A planned surge in data centre construction across London could undermine the capital’s decarbonisation efforts, lawmakers have been warned.
Between 50 and 60 of roughly 100 proposed data centres in the national planning pipeline are currently slated for locations within Greater London.
Environmental groups estimate that every ten new data centres could generate up to 2.7 million tonnes of carbon emissions.
Those projections have prompted concerns that unchecked development could offset gains achieved through cleaner transport and energy initiatives.
“This is definitely undermining the process we’ve been making,” said Oliver Hayes, Head of Policy and Campaigns at Global Action Plan.
Hayes told the London Assembly that by 2050, data centres alone could consume a quarter of the UK’s current annual electricity usage.
He warned that just ten of the proposed facilities could negate emissions savings equivalent to a complete nationwide switch to electric vehicles.
Some developers are reportedly seeking permission to power data centres using onsite gas to speed up construction timelines.
Hayes said that approach would have “devastating consequences” for climate targets and worsen local air quality.
Backup diesel generators, commonly used to ensure uninterrupted operations, present additional environmental and health risks in dense urban areas.
Concerns were also raised about water usage, particularly in London and the South-East, regions already experiencing acute water stress.
Hayes said the boroughs facing the greatest pressure include Havering, Tower Hamlets, Newham, and Brent.
While existing data centres are relatively small, the new facilities under consideration would be significantly larger and more resource-intensive.
Lawmakers also highlighted growing grid capacity issues, with some housing developments already delayed due to electricity shortages.
“People can’t move into homes because there is no grid,” Hayes told the committee, underscoring competing infrastructure demands.
Environmental groups are urging the upcoming London Plan to include a dedicated data centre policy to manage long-term impacts.
Hayes warned that rising energy demand from data centres could ultimately push infrastructure upgrade costs onto household bill payers.
Every additional strain on the grid, he said, requires more investment in networks and renewable capacity.
“We are at a fork in the road,” Hayes said, stressing the urgency of intervention before long-lasting decisions are locked in.
Transparency and coordinated planning, he added, will be critical to balancing digital growth with climate and housing priorities.
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