UK’s £1bn AI data centre thrown into doubt after ministers concede ‘serious error’

January 23, 2026
UK’s £1bn AI data centre thrown into doubt after ministers concede ‘serious error’

LONDON, Jan 23, 2026, 15:14 GMT

  • The UK High Court has greenlit a legal challenge against the government’s approval of a 90-megawatt hyperscale data centre in Buckinghamshire
  • Ministers agreed to quash the planning consent because the climate safeguards outlined in the approval were not met
  • This case challenges Britain’s effort to accelerate data centre construction amid growing demand for AI computing power

Britain’s High Court has greenlit a legal challenge against government approval of a 90-megawatt hyperscale data centre planned near London in Buckinghamshire. A letter to the court revealed officials agree the consent should be overturned, citing that the climate mitigation measures the approval depended on were never secured. (Reuters)

The ruling comes as ministers rush to accelerate data centre construction to back artificial intelligence services, notorious for heavy electricity and cooling demands. Campaigners warn the planning process is being hurried, sidelining crucial climate calculations.

Promoters plan to develop the West London Technology Park on a former landfill site near the M25 at Iver, Buckinghamshire. The project sparked controversy when central government intervened amid local opposition.

Foxglove, a tech justice group, and the environmental charity Global Action Plan contend that ministers overlooked the climate impact of the power required to run and cool the facility. Their lawyers argue the approval ignored the “much larger” electricity demand from computing equipment compared to office use.

The government has admitted its justification for skipping an environmental impact assessment, or EIA—a formal review of potential effects on land, water, and climate—was flawed. The core of the debate has been whether voluntary “mitigation” commitments suffice, or if mandatory conditions and a more thorough assessment are necessary.

Foxglove co-executive director Rosa Curling argued it “shouldn’t take” a legal battle for ministers to concede the decision was flawed. Sonja Graham, CEO of Global Action Plan, noted rising public worries about how new data centres will impact “access to water and power.” (Foxglove)

Developer Greystoke Land has pushed back, insisting the project received proper approval, according to court documents. With this ruling, the challenge moves forward to a more comprehensive hearing scheduled for later this year.

This setback clashes with Labour’s broader argument that speeding up approvals would fuel private investment in AI and digital infrastructure. In 2024, the government tagged data centres as critical national infrastructure. Former technology secretary Peter Kyle described them as “the engines of modern life,” according to the Guardian. (The Guardian)

The project is pegged at about £1 billion, forming part of a pipeline that’s pulled in tens of billions of pounds in investment since 2024, the Financial Times reported. Most UK data centres are concentrated around Greater London, though new clusters are popping up in Manchester, northeast England, and South Wales. (Financial Times)

The legal setback might not be the end of the road for the scheme. The government could issue a new decision imposing enforceable environmental conditions or demand an EIA, even while the court case drags on and the broader data centre boom bumps up against power and water limits.