MPs launch data centres group to balance growth & net zero

MPs and peers have launched a new All-Party Parliamentary Group focused on data centres, with a call for evidence from operators, developers, investors and public bodies.

The Data Centres APPG brings together members from Labour, the Conservatives and the House of Lords. Chris Curtis, Labour MP for Milton Keynes North, chairs the group. Lewis Cocking, Conservative MP for Broxbourne, acts as Co-Chair. Other officers include Alison Griffiths, Conservative MP for Bognor Regis and Littlehampton, and Lord Hunt of Kings Heath, a Labour peer and former Minister of State for Energy Security and Net Zero.

The group said it will examine the role of data centres in economic growth, digital infrastructure resilience and net zero ambitions. It said it will also scrutinise challenges and opportunities facing the sector, including energy and planning considerations.

Evidence drive

The APPG has opened a consultation and invited submissions from operators, developers, planners, local authorities, investors and technical experts. It said the findings will inform its terms of reference and determine areas of focus for 2026.

The group listed potential contributors across the supply chain and policy landscape. It said it wants input from energy suppliers and network operators, water providers and utility companies, consultancy and professional services, combined authorities and local leaders, technology companies and cloud providers, trade bodies, environmental and community groups, academia and skills providers.

Data centres have become a prominent policy issue amid rising demand for cloud services, artificial intelligence workloads and content delivery. The facilities also raise questions for planning authorities and for electricity networks, given their high and often continuous power requirements.

Economic weight

Industry estimates cited by the APPG point to a significant economic footprint. The UK has an estimated 450 data centres, supporting around 43,500 jobs. Of these, 24,300 are described as direct roles at data centres.

techUK estimates data centres directly contribute £4.7 billion in annual gross value added to the UK economy. The trade body also estimates the sector could generate an additional £44 billion in gross value added and £9.7 billion in tax revenue between 2025 and 2035.

Curtis said Parliament needed a better evidence base on the sector and its trade-offs.

"Data centres are a vital part of the UK's digital economy, and it is essential that we remain an attractive destination for the investment that drives growth and creates high-skilled jobs.

As Chair of the APPG, I want to ensure Parliament has the evidence and understanding it needs to shape a balanced approach. One that supports development, delivers real economic benefits, and works for local communities, while recognising wider considerations.

Getting this right will be critical to securing the UK's long-term digital future" said Chris Curtis MP, Chair, Data Centres APPG.

Local impacts

Planning and community impact sit high on the agenda in areas that host large-scale facilities. In some cases, proposals and construction can raise issues over grid connections, land use, traffic, water consumption and local environmental impacts.

Cocking pointed to investment interest in his constituency and said the APPG would focus on local input and standards.

"Data centre development must work for the communities that host them. Google's £1 billion investment at Waltham Cross is a clear sign of Broxbourne's growing importance as a hub for technology and innovation, and we must ensure this growth delivers genuine benefits for local people.

This new APPG will focus on ensuring that local voices are heard in planning processes, that developments deliver tangible benefits such as local jobs and waste heat utilisation, and that the highest environmental standards are met.

Local residents need to have a real say in projects like these. We'll work to ensure developments like Google's enhance Broxbourne and other local areas while meeting our environmental commitments." said Cocking.

Net zero

Energy policy and decarbonisation form another strand of the group's remit, as data centres seek access to large power supplies while corporate customers and policymakers focus on emissions. Operators have pursued measures such as more efficient cooling and procurement of renewable power, while network operators assess grid capacity and reinforcement needs.

Lord Hunt said the group would look at the alignment between growth and climate commitments, including links to grid investment and heat reuse.

"As a former Minister of State for Energy Security and Net Zero, I've seen firsthand how critical it is to align infrastructure growth with our climate commitments. Data centres are major energy users, but they're also driving innovation in renewable energy procurement and efficiency," said Hunt.

"This APPG will focus on ensuring their growth supports our net-zero ambitions, exploring how these facilities can contribute to clean energy infrastructure, utilise waste heat, and support grid modernisation," added Hunt.

"With the right policy framework, we can build the digital capacity our economy needs while advancing our environmental goals. Data centres shouldn't be seen as a challenge to net zero, but as part of the solution." saiid Hunt.

The APPG said it will use consultation responses to set its work programme for the year and develop policy recommendations on development, infrastructure and sustainability.