UK approves £7.5bn AI data centre campus in Lincolnshire
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Plans for what could become the UK’s largest artificial intelligence data centre campus have received outline planning approval in North Lincolnshire, marking a major step forward for the country’s digital infrastructure ambitions.
The proposed Elsham Tech Park development will transform the former RAF Elsham Wolds airfield near Scunthorpe into a hyperscale data centre campus designed to support the rapid expansion of artificial intelligence and cloud computing.
The project is expected to cost around £7.5bn and would deliver more than 1.5 million square metres of hyperscale floorspace. Once complete, the campus will include 15 data halls designed to support an estimated 1,000MW of IT load, placing it among the largest digital infrastructure projects ever proposed in the UK.
Developers say the scale of the facility reflects the accelerating demand for computing capacity driven by artificial intelligence, advanced data analytics and global cloud services. As companies invest heavily in AI technologies, demand for hyperscale data centres has surged across Europe.
If delivered, the scheme would position Lincolnshire as a significant hub for the UK’s expanding data centre industry and strengthen the country’s ability to host large scale AI infrastructure.
The project is being promoted by Elsham Tech Park Ltd, a company established specifically for the development and overseen by infrastructure and planning specialist Greystoke.
Construction is currently expected to begin in 2027, with the first phase of the campus scheduled to open in 2029.
Hyperscale infrastructure designed for AI growth
The proposed campus will cover approximately 176 hectares and has been designed as a large scale technology and energy hub.
At its core will be 15 individual development zones, each capable of being delivered independently. The buildings will range between 7 metres and 23 metres in height and will be connected by a central spine road running across the site.
Developers say the layout allows flexibility in the construction programme while ensuring the campus can scale as demand for computing capacity increases.
The site will also feature significant supporting infrastructure including substations, battery energy storage facilities and an on site energy centre capable of generating up to 49.9MW.
Data centres require significant power and cooling capacity to support large server clusters. The project’s energy infrastructure will therefore be designed to manage high electricity demand while maintaining operational resilience.
Cost estimates based on 2025 prices show that electrical systems will represent the largest share of the project’s budget, accounting for around 45 percent of total capital expenditure.
Mechanical systems including cooling equipment will account for approximately 21 percent of costs, reflecting the critical role temperature control plays in maintaining data centre operations.
The remainder of the budget will be divided between building shells, fire suppression systems and internal fit out.
Reusing heat from data centres for agriculture
A notable feature of the Elsham Tech Park proposal is the integration of energy intensive greenhouse agriculture into the wider development.
The masterplan includes areas where excess heat generated by servers could be reused to support large scale greenhouse food production. Data centres generate significant amounts of heat during operation, and repurposing this energy is increasingly being explored as a way to improve sustainability.
By linking computing infrastructure with controlled environment agriculture, the project aims to create a more efficient use of energy while supporting local food production.
The wider landscape strategy also includes substantial screening measures to reduce the visual impact of the development. Landscape bunds of up to 10 metres in height and extensive woodland planting belts will be installed around the site to shield the buildings from surrounding countryside.
The redevelopment of the former RAF airfield will therefore combine digital infrastructure with environmental mitigation and land reuse.
Construction jobs and long term economic impact
The development is expected to generate significant economic activity during its construction phase.
Developers estimate that the project’s ten year build programme could support between 2,600 and 3,600 full time equivalent construction jobs annually across both on site and off site roles.
This includes engineering, electrical installation, building construction and supply chain services linked to the project.
Large scale data centres typically require substantial investment in specialist infrastructure, which can support a wide range of contractors and technical suppliers throughout the construction period.
Once operational, the campus is expected to support long term employment in data centre operations, engineering maintenance and technology services.
Industry analysts increasingly view hyperscale data centres as critical national infrastructure as artificial intelligence and cloud computing become more central to modern economies.
With outline approval now secured, the Elsham Tech Park development could become one of the most significant digital infrastructure projects in the UK over the coming decade, reflecting the rapid growth of AI driven computing demand and the country’s ambition to expand its technology capacity.
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