Questions Before ConcreteData centres in England and Wales
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In depth · How decisions are made

Who decides, and when?

England and Wales are taking different routes. England is moving the biggest schemes towards central government; Wales relies on general policy and on ministers choosing when to step in.

England now has a draft policy for data centres. Wales does not.

In October 2026 the UK Government published a draft National Policy Statement for data centres. It applies to England only. It treats data centres of 100 MW or more of computing load as likely to be nationally significant, starts from a presumption that they should be approved if they meet its requirements, and expects them to agree a Local Benefit Plan with the community, minimise water use, publish their energy and water use every year, meet an energy-efficiency standard, and explain why waste heat will not be reused if it is not. Parliament’s scrutiny period runs to 17 February 2027.

Comments close at 11:59pm on 8 January 2027. See our guide to the draft and how to respond.

The draft itself says that planning is devolved and that it does not apply to applications in Wales. Our reading: if it is adopted, the largest data centres in England will be expected to publish their energy and water use every year, while comparable proposals in Wales will not, because no Welsh policy asks for it.

Questions to ask

Ask: the Welsh Government

“Will the Welsh Government publish a data-centre policy statement setting out how proposals will be assessed, how conflicts between its roles as landowner, promoter and regulator will be managed, and how host communities can expect to benefit?”

Follow-up: Not yet asked, so far as we know.

Ask: the Welsh Government Cabinet Minister for Enterprise, Connectivity and Energy (copy: Cabinet Secretary responsible for planning)

“The UK Government’s draft National Policy Statement for data centres would require large data centres in England to publish their annual energy and water use, agree a Local Benefit Plan and explain why waste heat will not be reused. Will the Welsh Government apply equivalent requirements to data-centre proposals in Wales, and if so, how and when?”

Follow-up: Not yet asked, so far as we know.

What a responsible developer should commit to, before design is fixed

  1. Engage the community before the site is chosen, not after.
  2. Publish any Environmental Impact Assessment screening request and opinion, and accept a full assessment for large schemes.
  3. Where public land is involved, publish the principal lease terms.
  4. Agree published host-community benefits before consent.

From the paper “Beyond Planning Permission”

The full text of the relevant sections of the paper, with its own numbered notes. Note numbers match the paper.

2. Planning Policy in England and Wales

England

Planning policy in England has become increasingly supportive of data-centre development. Recent national planning reforms have recognised the importance of digital infrastructure and encouraged local authorities to consider provision for future data-centre requirements.15

Supporters argue that these reforms are necessary if the United Kingdom is to remain competitive in artificial intelligence, cloud computing and advanced digital services.16,17

Critics argue that national policy support should not diminish scrutiny of environmental and local impacts.

Both perspectives have merit.

Wales

Wales has taken a somewhat different approach to date.

Data-centre proposals are primarily considered through Planning Policy Wales, Future Wales, Technical Advice Notes and wider sustainable-development objectives rather than through a dedicated data-centre policy framework.18

Recent Welsh policy developments have sought to streamline infrastructure decision-making while maintaining emphasis upon sustainable development, community benefit and place-making.19,20

The distinction between England and Wales should not be overstated. Both administrations recognise the importance of digital infrastructure. The principal difference lies in policy emphasis and institutional context rather than strategic direction.21,22

That said, a critical appraisal should not understate the practical consequences of the different approaches taken. In England, the classification of data infrastructure as Critical National Infrastructure, reform of the National Planning Policy Framework and the extension of the Nationally Significant Infrastructure Projects regime have together tended to move decision-making on the largest data-centre schemes toward central government, narrowing the discretion available to local planning authorities.23

Wales has adopted no equivalent dedicated framework. Data-centre proposals continue to be determined under general sustainable-development and place-making policy, with the Welsh Government's principal lever being its Ministerial power to issue a holding directive or call in an individual application - as it did in August 2026 in respect of a proposed data centre at a Cardiff park-and-ride site, pending a decision on whether to determine the application itself.24

Each approach carries trade-offs.

England's more centralised model offers greater consistency and speed for developers but reduces the scope for local scrutiny of individual schemes.

Wales's more general, policy-led approach preserves local decision-making and flexibility but risks unpredictability, since outcomes may turn on whether Ministers choose to intervene in a particular case rather than on a published, generally applicable framework.

Industry commentators have specifically identified the absence of a dedicated Welsh data-centre strategy as an outstanding gap, notwithstanding Wales's evident ambitions in this sector.25,26 A clearer, published Welsh Government policy statement - setting out how proposals will be assessed, how any conflict between the Welsh Government's roles as landowner, promoter and regulator will be managed, and how host communities can expect to benefit - would reduce this unpredictability without requiring wholesale adoption of the English model.

Notes from the paper

  1. 15. Browne Jacobson, NPPF 2026 Amendments: Data Centres and On-Site Energy Generation (2026), summarising National Planning Policy Framework reforms concerning data-centre and AI infrastructure planning (2024–2026). https://www.brownejacobson.com/insights/nppf-2026-amendments-browne-jacobson-response/data-centres-and-on-site-energy-generation
  2. 16. House of Commons Library, Data Centres: Planning Policy, Sustainability and Resilience, Research Briefing CBP-10315 (27 May 2026). https://commonslibrary.parliament.uk/research-briefings/cbp-10315/
  3. 17. Browne Jacobson, NPPF 2026 Amendments: Data Centres and On-Site Energy Generation (2026), summarising National Planning Policy Framework reforms concerning data-centre and AI infrastructure planning (2024–2026). https://www.brownejacobson.com/insights/nppf-2026-amendments-browne-jacobson-response/data-centres-and-on-site-energy-generation
  4. 18. Welsh Government, Planning Policy Wales (Edition 12, updated July 2024). https://www.gov.wales/planning-policy-wales
  5. 19. Ibid.
  6. 20. Senedd Research, Data Centres in Wales: How Will Wales Manage a Rapidly Growing Industry? (July 2026). https://research.senedd.wales/research-articles/data-centres-in-wales-how-will-wales-manage-a-rapidly-growing-industry/
  7. 21. Welsh Government, Planning Policy Wales (Edition 12, updated July 2024). https://www.gov.wales/planning-policy-wales
  8. 22. Senedd Research, Data Centres in Wales: How Will Wales Manage a Rapidly Growing Industry? (July 2026). https://research.senedd.wales/research-articles/data-centres-in-wales-how-will-wales-manage-a-rapidly-growing-industry/
  9. 23. Browne Jacobson, NPPF 2026 Amendments: Data Centres and On-Site Energy Generation (2026), summarising National Planning Policy Framework reforms concerning data-centre and AI infrastructure planning (2024–2026). https://www.brownejacobson.com/insights/nppf-2026-amendments-browne-jacobson-response/data-centres-and-on-site-energy-generation
  10. 24. Britbrief, Welsh Government Could Decide Cardiff Data Centre Plans After Holding Directive (August 2026). https://britbrief.co.uk/business/property/welsh-government-may-decide-cardiff-data-centre-plans.html
  11. 25. Business News Wales, The Rise of Data Centres in Wales (2026). https://businessnewswales.com/the-rise-of-data-centres-in-wales/
  12. 26. DataCenterDynamics, Silicon Valleys: How Wales Aims to Become a Data Center Hub (analysis, 2026). https://www.datacenterdynamics.com/en/analysis/silicon-valleys-how-wales-became-a-data-center-hub/