UK adds data centres to section 35 planning route
Data centres are now within scope of section 35 “direction” powers under the Planning Act 2008, after ministers signed the Infrastructure Planning (Business or Commercial Projects) (Amendment) Regulations 2026. The instrument was made on 7 January and came into force on 8 January, bringing data centres into a fast‑track route used for nationally significant projects in England and Wales. The Statutory Instruments daily list confirms the 2026 No. 13 designation. ([questions-statements.parliament.uk](Link
Practically, this means developers can ask the Secretary of State to direct a qualifying scheme into the Nationally Significant Infrastructure Projects regime and seek a single Development Consent Order (DCO). A direction can only be given where the minister judges the proposal to be “of national significance”; projects in Greater London also require the Mayor’s consent. The Hansard committee debate stressed this is an opt‑in, not a blanket transfer of every data centre into NSIP. ([legislation.gov.uk](Link
The change follows the government’s decision in September 2024 to designate data centres as Critical National Infrastructure (CNI). That move signalled a policy shift to treat compute capacity as part of the UK’s essential systems alongside energy and water, with ministers trailing an upcoming National Policy Statement (NPS) to guide decisions on data centre consents. ([gov.uk](Link
For investors, the consenting risk profile moves. Section 35 offers a one‑stop process with a clear ministerial decision, which can be attractive for complex sites with generation, storage or major grid works attached. The government told Parliament an NPS for data centres-led by the Department for Science, Innovation and Technology-will set thresholds and parameters for when a scheme is likely to be considered nationally significant. That document will become the reference point applicants and Examining Authorities work to. ([hansard.parliament.uk](Link
Power remains the real bottleneck. Britain’s system operator has overhauled grid connections to clear out “zombie” projects and prioritise developments that have land rights and consents. Early results show hundreds of gigawatts ejected from the queue, with capacity ring‑fenced for high‑demand users such as data centres, and a clearer view of how much firm demand can connect this decade. Expect the viability of any campus to hinge on its place in the new queue. ([reuters.com](Link
Pipeline signals are strong. Equinix has outlined a £3.9bn campus in Hertfordshire-one of the UK’s largest single commitments-while councils around West London have been dealing with multiple large applications. Fast‑track consenting will not magic away local design, transport or noise issues, but for schemes with strategic power and fibre, the decision now sits squarely with central government. ([constructionenquirer.com](Link
Listed landlords already positioned for this shift could see clearer execution paths. SEGRO has assembled a land‑enabled power bank it says could support c.2.3GW of data centre capacity and has signalled a move from “powered shell” to fully fitted facilities for hyperscalers-potentially lifting rental income but increasing capex and asset‑specific risk. ([segro.com](Link
Specialist exposure is also building beyond logistics REITs. Tritax Big Box has secured a 74‑acre West London site within the Slough availability zone, targeting up to 147MW at full build‑out on a powered‑shell basis, with phase one slated to start construction-planning permitting-in the first half of 2026. Section 35 removes one planning route variable; grid and delivery capability remain decisive. ([datacenterdynamics.com](Link
For developers and lenders, the immediate to‑do list is straightforward: benchmark whether a direction helps more than a local application, secure grid capacity early under the reformed NESO process, assemble environmental information to NSIP standards, and track DSIT’s draft NPS. Remember that London schemes will need the Mayor’s consent for any section 35 direction. ([legislation.gov.uk](Link
What to watch next: the consultation timetable for the data centres NPS; how many promoters actually seek directions in Q1–Q2; and whether the connections reform translates into earlier energisation dates for demand users. If those pieces move together, land with proximate high‑voltage capacity and dark‑fibre routes should continue to command a premium-and listed owners with prepared power banks will be first in line. ([hansard.parliament.uk](Link