Want to build a UK datacenter? Please hold while Whitehall transfers you
Minister insists responsibilities are clear as construction, telecoms, and energy fall under separate departments
UK datacenter construction involves multiple government departments, each with distinct responsibilities. The Department for Business, Innovation, Science and Trade (BIST) oversees datacenter policy, while telecoms fall under the Department for Digital, Culture, Media and Sport (DCMS). Energy considerations are handled by the Department for Energy and Net Zero.
Local government is responsible for planning permission, with overall policy determined by the Ministry of Housing, Communities and Local Government. Despite clear departmental divisions, some responsibilities overlap. Liz Lloyd, an MP, explained that following former Prime Minister Andy Burnham's summer reshuffle, liaison with the tech industry shifted to BIST, while digital infrastructure is managed by DCMS.
She acknowledged the complexity of departmental responsibilities, noting that technology and telecoms each have their respective departments, while datacenters fall under BIST. The process of building a datacenter also requires securing power, which would be managed by the Department for Energy and Net Zero. Planning permission is granted by local government, with overall policy set by the Ministry of Housing, Communities and Local Government.
Microsoft's decision to abandon plans for Britain's largest AI supercomputer due to power availability challenges underscores the difficulties businesses face in navigating this bureaucratic maze. The government's claim of £45 billion in productivity savings from modernizing technology and digitizing processes remains controversial, with Lloyd clarifying that the figure is an estimate of long-term gains, not an immediate or guaranteed return on investment.
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