The DCA's report, published Wednesday, identifies a structural misalignment between the planning, energy and industrial policy frameworks governing digital infrastructure in the UK. It argues that compute capacity is the physical foundation beneath every AI workload and that the current pace of construction risks lagging behind national ambition.
"Every model trained, every inference workload deployed and every AI-enabled service delivered depends on electricity supply, substations, planning consent, cooling systems, fibre connectivity and long-lead engineering capacity," said Venessa Moffat, Managing Director of the DCA. "AI is not solely a software challenge. It is an infrastructure challenge."
The report makes four recommendations to government. First, it calls for distinct energy policy categories for different types of digital infrastructure, arguing that treating all data centres as equivalent distorts planning and network investment decisions. Second, it asks for electricity pricing structures that keep the UK competitive with international markets, particularly as other jurisdictions offer targeted incentives to attract large-scale compute investment. Third, it proposes redesigning AI Growth Zones as integrated delivery frameworks — combining planning, power and connectivity coordination — rather than geographic investment designations. Fourth, it calls for local planning authorities to receive dedicated technical support so data centre applications are assessed consistently.
The DCA notes that the existing pipeline of capacity in the London market is substantial, but warns that the current window will not stay open indefinitely. Over the next twelve to eighteen months, the report says, increasing supply, evolving power constraints and shifting competitive dynamics are expected to alter the market — creating a narrowing opportunity for the UK to consolidate its position.
The departments responsible for digital policy, energy security and planning — DSIT, DESNZ and MHCLG — are the report's primary audience. The DCA's core argument is that the UK's AI Opportunities Action Plan and Compute Roadmap will not deliver on their targets unless infrastructure delivery timelines and national AI ambition are tracked against the same framework.
The DCA has represented the UK data centre sector since 2010.
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