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Hoare Lea’s Societal Insights team analysed 33 disputed applications to understand the underlying reasons for rejection and delay. Rejections frequently cited policy non-compliance, unsuitable locations and insufficient energy strategies.
These findings identify the tension between the growing demand for data centres in the UK, that are supported by the government’s AI Growth Zones, and the realities of navigating the planning system.
Carl Walker, Head of Societal Insights at Hoare Lea said: “Success will be judged not only by new infrastructure, but also by the skills, growth and opportunities delivered to local communities, who’s needed must be recognised in the planning process.”
Ambitions to build data centres in the UK already face significant challenges. Electricity grid capacity is already under strain, particularly in London and the M4 corridor, where data centres have delayed housing developments. Concerns also exist around environmental impacts, green belt land, and controversial government interventions overriding local planning decisions.
The report findings underscore the need for integrated approaches that combine renewable energy planning, transparent governance and meaningful community dividends. By engaging communities early, supporting local skills and infrastructure, and embedding social and environmental value, data centres can become catalysts for sustainable local growth rather than sources of conflict.
