AI firms urge UK government to act within 12 months to prevent data center protests: Report

By Aysu Bicer

LONDON (AA) - Major technology companies have urged the UK government to address growing public opposition to data center construction within 12 months, warning that protests similar to those in the US could threaten projects.

A submission to the Labour government by the Sovereign AI Leadership task force, which includes Nvidia, Microsoft and Cisco, warned that concerns over energy bills, water use and environmental impacts were fueling opposition, the Guardian reported Thursday.

“Britain has a window – we think of roughly 12 months – to build a compact that earns public consent before that pattern takes hold,” the taskforce said.

The group called for a framework setting out how local communities could benefit from hosting data centers, including financial contributions and allowing councils to keep more commercial property tax revenue.

It cited US cases where organized opposition had halted projects that already had planning approval, as well as moratoriums on data center construction in some states.

“Reporting from those places shows that AI itself is only a surface-level concern; distrust of corporate and government promises, fear of stranded assets and electricity costs run deeper. The same arguments have begun to appear here,” the submission said.

Microsoft has pledged to invest $30 billion in UK AI infrastructure. It has built a data center in Acton, London, and is constructing another in Newport, Wales.

Campaign groups, however, criticized proposals to offer financial incentives to local authorities that support data center developments.

“People are going to feel it is undignified to be bought off by huge tech companies who do not share their interests,” Joseph Miller, director of PauseAI UK, told Guardian.

Kat Jones, director of Action to Protect Rural Scotland, added that 15 community campaigns were opposing data center developments in Scotland, alongside a growing national campaign.

Donald Campbell, director of advocacy at Foxglove, warned that allowing councils to keep more tax revenue from data centers could leave less money for centrally funded services, including the National Health Service, the newspaper reported.

A government spokesperson, quoted in the report, said data centers should create British jobs, support domestic supply chains and invest in host communities while prioritizing clean power and responsible water use.

“For most proposed datacentre developments, community benefits are considered through the relevant local planning processes,” the spokesperson said. “We have already announced measures which will enable local authorities hosting datacentres in AI growth zones in England to keep all the additional business rates they generate.”

Aysu Biçer