Labour must stop 'rolling out red carpet' for Big Tech building AI centre in Britain, MPs urge

Ministers must stop “rolling out the red carpet” for big tech and halt the growth of data centres until they can prove they will not damage the environment or drive up energy bills, MPs will be told tomorrow.

The demand will be made to Parliament's Environmental Audit Committee – the cross-party group which scrutinises the environmental impact of Government policy – as it launches an inquiry into the sustainability of Britain's fast-growing data centre industry.

Campaigners will warn the UK risks sleepwalking into a vast expansion of energy-hungry AI infrastructure, hindering climate targets and placing communities at risk of harm.

The call follows recent estimates proposed data centres could rival Britain's peak electricity demand, pushing up energy costs for the population and posing a "serious threat" to efforts to decarbonise the UK's electricity grid.

Oliver Hayes, Head of Campaigns at Global Action Plan, who is due to give evidence to MPs tomorrow, is among those who will call for a moratorium on new hyperscale data centres until key environmental questions have been answered.

He has accused Labour officials of "rolling out the red carpet for big tech" despite fears a wave of giant AI-powered developments could consume vast amounts of electricity, place pressure on water supplies and leave the public footing the environmental bill.

Mr Hayes said: "They are rolling out the red carpet for big tech who seem to be able to build as many as they like and when local councils object they have been overruled."

Campaigners want developers to be compelled to bring forward enough new renewable energy generation and storage to power their own facilities rather than drawing electricity away from the wider economy.

They argue unless companies can demonstrate where their power will come from, data centres risk “cannibalising” energy needed by households and businesses while also making it harder for Britain to meet its climate commitments and pushing up energy costs.

Donald Campbell, Advocacy Director at Foxglove, a technology and digital rights campaign group, said: "Data centres are hugely resource-intensive, especially the hyperscale data centres which are driven by big tech in the AI frenzy. This will blow out Britain's Net Zero targets. The Government hasn't accounted properly for how this will fit into its carbon budget."

The warning is driven by the extraordinary scale of projects now seeking approval.

Figures from Ofgem and the National Energy System Operator suggest around 140 data centre projects are currently seeking grid connections with a combined demand of roughly 50 gigawatts. This is more than Britain's current peak electricity demand of around 45 gigawatts. Around 20 gigawatts of that demand are already financially committed.

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Campaigners fear even if only a fraction of the schemes are built, they could still place enormous pressure on the electricity network, pushing up energy prices and making it hard for Britain to meet its legally binding climate targets.

Mr Campbell said: "The number of data centres seeking to connect to the grid is the equivalent to Britain's peak electricity demand."

Warning about the size of individual developments, he added: "One of the largest is in Elsham in North Lincolnshire. It uses one gigawatt of electricity, the equivalent to a gas-fired or nuclear power station."

The cross-parliamentary committee is expected to examine whether data centre growth can be delivered sustainably, how much pressure the facilities could place on the national grid and water resources, and what role local communities should have in decisions over developments in their area.

Water use is expected to be a major focus. Many hyperscale facilities rely on water-based cooling systems to stop powerful AI chips from overheating, with some consuming millions of litres of water every day.

Campaigners say developers should be required to disclose how much water proposed facilities will use, particularly in areas already facing water stress and increasing drought risks.

They are also calling for greater transparency over chemicals used in cooling systems, including concerns about "forever chemicals", linked to health risks, as well as how such substances are stored, treated and disposed of.

Mr Hayes is expected to argue the public cannot have a meaningful debate about the costs and benefits of data centres without far greater transparency about water use, environmental impacts and chemical management.

The intervention comes amid growing backlash against major developments across Britain.

Opposition is intensifying in Fife over plans for a huge hyperscale data centre near the village of Auchtertool, while campaigners in Essex, London and other parts of the country have also voiced concerns over energy use, water consumption, noise and environmental impacts.

Critics also question why some of the world's richest technology firms can receive cut-price power while households continue to face high energy bills.

Under Government plans for AI growth zones, qualifying data centres could receive electricity discounts worth up to £24 per megawatt hour in Scotland, £16 per megawatt hour in Cumbria and £14 per megawatt hour in the Northeast.

Campaigners are also alarmed by evidence that some developments could increase reliance on fossil fuels.

Planning documents for a major proposed data centre campus in Buckinghamshire include plans for an on-site gas turbine energy centre capable of generating up to 350MW of power.

The environmental groups also point to Google's proposed Essex data centre, which planning documents suggest could generate more than half a million tonnes of carbon dioxide emissions every year during operation.

Earlier this year, a coalition including Friends of the Earth, Foxglove, Global Justice Now, Global Action Plan, Opportunity Green and The Green Web Foundation wrote to Science Secretary Liz Kendall, warning proposed data centres could ultimately rival Britain's peak electricity demand and pose a "serious threat" to efforts to decarbonise Britain's electricity grid.

Separate research has also identified a "data heat island" effect, with some studies suggesting large data centres can raise surrounding temperatures by as much as 9C.

The Government has been approached for comment.

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