The need for more data centres is growing by the day. Artificial intelligence (AI), cloud computing, streaming, financial services and even the humble email all rely on the secure, instantaneous processing of vast quantities of data – and demand shows no signs of slowing.

Jane Crichton

In 2024 alone, the UK added over 150 megawatts (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 afterthought. These facilities are critical infrastructure and must be treated as such.

It is not only the volume of data that is increasing but the type, too. AI workloads are far more data-intensive than traditional cloud services. Training a large language model such as ChatGPT or a next-gen image generator requires immense processing power. This requires not only more servers but new kinds of data centres: bigger, denser, hotter and more energy-hungry than their predecessors.

More than 95% of the electricity consumed by a data centre eventually turns into heat

Globally, data centres are estimated to consume around 2% to 3% of total electricity use. In Ireland (home to the European HQs of Google, Facebook and Amazon), they already account for over 20% of electricity demand. In the UK, that figure is lower but rising. Each facility can use the same amount of electricity as 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 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.

Hot sector: most of the substantial heat generated by data centres is currently wasted
Shutterstock / Gaultiero Boffi

But this 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 an east London public swimming pool. These may seem like quirky footnotes, but they point to something bigger: a more sustainable data economy.

Strategic sites

The property sector can play a key role in achieving this. First, the planning system can contribute through the strategic location of data centres. There is substantial potential to be gained through the use of renewable energy, for example the co-location with renewable generation or battery storage. Co-siting data centres with solar farms, wind turbines or hydroelectric plants can improve efficiency and cut 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 about not just energy consumption but also material, spatial and social impact.

The National Planning Policy Framework is largely silent on data infrastructure, while 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? Such towns could be a modern-day Bournville – the Birmingham garden village established in the 19th century to provide a better quality of life for Cadbury’s factory workers – with homes, community facilities and energy-intensive digital infrastructure co-located to share heat, power and skills.

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.

Jane Crichton is associate planning director at Lanpro