Artificial Intelligence Driving Development

By Dylan Keenan

Associate

The rapid growth of artificial intelligence (AI) is driving a sharp increase in demand for electricity. AI data centres, specialist facilities designed to process large volumes of data, require significant computing power, storage and advanced cooling systems. While data centres are not new, AI is pushing both their scale and energy use much higher.

This has led to growing demand for energy generation, particularly renewable energy schemes such as solar and wind farms, to support these facilities. In simple terms, more AI means more data centres, and more data centres mean much greater pressure on energy infrastructure. Data centres are now recognised by government policy as critical infrastructure. This recognition paves the way for both future policy and mindset change which will ultimately provide higher success rates and more certainty with planning applications.

From a planning perspective, development is still governed by the existing framework. The National Planning Policy Framework (NPPF) provides the starting point and generally supports renewable and low‑carbon energy development, alongside encouraging growth in infrastructure needed to support the economy.

The route to consent depends largely on the size of the proposal. Smaller schemes will proceed through the standard planning application process under the Town and Country Planning Act 1990. Larger schemes may fall within the Nationally Significant Infrastructure Projects (NSIP) regime and require a Development Consent Order (DCO).

In practice, applications for energy farms and AI-related infrastructure are often complex. As such this blog will only summarise the key planning considerations developers should focus on which are:

  • Landscape and visual impact, including how the development fits within the surrounding area;
  • Environmental effects, particularly on habitats, biodiversity and protected species;
  • Heritage impacts, especially where listed buildings or conservation areas are affected;
  • Agricultural land use, a common concern for solar schemes due to their size and unsuitability for residential areas; and
  • Local amenity, including noise, visual impact, and effects such as glint and glare.

These issues are often central to whether planning permission is granted.

Government policy increasingly recognises the importance of AI infrastructure, but one of the main practical challenges remains energy supply and grid capacity. Rising demand from data centres is placing additional pressure on existing networks and may require further investment and policy support to keep pace.

Overall, AI is beginning to reshape the planning landscape by driving demand for both data centres and energy infrastructure. While the existing planning system continues to apply, policy is gradually adapting to support this shift.

For developers, the opportunity is clear, but so are the challenges. Projects in this space are likely to remain complex and closely scrutinised. Early planning, careful site selection and a clear strategy to address environmental and local impacts will be key to securing permission.

If you are considering an AI data centre or supporting energy project, taking advice early can help you understand the process and improve the prospects of success.