Plans submitted for new £3.75bn data centre in Hertfordshire

By
BE News Team

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DC01UK has submitted plans for a new, state-of-the-art data centre in Hertsmere, Hertfordshire.

The facility, which would provide up to 2m sq ft of floor space, would be one of the largest data centre campuses in Europe. DC01UK hopes to build the campus on 85 acres of land adjacent to the A1 and M25, just east of South Mimms Services.

The site already has a power reservation of 400MVA from National Grid thanks to its proximity to the Elstree (Letchmore Heath) substation.

Subject to planning, the campus could be operational in 2029 and the project has an estimated construction value of approximately £3.75bn.

Earlier today, the government announced that data centres powering the economy will be put on the same critical footing as energy and water systems, bolstering security and resilience and boosting industry’s confidence in the UK ecosystem.

A spokesperson for DC01UK said: “The ambition for this project is to build the next generation of national digital infrastructure to power the needs of tomorrow. DC01UK is a unique and world-leading project. It will be the UK’s premier data centre, providing critical infrastructure for the UK’s future, generating approximately £3.75bn for the UK economy during the construction phase, and delivering huge economic benefits to the UK and brilliant opportunities for local people.

“This project would put Hertfordshire at the forefront of one of the most technologically exciting projects in Europe and lead the world in setting the gold-standard for the next generation of high-tech infrastructure. We also take our green commitments very seriously, with our environmental credentials exceeding industry standards, and innovating to find new and sustainable solutions which will benefit both the data centre as well as local people and businesses.

“We’re incredibly proud that our plans include significant regional benefits too – including £21m additional revenue in business rates, a brand new technology and innovation hub to provide training and apprenticeship opportunities for local people, significant improvements to local transport infrastructure, and 200 new, high-quality, permanent jobs at the site once completed.”

Peter Kyle MP, technology secretary, added: “Data centres play an essential role in British society, housing some of our most important data from vital NHS records to sensitive financial information. This huge £3.75bn proposed investment is a vote of confidence in our plans to support the sector to thrive, ensuring everyone across society can feel the economic benefits of its growth. To achieve this, we must make the sector resilient to the challenges of today – from heatwaves to cyber attacks – which is why only today we have announced we will class data centres as ‘Critical National Infrastructure’, on par with energy supply systems.”

Jeremy Newmark, leader of Hertsmere Borough Council and chair of Hertfordshire Growth Board, said: “This is incredibly exciting news. It shows that Hertsmere is an extremely desirable location for business and is a natural base for the cutting-edge technology and critical infrastructure which will serve Britain in the coming years and for many future generations.

“The project is aligned with the council’s vision. It will be a major boost for our economic development, creative and climate change strategies. The prospective economic benefits are clear. A scheme like this will deliver significant growth for the area. It will create many new jobs, both during and after construction, and new businesses. Of course, the application is subject to the planning process during which we will, as always, listen and speak to residents about the plans, and a public consultation on the proposals will be held for people to give their views. I am certain that local people will realise the benefits of the scheme. It has my full support.”

Stephen Beard, head of data centres at Knight Frank who is advising on the project, said: “Given the existing dearth of cloud supply against the backdrop of unprecedented demand and that of the immediate explosion of AI deployment, the requirements for suitable development sites that offer the necessary access to scalable power, internet connectivity and ultimately proximity to homes and businesses who are reliant on the data traffic within these facilities is becoming increasingly challenging.

“In the last decade, I have yet to see a site that can meet both the cloud needs of today whilst protecting the AI need of tomorrow, until now. I am hugely excited for the benefit DC01UK will bring to the UK both from a direct economic investment perspective and its ability to ultimately position the UK as a leader in the global digital economy.”

Giles Dobson, head of rural at Bidwells, which acted on behalf of the landowner in facilitating the planning submission, added: “These core locations are becoming increasingly important for development in a fast-modernising economy, and it is a testament to our team’s agility and technical expertise that we have moved so quickly to capture this interest. As set out in our The Productivity Engine report released earlier this year, the UK assumes a strategic advantage within the sphere of data centre investment, and is enabled by access to over 50 submarine cables that link it to Europe and North America.”

Andrew Groves, partner and head of capital markets at Bidwells, said: “This transaction represents a massive vote of confidence in the UK economy, so we are very proud to have played a role in making it happen through acting on behalf of our landowner client.”

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