UK Datacenter Oversight Split Across Three Government Departments

Building a datacenter in the United Kingdom involves responsibilities split across three separate government departments. Following the decision to abolish the Department for Science, Innovation and Technology, liaison with the tech industry on datacenter construction fell to the Department for Business, Innovation, Science and Trade. The Department for Energy and Net Zero is responsible for providing power to datacenters. Planning permission for these facilities rests with local government, while the overall policy for planning lies with the Ministry of Housing, Communities and Local Government.

Liz Lloyd, parliamentary under-secretary of state, works across both the Department for Business, Innovation, Science and Trade and the Department for Digital, Culture, Media and Sport. According to Lloyd, telecom responsibilities sit with the Department for Digital, Culture, Media and Sport, while datacenter responsibilities sit with the Department for Business, Innovation, Science and Trade. This division of duties creates a complex administrative landscape for companies seeking to expand infrastructure in the region.

Microsoft pulled out of plans for Britain's largest AI supercomputer earlier this month due to difficulties securing power. The government claimed in January 2025 that modernizing technology could deliver £45 billion in productivity savings. A press release under the Starmer government stated that taxpayer-funded services were missing out on this amount due to outdated technology. Liz Lloyd stated that the £45 billion figure was never a target or a cashable savings figure.