Two data center projects in London’s Green Belt initially rejected by planners could now be given the go-ahead, chancellor Rachel Reeves has said.

The data center campuses in Iver, Surrey, and Abbots Langley, Hertfordshire, were both proposed by Greystoke Land, but rejected by local authority planning committees.

But Reeves, who was appointed chancellor following the Labour Party’s victory in last week’s UK general election, said these decisions would be reviewed. The new government has said it will push through planning reform to make it easier to build homes and critical infrastructure, including data centers, in the UK.

In her first major speech as chancellor, on Monday, Reeves said: "The deputy prime minister [Angela Rayner] has said that when she intervenes in the economic planning system, the benefit of development will be a central consideration and that she will not hesitate to review an application where the potential gain for the regional and national economies warrant it," she said.

"And I welcome her decision to recover two planning appeals already, for data centers in Buckinghamshire and in Hertfordshire.”

A spokesperson for the UK Planning Inspectorate confirmed to DCD that the chancellor was referring to the pair of Greystoke Land developments.

Data center proposed for ex-landfill site

Greystoke’s original plan for Iver would have seen 163,000 sqm (1.75 million sq ft) of data center floorspace built across three 243,600 sq ft buildings on land near the M25 at a site known as the West London Technology Park.

A former landfill site, the developer said it would provide 150MW of capacity, and included 171 backup diesel generators, each with 2MW capacity.

However, Buckinghamshire Council rejected the plan in September 2022, and though the company appealed the decision, Secretary of State Michael Gove dismissed this appeal in October 2023.

Greystoke director Anthony Crean criticized this move, saying the green belt, a natural buffer that exists between urban and countryside areas, is a “theological” concept which blocks developments in areas he believes are suitable for facilities like data centers.

Abbot's Langley plan revisited despite local concerns

The company ran into similar difficulties in Hertfordshire, where it proposed a two-building campus totaling 84,000 sqm (904,170 sq ft) of data center space at a site on Bedmond Road, near Abbots Langley. The facility, close to the M25 motorway, would also feature ancillary offices, internal plant and equipment, emergency backup generators, and associated fuel storage.

But in January, councilors on the Three Rivers District Council planning committee rejected the proposals after considering a report from planning officers recommending denial.

Officers said that the site did not meet the stringent criteria required to build on the green belt, and voiced environmental concerns about the size of the project, saying it would “result in significant demonstrable harm to the character and appearance of the area and the natural environment.”

The developer was also criticized for not making a formal commitment to improving nearby walking and cycling routes.

A Greystoke spokesperson said at the time of the decision: “We appreciate councilors and officials have a very difficult job to do, but we are disappointed by this decision.

“The UK needs large data centers to support economic growth and digital leadership. Building one here in Abbots Langley will bring hundreds of well-paid jobs to the area, £12m ($15.3m) investment in education and training, and a new country park.

“Failing to build here will mean employers and investors will look to Frankfurt, Amsterdam, and Paris instead.”

DCD has contacted Greystoke Land, as well as Buckinghamshire and Three Rivers councils for their reaction to the chancellor’s comments.