The UK government is considering a new "covenant" requiring data centre developers to invest locally to address public opposition to AI infrastructure. The proposed framework would include conditions such as sustainability requirements and energy use agreements, potentially in exchange for priority grid access or accelerated planning approval. AI minister Kanishka Narayan, appointed by Prime Minister Andy Burnham in July, aims to ensure British control over AI development and prevent foreign firms from dominating. The UK plans to triple its computing capacity to 6GW by 2030. Similar measures are being explored in Australia, Malaysia, and US states, which have used tax breaks and grid access incentives. The government seeks to balance public concern with necessary infrastructure for AI adoption, avoiding a backlash similar to the $200bn of US data centre delays last year. Officials stress that local communities must benefit from AI investments, with potential revenue sharing through designated "AI Growth Zones" across the country.
Ministers are working to shape a clear statement on what good digital infrastructure development looks like, outlining the trade-off for areas where data centres are built. The proposed conditions could take the form of direct cash contributions or infrastructure investments. The move follows concerns that without such frameworks, the UK risks a wave of opposition to AI data centre projects, mirroring challenges seen in other regions. The covenant represents a strategic effort to harness AI growth while ensuring local benefits and environmental sustainability.
Source: Financial Times Companies · Summarized by HeadlinesBriefing