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    Home»Business»Company News»A backlash over data centres is another threat to the AI juggernaut
    Company News

    A backlash over data centres is another threat to the AI juggernaut

    AdminBy AdminSeptember 16, 2026No Comments2 Mins Read
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    A backlash over data centres is another threat to the AI juggernaut
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    The Labour government last year designated data centres as Critical National Infrastructure, part of its strategy to help fast track their roll out.

    It views data centres as underpinning public services and crucial to attract investment and allow Britain to compete in the global economy.

    The argument it makes is national economic benefit, but the political challenge is whether locals will put up with it. One of the first acts of the new Labour government was to back a Buckinghamshire data centre that had been repeatedly rejected by the local council because it was going to be built on the green belt.

    Permission was granted by ministers, but then challenged by campaigners after a crowdfunded court case, for failing to consider environmental impact. The Government acknowledged errors, quashed its own approval, and the developer eventually conceded it needed to agree binding clean energy obligations with the council. The victorious campaigning group, Foxglove, vowed to refocus its efforts on challenging other data centre schemes across the UK.

    Water is another area of concern for campaigners. The tech industry argues its requirements are not so heavy when you consider how much water is lost to leaks, for example.

    In a submission to a Commons committee the trade body Water UK criticised “not a single mention of water” in Government AI growth strategies. “There appears to be an assumption that the country will always have enough water for its economic needs. Nothing could be further from the truth.”

    Much of the recent UK effort to expand data centres was aimed at areas strategically chosen based on a combination of their potential contribution to the economy, the availability of brownfield sites to develop and their existing connections to energy grids and electricity generation. These areas have been dubbed AI Growth zones.

    But even in these places, the political balance between growth and the environment led to hold-ups within Cabinet. A scheme in Teesside saw a tug of war between ministers over whether it should be used for a low carbon hydrogen energy scheme, or a massive new AI data centre. The data centre won out.

    Backlash centres data juggernaut Threat
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