UK Prime Minister Rejects National Data Center Construction Moratorium, Backs AI Growth Zones

Responding in Parliament to a question from Ian Lavery, Prime Minister Andy Burnham said the government does not intend to impose a nationwide pause on data center development. The government instead continues to position AI Growth Zones as a mechanism through which host communities should receive further investment and increased local tax revenues.

The discussion concerned Blyth and Ashington, where Lavery said three large AI data centers are under construction. The available source does not independently provide project-level details for those facilities.

QTS, owned by Blackstone, is developing several large projects in the area. One cited plan would convert a former power-station site into a 720 MW AI data center, with planned total project costs of £10 billion. Both figures describe a proposed project, rather than commissioned capacity or capital already deployed. The source does not specify the project name, delivery timetable, permitting stage or power-supply status.

For the sector, the government’s stated position could provide a more supportive political backdrop for large AI data center development and related grid interconnections. That support remains conditional on the industry’s ability to demonstrate local economic value and manage concerns over electricity-system loading and water consumption.

Calls for restrictions or a ban have been supported by politicians from the Green Party, SNP and Scottish Green Party, citing electricity and water use among their concerns. While the Prime Minister rejected a national moratorium, the statement does not rule out local constraints, future policy changes or other regulatory requirements.