Data center companies are being asked to help shape the new UK industrial strategy, with the government promising to put infrastructure and energy investments at the heart of its plans to boost the economy.
A green paper, Invest 2035: the UK’s Modern Industrial Strategy, was released on Monday as the government opened a consultation on the strategy, which will be published next year. The paper highlights some of the principles that will shape the strategy’s development, and businesses have six weeks to make comments, or suggestions about what should be included.
It is the first time the UK has attempted to develop an industrial strategy for seven years. Business secretary Jonathan Reynolds said: “Our modern Industrial Strategy will hardwire stability for investors and give them the confidence to plan not just for the next year, but for the next 10 years and beyond.”
The green paper says “targeted, long-term infrastructure investment is a vital catalyst to the success and stability of major city regions and clusters of our growth-driving sectors,” and says work is needed to continue to roll-out of 5G and gigabit broadband for businesses and residents.
It argues that “additional data center capacity and access to fast, secure, and reliable digital connectivity is essential to enabling economic growth and to reap the transformational productivity benefits of digitization and the adoption of AI.”
Since taking office in July, Labour pledged to change rules to make it easier for data center developments to gain planning permission. Immediately following the general election, Deputy Prime Minister Angela Rayner said the government would reopen two planning applications for data centers that had been rejected by local authorities. One of these, a 96MW hyperscale facility planned for Abbots Langley, Hertfordshire, is now the subject of a public inquiry which opened last week.
UK data centers have also been designated critical national infrastructure by the new government, meaning operators can seek greater government support in case of emergencies.
In the green paper, the government said it would develop a 10-year infrastructure strategy, which will run in conjunction with the Industrial Strategy to ensure long-term infrastructure projects are not held up.
It has also pledged to look at the availability of connections to the energy grid and boost the supply of renewable energy, noting that new industrial developments such as data centers often have to wait more than five years before getting access to the power they need.
Microsoft UK CEO Clare Barclay is heading up a new Industrial Strategy Advisory Group, which will provide expert advice developed in partnership with business, unions, and stakeholders from across the UK. Companies can submit their consultation responses here, and have until November 24 to do so.
The green paper was launched as the government welcomes businesses from around the world to an investment summit, taking place in London today. As reported by DCD, major players in the data center market, including Blackstone, CyrusOne, and CoreWeave, are among the attendees.