Data centre planning: how has NSIPs changed the picture?

With an amendment to the Infrastructure Planning Regulations 2026, data centres were formally brought into the Nationally Significant Infrastructure Projects (NSIPs) regime. Recognising data centres’ importance as critical national infrastructure, this significant change means developers can opt in to the NSIPs planning process, subject to agreement from the Secretary of State.

This means, rather than going through the Town and Country Planning Act (TCPA) route, developers can seek a Development Consent Order (DCO) with approval from the Secretary of State. On first glance, choosing this streamlined route seems like the best option for all data centre developments.

However, there are still a lot of uncertainties and considerations that need to be weighed up when building a data centre planning strategy. Here’s what developers need to consider. 

What has changed with data centres’ NSIP classification? 

Prior to the NSIP classification, all data centre schemes (even major scale projects) were determined under the TCPA by LPAs. This often led to long determination periods, political pressures, and appeals or recoveries. 

Now, there is the option for data centre schemes to be determined under the Planning Act 2008 as an NSIP via DCO. This means decisions are made centrally by the Secretary of State, reducing local power to veto development. For certain projects, this can significantly improve the efficiency of the planning process. 

Developers must request a Section 35 direction for inclusion in the NSIP regime, which must also be approved by the Secretary of State.

Decisions have to be made on a case-by-case basis because there’s no definitive category or fixed threshold set in legislation. These are expected in a future National Policy Statement, but the timings and details are yet to be determined. 

When the Section 35 is submitted, the Secretary of State will decide whether the project is of national significance and meets the criteria under the Planning Act 2008. Based on this decision, the development will either remain under the TCPA or be directed into the NSIP regime. 

Is NSIP classification the only route for data centres?

The lack of defined thresholds and ability to opt in to the NSIP scheme gives developers more flexibility in their planning strategy for the time being. They can weigh up the consenting and permissions requirements alongside their programme’s needs before choosing whether NSIP or TCPA is the most advantageous path.

To gain a DCO, there is the requirement to frontload the application - carrying out pre-app engagement, surveys, assessments, producing the Environmental Statement ahead of submission. For the TCPA application, you just need to meet the LPA's minimum validation requirements, unless further information is required by the LPA to make a decision. It is more likely that the details will be ironed out during the discharge of conditions process, once consented. 

So depending on when you need your consent by, and when you actually need to achieve construction by, this can change the route you might look to take.

Advantages of the NSIPs route

If the data centre project is being determined under the TCPA, then additional consents such as highways consents, flood risk activity permits and other regulatory consents need to be obtained separately. 

In contrast, the NSIP regime means certain consents and licences can be wrapped up into a single approval, provided they fall within the order limits and legislation. The DCO also includes compulsory acquisition (CA) powers, reducing the need for separate applications and enabling a more streamlined delivery, especially if there are lots of landowners to deal with. 

NSIP examinations are also intended to follow a more predictable statutory timetable. This contrasts with TCPA applications, which can vary depending on LPA capacity and resources. NSIPs are determined against National Policy Statements rather than local policy, which can reduce local political risk, although national‑level scrutiny remains significant.

Alongside a predictable timeline, historically there has been a high percentage of DCOs approved. This can provide greater certainty for investors and developers, helping to de‑risk projects.

Drawbacks of the NSIPs route

Although there are statutory timescales for elements of the DCO process, this does not entirely remove the risk of delays. For example, once a recommendation is made by the Planning Inspectorate, it goes to the Secretary of State to determine. This period can be extended beyond the statutory three months if there are further questions the Secretary of State wishes to submit. 

The political climate can also impact timelines and make approvals uncertain. The political climate can also influence outcomes. Changes in government priorities may affect how data centres are viewed and the extent to which they are supported.  

This is exacerbated by the fact that there are no set thresholds or criteria for data centres. As a result, developers may spend additional resources looking into whether the development should be consented under the NSIP regime, and the Secretary of State may not ultimately accept the Section 35 direction. 

Additionally, the NSIP examination process is more rigorous. Applications must be highly front‑loaded, with extensive pre‑application consultation. As a result, data centres consented as NSIPs may be subject to more detailed scrutiny than under the TCPA, including assessments of strategic and cumulative impacts. 

For example, NSIPs typically require a full Environmental Impact Assessment (EIA) as part of the DCO process. This is not the case for all applications determined under the TCPA. 

Similarly, data centres are usually major electricity consumers and water consumers for the cooling down process.. Under the NSIP regime, projects must demonstrate alignment with national carbon and energy policy, leading to increased scrutiny of grid connections and energy supply.

How can developers decide if NSIP is the right route? 

For a DCO project, considerably more information is required at the beginning of the project and without that it may be necessary to follow the TCPA route. But there are advantages to NSIP status.

For example, where a project forms part of a large‑scale scheme with multiple land interests, the benefits of compulsory acquisition powers and consolidated consents can be significant. NSIPs also offer greater certainty over timescales, which can support programme planning.

However, the NSIP process requires substantial time and resources. If a data centre development is on an end-user’s site with limited land constraints and minimal additional consenting requirements, the TCPA route may be more proportionate.

We can support you to weigh up the pros and cons of each approach and develop a scheme-specific planning consenting strategy which includes the route that meets the client's best interests, taking into account their programme and budget.

The DM difference

By working on a case-by-case basis and bringing in expertise from all parts of our business, we help clients secure the right robust consents efficiently and cost-effectively. This can include DM advising on our relationship with different local planning authorities, our understanding of their capacity and resource constraints, reviewing national statistics on LPA determination performance to provide the client with an informed decision on the correct route to take. 

We also work closely with LPAs across multiple projects in different sectors, as well as key stakeholders, and can leverage these relationships, where possible, to expedite decisions. Where feasible and proportionate, we can advise our clients on the opportunities to enter into Planning Performance Agreements with LPAs securing dedicated officer resource.

Our ability to look at projects holistically due to our experience working with utilities, ie securing grid connections for data centres and understanding of differing legislation, eg Section 37 of the Electricity Act to provide informed strategic judgement is going to be a crucial part of ensuring success for your project.

With an eye on constructability, we take the most pragmatic, appropriate planning approach so clients can achieve deliverability.