Iceni’s multi-disciplinary expertise provides in-depth knowledge of the sector, enabling us to support investment decisions, provide robust pre-development planning due diligence and de-risk the planning application process.
Data Centres – The newest form of Critical National Infrastructure
12 Nov 24
September 12th saw the Government announce data centres as Critical National Infrastructure (CNI), joining the likes of the emergency services, health care systems, water and energy supplies. The status recognises that the loss or compromise of this infrastructure would lead to major detrimental impact on the availability, integrity or delivery of essential services or a significant impact on national security, national defence, or the functioning of the state.
The awarding of CNI status to data centres, underpinned by significant private sector and government investment, shows their importance to the Labour Government. Twinned with the draft NPPF referencing that planning decisions should recognise data centres’ locational requirements, there is clear and positive support from the Government to drive their future growth.
The need for data centres is growing, in no small part due to the rapid increase in AI based services. Amazon Web Services recently announced an £8bn investment in building and operating new centres in Britain over the next five years, while Microsoft and Google are separately building their first UK premises.
Despite the national drive for data centre development, environmental concerns remain – not least in the demand such centres place on energy resources and the large quantities of water required for cooling.
Traditionally clustered in the South of England and aligned to ‘cloud availability zones’ [clusters of multiple data centres that support each other should one fail], operators and investors are now looking further afield, including in areas with access to renewable energy sources. With sustainability becoming increasingly important, new schemes are beginning to incorporate on-site energy generation through solar panels, wind turbines and nuclear power – requiring a combination of different land and weather conditions. The grid mix and a high percentage of renewable energy in the overall supply is now taking on increasing levels of importance and driving locational decision-making.
Manchester, with its good connectivity and growing tech scene, is coming into focus as an attractive location for data centres. Other key emerging locations include Newcastle, with its access to renewable energy sources (particularly off shore wind), Scotland and its abundance of renewable energy (particularly wind power), and Wales which offers broad access to renewable energy sources including tidal and wind power. All these areas also offer a cooler climate, making heat management easier.
Ultimately, the combination of strong government support, favourable market conditions, technological advancements, attractive investment opportunities, and the growing demand from data centres and AI, presents an ideal time to invest in the sector.
Iceni’s multi-disciplinary expertise provides in-depth knowledge of the sector, enabling us to support investment decisions, provide robust pre-development planning due diligence and de-risk the planning application process. We are currently instructed on numerous data centre developments across the country, using our Engagement, Heritage, Planning, Design and Economics capabilities.