
A debate has intensified in England over a potential moratorium on new data centres, highlighting a critical tension between the nation's growing digital infrastructure needs and environmental sustainability. Green Party leader Zack Polanski has called for a halt to new approvals, citing concerns over significant energy and water consumption, particularly amidst drought conditions1. This stance contrasts sharply with the UK government's position, which warns that a freeze could jeopardise investment, jobs, and national security.
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The discussion around data centre expansion in England has reached a pivotal point, with environmental concerns clashing with economic and strategic imperatives.
Green Party leader Zack Polanski has urged the UK government to "slam the brakes on these energy guzzling, water guzzling data centres". His call for a moratorium on new data centre approvals in England stems from concerns that the rapidly expanding industry strains vital resources, especially during periods of drought. Polanski also criticised the government's classification of data centres as critical infrastructure, stating, "At a time when three-quarters of the country is in drought, it is outrageous that these are being considered critical infrastructure". The Green Party advocates for tougher environmental requirements, greater local community input, and transparency regarding water and electricity usage by these facilities. They also want new data centres to be built on brownfield sites and close to renewable energy sources, with operators publishing annual figures on water and electricity consumption.
The UK government has firmly opposed a data centre freeze, arguing that such a move would "simply send investment and good jobs abroad". A government spokesperson warned that it would also negatively impact national security by leaving Britain dependent on overseas computing for sensitive health and defence data. While supporting the sector, the government has clarified that this does not amount to a "blank cheque" for every proposed data centre. Developers are expected to prioritise clean power, responsible water use, British supply chains, and investment in local communities. The government also pointed to water lost through leaks, noting that roughly a fifth of the country's water supply is lost this way.
The environmental footprint of data centres is under increasing scrutiny, particularly their demand for energy and water.
Data centres are the unseen backbone of the digital economy, powering everything from cloud services to AI. The BBC last reported that there were about 477 data centres in England, with a large proportion concentrated in London and the south.
Cooling is essential for data centre operations, as the equipment generates significant heat. Many facilities use water for cooling, leading to concerns about consumption, especially in water-stressed regions. The Water Research Centre consultancy estimated in February that data centres in England use about 1.9 billion litres of drinking water annually, representing approximately 0.2% of the non-household water market. Environmental charity Global Action Plan estimated that large data centres could consume as much as 1.5 million litres of water a day. A significant proportion of data centres are concentrated in London and the south of England, areas frequently classified as being in drought. Currently, there is no requirement for UK data centres to report their water consumption.
Data centres were designated as critical national infrastructure (CNI) in the UK in 2024. This classification provides them with additional government support during incidents such as cyber-attacks and extreme weather events. The Green Party has argued that this designation could allow data centres to receive priority over households for water during shortages, though the government has rejected this, stating that data centres would not automatically receive priority when water supplies are under pressure.
The data centre industry is actively responding to environmental pressures through various initiatives and technological advancements.
Mark Acton, Executive Director of the Data Centre Alliance (DCA), has countered claims that data centres place an undue burden on resources. He emphasised the essential role of these facilities in modern life.
"Data centres are not just AI, data centres run our lives... social media runs through data centres, our banking systems run through data centres." — Mark Acton
Acton also noted that data centres use less water than leisure centres and golf courses, and that obtaining planning permission for new facilities is already a challenging process, even in areas designated as AI growth zones.
To address energy and water consumption, the industry is exploring advanced cooling technologies. These methods can be significantly more efficient than traditional air-cooling systems, potentially reducing both energy and water requirements.
Integrating renewable energy sources is a key strategy for enhancing the sustainability of data centres.
The evolving landscape necessitates careful policy development and strategic planning to ensure sustainable digital infrastructure growth.
The introduction of AI Growth Zones has been noted, though obtaining planning permission for data centres, even in these areas, remains "very difficult".
Calls from groups like the Green Party for greater local community input and transparency on water and electricity usage highlight the need for data centre developers to engage more effectively with local stakeholders. Addressing community concerns about environmental impact, noise, and visual effects is crucial for gaining social licence for new developments. Increased transparency can help build trust and facilitate more informed local planning decisions.
Strategic planning for energy and water supply is essential, considering the impact of climate change and investing in infrastructure that can adapt to future demands. The industry's reliance on a robust and sufficient energy supply, coupled with the need for responsible water management, underscores the importance of integrated planning that goes beyond individual site considerations.
The debate around data centre growth often frames the issue as one of scarcity, but a different perspective suggests that abundant, clean energy can transform this challenge into an opportunity.
The narrative that data centres are inherently "guzzling" resources and must be restricted often stems from a scarcity mindset regarding energy provision. However, this perspective overlooks the potential of abundant, clean energy to support critical infrastructure without environmental compromise. By shifting focus from limiting demand to expanding sustainable supply, the conversation moves towards systemic solutions rather than restrictive measures.
A future with ample, clean energy can significantly enhance the operational resilience of data centres. A stable and abundant power supply mitigates risks associated with grid constraints, energy price volatility, and the increasing demand from AI workloads. This energy security allows data centres to operate reliably, ensuring the continuous functioning of the digital services that underpin modern society.
Fuse Energy believes in building a future with power to play with, where energy is so abundant it ceases to be a limiting factor. This vision aligns with the needs of a growing digital economy, demonstrating how a systemic change in energy provision can secure a stable and ample power supply for critical infrastructure like data centres. By advocating for abundant, clean energy, Fuse Energy positions itself as a thought leader in national energy solutions, challenging the scarcity story and enabling sustainable growth across all sectors.
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