The planning committee of Hertsmere Borough Council in the UK has granted outline planning permission to the application for a new data centre in South Mimms, Hertfordshire.

This permission comes a week after the UK government announced the launch of the AI Opportunities Action Plan, which emphasises the role of data centres in AI-driven economic growth.

The new DC01UK facility is expected to become Europe's largest cloud and AI data centre by size upon completion and will span up to two million square feet. It is strategically located near the Elstree substation and key fibre optic routes.

The project is expected to address the country's current cloud services shortfall and future demand increases.

The data centre has proximity to the National Grid with a 400MVA power reservation and nearby Availability Zones.

Economic forecasts estimate the construction value of the data centre project at £3.75bn ($4.67bn), with an annual contribution of £21.4m in business rates upon becoming operational.

The project is anticipated to create 500 skilled jobs during the construction phase, 200 permanent positions post-construction, and an additional 10,900 indirect jobs.

It is also projected to contribute approximately £1.1bn per annum in gross value added (GVA) indirectly.

The planning application for DC01UK, lodged last September, featured in the UK Department of Science, Innovation and Technology's announcement, which reclassified data centres as 'Critical National Infrastructure'.

Hertsmere Borough Council leader, councillor, and chair of the Hertfordshire Growth Board Jeremy Newmark said: “This is a momentous development for our borough. Hertsmere has cleared the way to becoming the home of a data centre which will be integral to serving Britain with cutting-edge technology. It’ll be a piece of critical national infrastructure needed for many generations to come.

“The project, which is aligned with the council’s vision, is set to deliver hugely significant growth and economic benefits for the area, creating jobs during and after the construction phase, as well as new businesses.

“While outline planning permission has been granted, we will, of course, continue to listen to and engage with residents about these exciting plans as more details are firmed up.”