Demand for data centres shows no signs of slowing and Jane Crichton of Lanpro suggests, with the right planning, they could be used to heat UK homes.
The need for more data centres is growing by the day. AI, cloud computing, streaming, financial services and even the humble email rely on the secure, instantaneous processing of vast quantities of data.
In 2024 alone, the UK added over 150 MW of new data centre capacity, with London now the largest co-location market in Europe. But the rise of generative AI and real-time services is pushing existing infrastructure to its limits. We are entering a new era of digital reliance, with physical implications that can no longer be an after-thought.
It’s not just the volume of data that’s increasing, but the type. AI workloads are far more data-intensive than traditional cloud services. Training a large language model like ChatGPT or a next-gen image generator requires immense processing power, and that requires not just more servers, but new kinds of data centres – bigger, denser, hotter and more energy-hungry than their predecessors.
Globally, data centres are estimated to consume around 2-3% of total electricity use. In Ireland (home to the european HQs of Google, Facebook and Amazon), they already account for over 18% of electricity demand. In the UK, that figure is lower, but rising. Each facility can use the equivalent of tens of thousands of homes. And with AI ramping up, power requirements are doubling faster than renewable capacity can keep up.
Data centres also produce substantial heat: more than 95% of the electricity consumed by a data centre eventually turns into heat. This energy is often dissipated into the atmosphere through mechanical cooling systems – wasting a potentially valuable resource while also requiring further energy. That may be changing. In Scandinavia, data centre heat is increasingly used to warm homes and civic buildings through district heating networks. In the UK, a Microsoft data centre will soon help heat a public swimming pool in East London. These may seem like quirky footnotes, but they point to something bigger: a more sustainable data economy.
Clearly the property sector plays a key role in achieving this. Firstly, the planning system can contribute through the strategic location of data centres. There is substantial potential to be gained through use of renewable energy – for example, the colocation with renewable generation or battery storage. Co-siting data centres next to solar farms, wind turbines or hydroelectric plants can improve efficiency and reduce reliance on the grid. Another is energy cascading – using waste heat to support nearby homes, schools, or businesses. Both require early, joined-up planning.
There are also the issues of water use, embodied carbon in construction and end-of-life design for high-turnover server hardware. Sustainability is not just about energy consumption, but material, spatial and social impact.
The National Planning Policy Framework (NPPF) is largely silent on data infrastructure, and references in local plans vary wildly. All too often, data centres are classed as sui generis, industrial or employment uses, which means they can fall through the cracks or get caught in unsuitable policy constraints.
We need a more consistent, strategic approach. Just as power stations, rail and energy schemes are integral parts of our national infrastructure, this must also apply to data centres. This would address the need for a more strategic approach to land allocation, visual impact, connectivity, grid availability, and the potential for mixed-use synergies.
Could there be scope to embed data centres in new towns – places planned holistically around the mutual benefits of residential and industrial uses? A modern-day Bournville, where homes, community facilities and energy-intensive digital infrastructure are co-located to share heat, power and skills?
Ultimately, planners, developers and policymakers should see data centres not just as a challenge to be mitigated, but as a lever for transformation. With the right frameworks in place, data centres can act as anchors for sustainable energy networks, skills ecosystems and regional growth.
This article was written by Jane Crichton, associate planning director at Lanpro.
Images: Joshua Sortino via UnSplash and Jane Crichton
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