Green belt site near M25 to host Europe’s largest AI data centre
Plans for Europe’s largest cloud and artificial intelligence (AI) centre near the M25 in Hertfordshire have been approved, in wake of the UK launching its so-called ‘action plan’.
The state of art facility will be built near the Elstree substation, 30 minutes from central London, and will span up to two million square feet, carrying a projected £3.75bn in construction costs.
Once completed, it will be one of the largest data centres in Europe, with the potential to serve major tech giants like Google, Amazon or Microsoft.
The approval was granted by the Hertsmere borough council on Thursday evening, just a week after the government launched its AI opportunities action plan.
The newly approved centre will play a key role in meting the growing demand for cloud capacity and AI technologies, aligning with Starmer’s plans for robust AI infrastructure in the UK.
Last Monday, Starmer said: “The AI industry needs a Government that is on their side, one that won’t slip back and let opportunities slip through its fingers.
“And in a world of fierce competition, we cannot stand by. We must move fast and take action to win the global race.”
Despite being located within the green belt, the site, which is currently agricultural land, has been considered suitable for development due to its limited contribution to green belt purposes.
From green belt to grey belt?
Officers recommended that it be reclassified as a “grey belt” for the project, according to Harrow Online.
Once operational, the data centre is expected to generate significant economic benefits, including £21.4m in annual business rates, and an estimated £1.1bn in gross value added per year.
It will also reportedly created 500 construction jobs, 200 permanent site roles, and over 13,000 indirect positions, with a significant portion of those based in the South East.
The council announced that there will be additional benefits to local infrastructure, such as £2m worth of improvements to bus routes, expanded cycle schemes, and better road crossings and footpaths.
The project is also committed to maintaining 54 per cent of its 85 acres as green space, to achieve a 10 per cent net biodiversity gain.
It will include a power reservation from national grid, positioning it close to key fibre optic routes and zones of regional availability.
A spokesperson for the project said: “This approval is a huge step forward, both for Hertsmere and the UK’s digital economy. The data centre will bring significant benefits, included skilled jobs, economix growth, and enhanced transport links.”
The project was widely discussed last September when the government reclassified data centres as critical national infrastructure.
Minister for telecoms Sir Chris Bryant praised the approval, adding: “Data centres are the backbone of our digital infrastructure. This project aligns perfectly with the Government’s AI opportunities action plan, supporting economic growth and skilled job creation across the South East”.
Councillor Jeremy Newmark, leader of the borough council, also hailed the project as “momentous”.
He said: “This development reinforces Hertsmere’s reputation as a prime location for business and technology. The economic and technological benefits will serve the community for generations, while also complementing our thriving local film and TV industry”.