The gap between strategic value and local acceptance when developing data centres

The Savills Blog

The gap between strategic value and local acceptance when developing data centres

Data centres are a core component of the UK’s digital and economic fabric, designated as Critical National Infrastructure. 

At the same time, the expansion of data centre capacity has elevated social-impact considerations in planning and investment decision making. In a UK context, these impacts are best assessed through community acceptance and associated planning risk, often described as the ‘social licence to operate’, and the socioeconomic contribution generated by data centre development at national and local levels.

 

Community impact

From a community perspective, data centres present a challenging proposition. While nationally strategic, they are often perceived as large, opaque assets, with limited employment relative to their physical footprint and power demand. Common planning concerns include land take, visual impact, construction disruption, noise, and competition for grid capacity.

These issues are particularly acute in fringe locations, where data centres may sit alongside residential uses. However, even policy-compliant schemes can face elevated planning risk when local engagement is weak, or an imbalance is perceived between local costs and benefits. This tension sits in contrast to the sector’s contribution at a national level. According to techUK (2024), data centres currently contribute around £4.7 billion in gross value added (GVA) per year to the UK economy, support approximately 43,500 jobs, and generate around £640 million in annual tax revenues.

As a result, greater emphasis is being placed on how national-level benefits translate into tangible local outcomes, including skills development, apprenticeships and local procurement to ensure that investment in the sector delivers benefits.

 

How does this translate into outcomes?

Skills pathways are among the most effective ways to translate these enabling benefits into outcomes. Ark’s Union Park scheme provides a clear illustration, with the project forecast to deliver 4,347 weeks of employment and training, including 2,273 weeks of apprenticeship and pre-apprenticeship opportunities targeted at local residents. This is alongside sustained engagement with schools and careers programmes helping to raise aspirations and increase awareness of careers in technology, digital infrastructure and innovation.

Similarly, Ada Infrastructure’s Docklands Data Centre Campus includes plans for a multifunctional building designed to support technology training and contribute to Newham Council’s broader ambitions for growth in the data and digital economy. Importantly, these initiatives demonstrate how data centres can create broader societal value by inspiring local people to pursue careers in AI, technology, and innovation, leveraging the reach of operators, customers and industry networks to strengthen local talent pipelines.

 

Planning considerations

In parallel, planning authorities are increasingly exploring mechanisms through which data centres can contribute more directly to local sustainability and decarbonisation objectives, helping strengthen community acceptance. An example is the potential reuse of waste heat, which has attracted growing policy and local interest. In West London, the Old Oak and Park Royal Energy Network illustrates how heat reuse is being positioned within planning and regeneration policy, with the scheme designed to supply more than 9,000 homes and businesses once operational. However, heat reuse remains selective and highly context specific.

 

Social impact at the core

These dynamics show how social impact is key to data centre viability in the UK. Community acceptance cannot be assumed, and developers, investors and policymakers must bridge the gap between national strategic narratives and locally meaningful outcomes, ensuring that future data centre growth is economically productive and socially sustainable.

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