The Greater London authority has introduced a new GLE3 policy that requires local planning authorities to identify sites for future data center developments through its Draft London plan (2026). The policy is intended to provide a planning framework for the data center sector’s continued expansion across London while addressing pressures on electricity and water infrastructure, land availability and environmental constraints.
The policy also sets sustainability requirements for new data centers which include heat recovery, efficient electricity and water usage, low impact cooling systems and renewable energy generation where feasible. Local authorities will be obligated to set Community Infrastructure Levy (CIL) rates for designated sites to help mitigate the impacts of development. Where suitable locations cannot be identified within a borough, councils are expected to work with neighboring authorities before considering facility development in grey belt or green belt areas.
Data center developments in suitable locations will be supported in principle. Proposals elsewhere must justify their location, determine how infrastructure impacts will be managed, and demonstrate that electricity connections will not create unnecessary disruption. Green Belt locations should only be considered where suitable brownfield sites are unavailable.
The policy also introduces requirements for back-up power systems. Operators must minimise generator testing, use the lowest-emission engines and fuels available, apply best-practice emissions controls, and ensure testing arrangements reduce impacts on nearby communities. Authorities must consider cumulative effects where multiple data centers operate in the same area.
Data centers are not classified as industrial land under the London Plan. Until suitable locations are identified through local plans, proposals on industrial sites must still meet the policy’s location and sustainability requirements.
The guidance notes that demand for data centers is changing rapidly, particularly due to growth in artificial intelligence (AI) and digital services. Planning authorities are expected to regularly review the scale and impact of development using updated evidence on electricity networks, energy demand and infrastructure capacity.
London is already home to one of Europe’s largest data center clusters, supporting technology and data-driven industries. The policy states that future growth should focus on facilities which are energy efficient, environmentally responsible and capable of delivering wider benefits, including skills development, affordable computing access, workspace opportunities and local infrastructure improvements.