Data centres formally brought into the NSIP regime: what developers need to know
Members of the Forsters’ data centre team, Alex Greenwood (Commercial Real Estate) and Sophie Smith (Planning), examine the recent changes to the NSIP regime and their impact on the future consenting landscape for data centres in the UK.
The Government has now taken decisive steps to bring data centres within the Nationally Significant Infrastructure Projects (NSIP) consenting regime. New regulations amending the Infrastructure Planning (Business or Commercial Projects) Regulations 2013 have been laid before Parliament to prescribe data centres as eligible for consideration as NSIPs.
Previously, applications for data centres could only be submitted to local planning authorities under the Town and Country Planning Act 1990 regime. The changes give developers of large scale data centre projects the option to request that their schemes be treated as business or commercial projects pursuant to the NSIP framework. If approved, applications are determined through the Development Consent Order (DCO) process by the Secretary of State rather than by local planning authorities.
Background to the regulatory change
Prior to these regulations, even the largest hyperscale data centres were considered under the Town and Country Planning Act 1990, often leading to prolonged determination periods and more recently multiple high-profile recovered appeals subsequently granted by the Secretary of State where originally refused at the local decision making level.
In 2024, the Government confirmed its intention to bring data centres into the NSIP regime as part of wider reforms aimed at supporting digital infrastructure and the growth of AI.
On 8 January 2026, the Infrastructure Planning (Business or Commercial Projects) (Amendment) Regulations 2026 were made, formally enabling nationally significant data centre projects to opt into the NSIP route by requesting a section 35 direction pursuant to the Planning Act 2008.
The new regime for data centres
Under the amended Regulations, data centre developers may request that their project be considered “nationally significant” so that it can be determined through the DCO process. Where a section 35 direction is successfully granted by the Secretary of State, an application for a DCO will need to then be submitted in order to obtain the consent to bring the data centre project forward.
Developers are likely to benefit from the NSIP route’s greater predictability and its consolidated consenting process.
What does this mean for developers
While the NSIP regime offers a streamlined route for the largest and most complex projects, uncertainties remain pending publication of the NPS. Developers should carefully assess whether NSIP status is advantageous for their schemes and consider early engagement with the Department for Science, Innovation and Technology.
Putting on our sustainability hats for a moment, the introduction of data centres into the NSIP regime brings new considerations in relation to biodiversity net gain, now a key component of planning considerations for large scale developments. A discussion for another time.
What we do not know
The regulations do not set out any size, capacity or operational thresholds that would automatically qualify a data centre to elect the NSIP route to consent.
Instead, the decision is left to the Secretary of State, who must be satisfied that the project is “nationally significant”.
A National Policy Statement (NPS) for data centres, however, is being prepared. This will, hopefully, set out:
- the parameters and thresholds relevant to assessing whether a data centre is nationally significant;
- the policy framework guiding the Secretary of State’s decision making; and
- other relevant factors that may indicate national significance.
A consultation was expected in February 2026 on a draft NPS but at the time of publication, the consultation has not yet been launched.
Final thoughts
The inclusion of data centres within the NSIP regime marks a significant shift in the UK planning landscape for digital infrastructure. The intention is to offer developers a more structured and nationally focused consenting route, reflecting the growing strategic importance of data centre capacity to the UK economy and the expansion of AI related activity.
However, the absence of a finalised NPS and associated guidance means that key uncertainties remain.
As the policy landscape evolves, staying ahead of regulatory developments will be critical.
Data centres
We understand the drivers underpinning the success of data centre projects
Find out more
