29 July 2025

As Artificial Intelligence (AI) continues to reshape global industries, the demand for robust digital infrastructure is surging. At the heart of this transformation are data centres, now fundamental to the AI-driven digital revolution.

 

 

To find out more about this, we caught up with our environmental expert, Ellen Smith and water lead, Rob Forsyth, to get their insights into the environmental considerations surrounding data centres and their impact on natural resources.

Striking a balance between development and environmental issues

To speed up planning for AI infrastructure, the UK Government has dedicated AI Growth Zones as part of its ‘AI Opportunities Action Plan’, a broader strategy to position the UK as a global leader in AI technology. Culham in Oxfordshire has been designated as the first AI Growth Zone. The Culham Science Centre, home to the UK Atomic Energy Authority, was selected due to its existing energy capacity and available land, making it suitable for large-scale AI data centres.

However, AI data centres are known for their high water and energy consumption, potentially exacerbating existing environmental challenges. The proximity of this AI Growth Zone to the planned Abingdon reservoir, intended to address water shortages in the southeast of England, has sparked local concerns about flood risk and ecological habitats.

Balancing development with environmental harm has been highlighted in a recent approval on appeal for the Court Lane hyperscale data centre in Iver, Buckinghamshire, located within a green belt area. This case sets a precedent for balancing environmental constraints with the strategic necessity of data centre development.

Key factors in the approval included:

  • Economic and Operational Benefits: The data centre promises job creation, both skilled and downstream, and the re-use of previously developed land.
  • Environmental Mitigation: The development reduces heavy goods vehicle (HGV) movements.
  • National Importance: The need for data centre infrastructure outweighed the harm to the green belt and the setting of a listed building.

The decision underscores the growing importance of data centres as critical infrastructure while highlighting the environmental trade-offs.

Spring Park Data Centre - Server Rack

Revised planning framework and policy updates

To remove planning barriers to new data centres, the revised National Planning Policy Framework (NPPF), published in December 2024, now explicitly references data centres, reflecting their strategic importance. Key updates include:

  • Paragraph 86c: Planning policies should identify suitable locations for data centres, alongside other infrastructure such as laboratories and gigafactories.
  • Paragraph 87: Stresses the need for new, expanded, or upgraded facilities to support data centre growth.
  • Footnote 7: Greenbelt and AONB (Areas of Outstanding Natural Beauty) locations are no longer automatic grounds for refusal but require “strong reasons” for restriction.
  • Paragraphs 146 and 155: Allow altering green belt boundaries or utilising “grey belt” land under exceptional circumstances to meet development needs.

 

These updates emphasise the need for local planning authorities (LPAs) to work collaboratively with data centre developers to identify strategic sites and update local plans accordingly.

Environmental considerations in data centre development

While data centres are critical for the digital economy, their environmental impact cannot be ignored:

  • Water Resources: Many data centres rely on significant amounts of potable water for cooling, which could strain local water supply networks, particularly during droughts. Waterman’s team has experience in the design of schemes where water is not used for evaporative cooling, eliminating the need for consumption of potable water for cooling. We have also been embracing and implementing the latest AI technology, smart systems, and strategic thinking to gear proposed developments towards a Net Zero Water Balance.
  • Energy Consumption: Hyperscale data centres require significant power, raising concerns about renewable energy integration and carbon footprints. Our team has a track record in preparing Sustainability and Energy Strategies to achieve low carbon solutions and reduce strain on the national power grid. Using the excess heat in other systems like district heating is also to be considered.
  • Noise and Light Pollution: Data centres are known for causing continuous noise which impacts local communities, and the environment. Our design solutions incorporate Hard Engineering and Nature Based Solutions to help mitigate these impacts.
  • Land Use: The pressure to consider undeveloped, Greenbelt, and AONB land (as per footnote 7 of the NPPF) may lead to long-term ecological, biodiversity and flood risk consequences. Data Centres are usually large and therefore may lead to habitat biodiversity loss. Our team is providing architectural landscape solutions that increase the biodiversity on site as well as reducing the visual impact of the new building.
  • E-Waste and Material Resources: The world of AI is moving rapidly, and this brings us many opportunities and benefits. Waterman’s Materials Passports help develop, operate, and decommission our buildings and data centres effectively through documentation and management of materials across the project lifecycle.
  • Climate Change: Data centres, now designated as Critical National Infrastructure (CNI), must consider disaster planning and climate adaptation. Across developments of every type, we’re implementing green and blue infrastructure strategies that mitigate over-heating effects, as well as using Nature Based Solutions for flood risk and/or noise management, and Local Green Energy Strategies to reduce reliance on the national power grid.

Navigating the environmental and strategic balance

While the revised NPPF acknowledges the critical role of data centres in the UK’s economy, it also highlights the importance of careful planning and sustainable development. Balancing national infrastructure needs with environmental protection will require collaboration between developers, LPAs, and policymakers. Addressing power supply, minimising ecological harm, and ensuring climate resilience are essential to meeting the UK’s data infrastructure demands while safeguarding the environment.

Want to find out how we’re supporting the sustainable growth on the data centre sector across the UK? Click here to head to our dedicated Date Centres webpage.