UK gives data centers option to apply for ‘national importance’ status that overrides local regulations, cuts timeline by a year — eligible projects to bypass local councils, save more than a billion dollars in NIMBY fights

The UK just gave Nationally Significant Infrastructure Projects (NSIPs) the right to bypass pre-application consultation with local council planning processes, meaning the green light will come directly from the national government. According to The Register, NSIPs are major projects that the state considers to be nationally important, like power plants and railways. Data centers were included in this list earlier this year, meaning these developments could now get approval directly from the national government instead of going through hoops in local councils. Still, this is an opt-in process requiring developers to apply for the status.

“Datacenters are not automatically consented as NSIPs; instead, the NSIP regime operates on an opt‑in basis for developers,” the law firm Womble Bond Dickinson told the publication. “A datacenter project may be directed into the NSIP regime where the Secretary of State considers it to be of national significance and satisfied that the statutory tests under section 35 of the Planning Act 2008 are met.” However, it also said that there are no clear guidelines yet from the government on what would make a data center qualify for NSIP status.

The Ministry of Housing, Communities, and Local Government (MHCLG) said that this change could reduce planning and application by up to one year and save developers up to USD 1.3 billion (GBP 1 billion). Aside from this, they’ll also get technical support and meaningful advice from the Planning Inspectorate before submitting applications, ensuring that the process will run more smoothly and efficiently.

This change will make it much faster for data center projects to get off the ground in the UK, with three projects already benefiting from their classification as an NSIP. It seems that the British government is learning from the chaos happening across the pond, as 7 out of 10 Americans are now against data center projects being built close to their communities. These “not in my backyard” fights are turning into costly (and lengthy) legal battles, with developers facing resistance at the town, county, and state levels. This has also resulted in a growing number of data center bans passed by local governments, with more than 75 projects worth $130 billion delayed across the nation in just the first quarter of 2026.

There are concerns that the lack of qualifications would mean that every AI data center could quality as “nationally significant.” The UK’s Department for Science, Innovation, and Technology (DSIT) is said to address this through a National Policy Statement (NPS) set to come out later this year. But, in the meantime, more than 80 projects have already sought the pre-application service from the Planning Inspectorate to help make developments like data centers get off the ground much faster.