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As worries about data centres' excessive use of water and electricity grow, City Hall is preparing a significant change in how London handles their quick growth.
According to officials, the new policy will seek to strike a balance between these facilities' economic value and their increasingly apparent environmental impact.
Data centres—large facilities that house servers and other IT infrastructure—are critical to the digital economy, but they have a high carbon footprint.
According to estimates, every ten large data centres could emit up to 2.7 million tonnes of carbon. Water usage is another growing concern, especially as climate pressures increase.
Moreover, of the 100 new data centres planned across the UK, 60 are slated for London, adding further strain to the city's already overburdened resources.
The Greater London Authority's (GLA) assistant director for environment and energy, Megan Life, informed the London Assembly Environment Committee that City Hall is creating a new strategy to make sure the city “keeps hold of the kind of economic growth benefits that data centres offer” while resolving the “quite challenging” problems related to their energy requirements.
Likewise, Mete Coban, Deputy Mayor for the Environment, expressed similar concerns, describing data centres as both a source of “big benefits” and “massive challenges.” He cautioned that the environmental pressures caused by these facilities are not limited to London.
“It's not just a London problem; it's going to be a global problem,” he said, emphasising the importance of an equitable approach that prevents “a few global corporations” from extracting resources without paying back.

City Hall's renewed focus comes after warnings that data centre construction is undermining the mayor's climate goals. Several housing developments in west London have reportedly been halted due to data centres consuming all available electrical grid capacity.
Mayor Sadiq Khan has already commissioned a study to forecast future data centre growth and inform policy decisions. The London Assembly has also requested a standalone data centre policy in the next London Plan.
Furthermore, last month, Members of Parliament initiated an inquiry into the environmental impacts of data centres in the UK, following Energy Secretary Ed Miliband's statement that the effects of their rapid expansion on the country's net zero carbon emission goals are “inherently uncertain.”
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Posted On: March 5, 2026 at 09:49:50 PM
Last Update: March 5, 2026 at 09:49:50 PM
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