Ealing before emergency fixes unlocked thousands of homes. ([london.gov.uk](Link

London Assembly analysis warns electricity demand from data centres in the capital could grow by more than 200% to 600% over the coming decades if build‑out continues at pace-pressure that can crowd out other priorities if not planned well. NSIP brings national oversight to those trade‑offs. ([london.gov.uk](Link

This sits alongside wider grid reforms. Ofgem and government have introduced queue‑management rules to clear ‘zombie’ projects and speed connections, with the system operator projecting large capacity releases over time. NSIP can align with these reforms, but it won’t conjure megawatts that aren’t there-credible grid plans still decide what gets built and when. ([ofgem.gov.uk](Link

Electricity use is the headline risk. The International Energy Agency says data centres are a major driver of rising demand across advanced economies through 2026, which sharpens the need for clean power procurement, on‑site generation and demand‑response. ([iea.org](Link

Water is the quiet constraint. New data from techUK and the Environment Agency indicates most English colocation sites use less than 10,000 m³ a year thanks to water‑free and closed‑loop cooling. Yet England still faces a 5‑billion‑litre‑per‑day public water shortfall by 2055 without action, so siting and technology choices remain critical. ([techuk.org](Link

Heat recovery is the missed opportunity turning into policy. In West London, the Old Oak and Park Royal project will pipe waste heat from local data centres into a new district network serving thousands of homes and businesses, backed by government funding and a long‑term delivery partnership. Building reuse into consents should become the default. ([gov.uk](Link

Environmental safeguards remain. NSIP applications still require Environmental Impact Assessment, Habitats Regulations checks and robust pre‑application consultation with regulators and communities. In Greater London, the Secretary of State may only direct a business or commercial project into NSIP with the Mayor’s consent, protecting a local voice in national decisions. ([gov.uk](Link

What should developers do now? Treat NSIP as a performance contract. Bring forward grid strategies with flexible or phased connections, firm renewable PPAs, storage and demand‑response; publish water‑use and heat‑reuse plans; and design for connection to heat networks where feasible. These steps de‑risk examination and show national benefit beyond compute.

What should councils and communities look for? Guarantees on local energy capacity, transparent water stewardship, and clear commitments to share waste heat into heat networks-plus measurable targets during operation. NSIP doesn’t remove local input; it sets a timetable for it. Early engagement still shapes outcomes.

What’s next to watch? The promised NPS will be decisive-expect parameters on load size, location, resilience and environmental performance. Until then, section 35 directions will be case‑by‑case, with national significance, grid realism and environmental outcomes carrying the most weight. ([questions-statements.parliament.uk](Link