Data centres sit at the heart of the UK’s digital ambition, yet their growth presents one of the most complex energy challenges of this decade. By 2030, global electricity demand from data centres is expected to rise sharply, with consumption more than doubling in six years.[1] In the UK, this expansion runs headfirst into a stretched grid where new connections can take close to a decade to secure. At the same time, industry and government face mounting pressure to decarbonise. The question is no longer whether data-centre growth is compatible with the energy transition, but how we make it so writes Isobell Reid, Partner in the energy and renewables team at MFMac.
Other jurisdictions are already setting decisive precedents. Germany now requires data centres to source at least half of their electricity from renewables, rising to 100% by 2027. This is an ambitious policy, but it sends a clear market signal that digital infrastructure must support, not strain, the wider energy system.
In the UK there are promising signs of following in similar footsteps. For instance, DataVita’s recent investment in Lanarkshire demonstrates how new facilities can be designed with integrated clean energy solutions, with the site being powered by renewable energy and featuring a state-of-the-art closed-loop cooling system to minimise water consumption. These examples point towards a future where data centres act as long-term partners to the energy transition rather than passive consumers of grid capacity.
Reform in England and Scotland: a comparison
In England, the government has announced measures to support data-centre development alongside security of supply. The Nationally Significant Infrastructure Projects (NSIP) regime allows faster decision-making by the Secretary of State, while AI Growth Zones offer fast-track planning and infrastructure support. The reforms confirmed that clean-energy projects will be prioritised for grid connections, reinforcing the importance of low-carbon power for new infrastructure.
However, in Scotland whilst National Planning Framework 4 (NPF4) seeks to promote digital infrastructure there is a clear tension with the net-zero policies creating uncertainty around how planning authorities will assess planning applications. Planning authorities routinely assess carbon impact and infrastructure demand, but there is inconsistency in the formal conditions that tie developers to delivering new renewable capacity alongside data infrastructure which creates uncertainty for developers.
Embedding renewables in planning: a policy path for Scotland
To remain competitive in the global digital economy, the UK must build renewable integration into the planning system. That means reforming planning and consenting frameworks so that renewable integration is not optional but a prerequisite for approval.
At present, planning processes do not consistently link data-centre approvals with renewable energy investment. Developers may bring proposals for on-site generation, private-wire connections or grid-connected renewables, but these are often treated as enhancements rather than essentials. A more structured approach would require developers to demonstrate how they will contribute to new or expanded renewable capacity as a condition of consent. This could involve direct investment, long-term power-purchase agreements, or partnerships with energy developers to advance local generation.
Such obligations would do more than offset demand – they would create localised energy networks, reduce pressure on the national grid, and alleviate connection delays that hinder both digital and renewable infrastructure. By building renewable requirements into the planning process, local authorities could gain a clearer and more consistent basis for decision-making, while energy system operators gain certainty about how and where new capacity will be delivered.
This approach aligns with the planning reforms already under way across the UK, including efforts to accelerate delivery of renewable projects and modernise energy-infrastructure consenting. Linking the two agendas gives the UK a better chance of meeting its carbon budgets while providing industry with a stable regulatory environment.
The cost of inaction
As AI adoption accelerates and demand for high-performance computing grows, developers will increasingly choose markets with long-term energy security. Countries that introduce renewable obligations today are shaping tomorrow’s investment flows, and if the UK fails to act, it risks falling behind.
The UK has the opportunity to lead by building sustainable data infrastructure that drives growth and supports the energy transition – but this can only happen if planning policies provide clear and consistent signals. Embedding renewable requirements in approvals will unlock cleaner power, future-proof the grid, and strengthen the digital economy.
Data centres are here to stay. The real question is whether the UK will see them as a burden on the system or as a catalyst for a smarter, greener energy future. With the right planning reforms, we can choose the latter and set a higher standard for Europe to follow.
1 https://www.iea.org/reports/energy-and-ai/energy-demand-from-ai
