Westminster Policy News & Legislative Analysis

England adds data centres to NSIP regime from 8 January 2026

Data centres have been added to the prescribed list of business or commercial projects eligible for a section 35 direction under the Planning Act 2008. The change is made by the Infrastructure Planning (Business or Commercial Projects) (Amendment) Regulations 2026 (SI 2026/13), which are now in force. ([tsoshop.co.uk](https://www.tsoshop.co.uk/Daily-Publishing-List/Statutory-Instruments?utm_source=openai))

Adding data centres to the Schedule of the 2013 Regulations means the Secretary of State may, on request, direct a qualifying proposal to be decided through a Development Consent Order under the Nationally Significant Infrastructure Projects regime rather than the local planning system. The insertion sits alongside existing categories such as office use, research and development, and storage or distribution. ([legislation.gov.uk](https://www.legislation.gov.uk/ukdsi/2013/9780111105375?utm_source=openai))

Section 35 of the Planning Act sets the legal gateway. A direction can be made only where the project falls within a prescribed business or commercial description, the development lies wholly in England or specified adjacent waters, and the Secretary of State judges it to be of national significance-either alone or when considered with other projects in the same description. ([legislation.gov.uk](https://www.legislation.gov.uk/ukpga/2008/29/section/35?utm_source=openai))

Geography matters. While the instrument extends to England and Wales, section 35 directions for business or commercial projects apply to development in England or adjacent waters. Where any part of the development is in Greater London, a direction also requires the consent of the Mayor of London. ([legislation.gov.uk](https://www.legislation.gov.uk/ukpga/2008/29/section/35?utm_source=openai))

There is no fixed numeric threshold for ‘national significance’ under section 35. Government guidance indicates the Secretary of State will consider factors such as scale, cross‑boundary impacts, economic importance and whether a single consent would be more effective than multiple consents. Published directions show similar reasoning, citing wide geographic benefits and substantial economic effects. ([gov.uk](https://www.gov.uk/guidance/planning-act-2008-pre-application-stage-for-nationally-significant-infrastructure-projects?utm_source=openai))

Where no other consent application is already under way, a direction can be made only in response to a ‘qualifying request’. If a direction is given, guidance expects it to be time‑limited-typically around five years-to enable progress to an application. ([gov.uk](https://www.gov.uk/guidance/planning-act-2008-pre-application-stage-for-nationally-significant-infrastructure-projects?utm_source=openai))

Once directed into the NSIP regime, statutory timetables apply. The examination is capped at six months, followed by up to three months for the Planning Inspectorate’s recommendation and a further three months for the Secretary of State’s decision. A fast‑track variant aims to compress the overall consenting period to about 12 months where quality standards are met. ([infrastructure.planninginspectorate.gov.uk](https://infrastructure.planninginspectorate.gov.uk/application-process/%20the-process/?utm_source=openai))

For developers, the amendment offers a strategic route where grid connection, land assembly or cross‑boundary effects make a single Development Consent Order more practicable than multiple consents. Early pre‑application engagement with the Planning Inspectorate and host authorities remains critical, including Environmental Impact Assessment scoping and work on a draft DCO. ([infrastructure.planninginspectorate.gov.uk](https://infrastructure.planninginspectorate.gov.uk/application-process/%20the-process/?utm_source=openai))

Local authorities remain integral participants. They are statutory consultees, submit a Local Impact Report early in the examination, and provide written evidence and statements of common ground. This ensures local evidence and mitigation priorities are embedded in the Secretary of State’s decision‑making. ([gov.uk](https://www.gov.uk/guidance/nationally-significant-infrastructure-projects-advice-for-local-authorities?utm_source=openai))

Parliamentary scrutiny has recorded the policy intent to use the NSIP route to accelerate large data centre proposals and noted that a dedicated National Policy Statement for data centres is expected to be consulted on to frame decision‑making. No standalone impact assessment accompanied the instrument. ([publications.parliament.uk](https://publications.parliament.uk/pa/ld5901/ldselect/ldsecleg/197/19703.htm?utm_source=openai))