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The UK government has introduced a faster approval pathway for major data center projects, allowing qualifying developments to bypass parts of the local planning process and seek approval directly from the national government. Officials say the change could accelerate construction by up to a year while reducing costs for developers.

The new policy applies to projects classified as Nationally Significant Infrastructure Projects (NSIPs), a designation previously reserved for critical infrastructure such as power plants and railways. Data centers were added to the list earlier this year, but developers must apply for the status rather than receiving it automatically. The streamlined process could save developers up to £1 billion, about $1.3 billion, in planning and consultation costs.

Legal experts say data centers will not automatically qualify as NSIPs. Womble Bond Dickinson noted that developers must demonstrate national significance and satisfy the legal requirements outlined in Section 35 of the Planning Act 2008 before the Secretary of State can approve the designation. However, the government has not yet published detailed criteria explaining which projects will meet the threshold.

The Ministry of Housing, Communities and Local Government said the revised process will also provide technical guidance from the Planning Inspectorate before applications are submitted, helping developers prepare stronger proposals and reduce delays.

The move comes as demand for AI infrastructure continues to surge, increasing pressure to build new data centers more quickly. Three projects have already benefited from NSIP classification, while more than 80 developments have sought pre-application support from the Planning Inspectorate.

The policy also reflects growing concerns over local opposition to data center construction. Across the United States, resistance from nearby communities has delayed dozens of projects and contributed to billions of dollars in stalled investments. By centralizing approvals for nationally significant developments, the UK hopes to avoid similar planning bottlenecks while expanding its digital infrastructure.

The government is expected to publish a National Policy Statement later this year to clarify how future data center projects will qualify for NSIP status and ensure the new process is applied consistently.