Planning activity for new data centres in England and Wales hit a record high in 2025, with applications rising 63 percent compared with 2024. That spike reflects intensifying demand for computing capacity driven by cloud services and artificial intelligence (AI) workloads.

According to analysis cited by Data Centre Review, more than 60 new planning applications for data centres were lodged in local planning systems last year. The figure excludes extensions to existing facilities and mixed-use developments that include data centre components, meaning the actual volume of data-related proposals moving through planning could be even higher.

What’s Driving the Surge

Several factors are fuelling this acceleration in planning demand:

• AI and cloud compute growth: Major technology companies are investing heavily in infrastructure to support AI, machine learning and cloud services. Hyperscale providers such as Google, Microsoft and OpenAI are expanding their global footprints, and the UK has emerged as a key strategic market.
• Competition for land and power assets: Developers are increasingly targeting non-traditional sites, from former hotels and industrial land to brownfield locations that offer proximity to power and connectivity.
• Geographic spread: While London and the South East remain hotspots, applications have broadened into the Midlands, North West, Yorkshire and Wales, driven by land, cost and grid considerations.

Beyond the Numbers

This planning surge takes place amid wider industry dynamics:

• The UK data centre market has been designated a Critical National Infrastructure, with government support for new facilities and initiatives to streamline connections to power grids.
• Despite strong interest, power availability and grid constraints are emerging as a key bottleneck for developers, prompting innovation in energy solutions and planning approaches.
• The broader global outlook remains one of rapid expansion, with industry forecasts predicting continued capacity growth through to 2030 as AI and cloud demand escalates.

What This Means for the UK Industry

The record-setting planning figures highlight several important trends:

1. Growing confidence in digital infrastructure investment. Investors and developers are clearly bullish on future demand, submitting ambitious proposals even in competitive planning environments.
2. Increased pressure on planning systems. Local authorities may face rising workloads and challenges in balancing development interests with community and environmental concerns.
3. A shift in where data centres are being proposed. With costs and capacity constraints rising in traditional hubs, new regions are coming into focus for developers looking to secure sites with available power and space.
4. Policy and infrastructure will matter more than ever. Grid capacity, streamlined approvals and supportive local policy will be crucial to turn planning applications into operational facilities.