Labour intends to bypass local councils to construct data centres on green belt land, aiming to enhance the UK’s artificial intelligence sector. Peter Kyle, the shadow science, innovation, and technology secretary, is exploring the possibility of classifying data centres as nationally significant infrastructure projects. This would allow developers to overcome local opposition.

The UK faces a shortage of data centres to meet the growing demand for cloud computing and AI. Easing planning restrictions is expected to increase applications for data centres on green belt land, especially in the west London data “corridor,” the largest data hub outside the US.

Industry experts argue that brownfield sites on green belts are among the few viable locations for large modern data centres needed to support urban populations. By designating these projects as nationally important, planning decisions would be made by ministers instead of local councils.

Last year, plans for the UK’s largest “hyperscale” data centre, with a proposed £2.5bn investment, were blocked due to green belt protections. The developer criticised the decision as “green belt theology,” highlighting the need for planning reform.

Mr Kyle recently met with major data centre investors on the US West Coast, including Microsoft, Amazon, and Oracle. Difficulties in securing planning permission in Britain were a key concern raised, particularly by Microsoft, which is heavily investing in AI infrastructure.

Microsoft and Google have both announced new UK data centre projects in the past year, but the cumbersome planning process remains a significant industry frustration. Once built, large data centres typically provide hundreds of construction jobs and a smaller number of permanent positions. They are crucial for high-powered AI services, which Labour aims to leverage to reduce NHS waiting times and enhance public services if elected.

Labour is increasingly focusing on technological opportunities amid spending constraints. Darren Jones, the shadow chief secretary to the Treasury, is working with Mr Kyle and Pat McFadden, the party’s national campaign coordinator, to identify areas for AI deployment across government departments. This effort is part of a broader strategy to boost productivity, especially in healthcare, where spending is expected to rise due to an ageing population.

Pilot schemes are already underway in four Welsh hospitals, using AI to predict patient discharge times accurately. “There really is no money left this time, so they have to take a different approach to public spending,” said a source.

Mr Kyle is expected to meet with technology companies at Imperial College London on Monday to secure support ahead of London Tech Week. The Government had published a consultation in December considering data centres as critical national infrastructure, but it has yet to respond to the evidence collected.

TechUK, the industry lobby group, has called for an overhaul of planning laws to support data centre construction, pointing out that current regulations do not specifically address data centres, which are classed as storage facilities like warehouses.

Nationally Significant Infrastructure Projects (NSIPs), such as airports and power plants, are managed by the Planning Inspectorate, bypassing local authorities. Labour’s shadow justice secretary, Shabana Mahmood, recently stated that prisons would also be designated as nationally important to support their construction.

Even if data centres are not classified as critically significant, Mr Kyle has assured the tech industry that Labour will reform planning laws to facilitate the development of more facilities.