A planning application has been submitted for the construction of a £3.75bn data centre in Hertfordshire.

Developer DC01UK says the site in Hertsmere would support at least 500 jobs during the construction phase.

It would be one of the largest data centre campuses in Europe, catering for up to two million square feet of floor space, set in the grounds of 85 acres adjacent to the A1 and M25, just east of South Mimms Services.

Industry leaders have forecast demand for data centres is expected to rise by 53% with the increase in the use of AI, cloud computing, storage, and data-heavy services like video streaming.

DC01UK says the scale of the project is currently unrivalled in the UK, with the site already having a power reservation of 400MVA from National Grid (likely the UK’s largest pre-2030 power reservation) enabled by its proximity to the Elstree (Letchmore Heath) substation.

The location is also close to the UK’s national and international fibre optic routes and sits nearby to the established and emerging Availability Zones in the region.

DC01UK could be operational in 2029 with economic benefits being felt nationally and locally from the construction phase onwards.

Once operational the site would support at least 200 new, permanent, local jobs. Additionally, DC01UK is likely to generate approximately £1.1bn per annum GVA indirectly per year, as well as create 13,700 new job opportunities throughout the UK across numerous sectors.

A spokesperson for DC01UK said: “The ambition for this project is to build the next generation of national digital infrastructure to power the needs of tomorrow.

“DC01UK is a unique and world-leading project. It will be the UK’s premier data centre, providing critical infrastructure for the UK’s future, generating approximately £3.75bn for the UK economy during the construction phase, and delivering huge economic benefits to the UK and brilliant opportunities for local people.

“This project would put Hertfordshire at the forefront of one of the most technologically exciting projects in Europe and lead the world in setting the gold-standard for the next generation of high-tech infrastructure.”

The news comes as the government today (12 September) announced data centres powering the economy will be put on the same critical footing as energy and water systems, bolstering security and resilience and boosting industry’s confidence in the UK ecosystem.

Technology Secretary, Peter Kyle, said the government has now classed UK data centres – the buildings which store much of the data generated in the UK – as Critical National Infrastructure.

This designation will allow government to support the sector in the event of critical incidents, minimising impact on lives and livelihoods.

It is the first Critical National Infrastructure (CNI) designation in almost a decade, since the space and defence sectors gained the same status in 2015.

The new protections will also boost business confidence in investing in data centres in the country, an industry which already generates an estimated £4.6bn in revenues a year.

CNI designation will, for example, see the setting up of a dedicated CNI data infrastructure team of senior government officials who will monitor and anticipate potential threats, provide prioritised access to security agencies including the National Cyber Security Centre, and coordinate access to emergency services should an incident occur.

Technology Secretary Peter Kyle welcomed DC01UK's announcement and said: “Data centres play an essential role in British society, housing some of our most important data from vital NHS records to sensitive financial information.

“This huge £3.75bn proposed investment is a vote of confidence in our plans to support the sector to thrive, ensuring everyone across society can feel the economic benefits of its growth.

“To achieve this, we must make the sector resilient to the challenges of today – from heatwaves to cyber attacks – which is why only today we have announced we will class data centres as ‘Critical National Infrastructure’, on par with energy supply systems.”

Councillor Jeremy Newmark, leader of Hertsmere Borough Council and chair of Hertfordshire Growth Board, added: “This is incredibly exciting news. It shows that Hertsmere is an extremely desirable location for business and is a natural base for the cutting-edge technology and critical infrastructure which will serve Britain in the coming years and for many future generations.

“The project is aligned with the council’s vision. It will be a major boost for our economic development, creative and climate change strategies.

"The prospective economic benefits are clear. A scheme like this will deliver significant growth for the area. It will create many new jobs, both during and after construction, and new businesses.

“Of course, the application is subject to the planning process during which we will, as always, listen and speak to residents about the plans, and a public consultation on the proposals will be held for people to give their views. I am certain that local people will realise the benefits of the scheme. It has my full support.”

The news comes a day after chancellor Rachel Reeves announced a planned £8bn investment from Amazon Web Services.

The five-year investment is estimated to support around 14,000 jobs per year at local businesses, including those across the company’s data centre supply chain such as construction, facility maintenance, engineering and telecommunications, as well as well as other jobs within the broader local economy.

AWS – Amazon’s cloud computing arm - estimates that these investments in the UK will contribute £14bn to the UK’s total GDP from 2024 to 2028.

Speaking from a University Technical College in Silverstone yesterday, which works with Amazon Web Services to introduce students to the skills required to enter the digital infrastructure industry, chancellor Rachel Reeves said: "I am under no illusion to the scale of the challenge facing our economy and I will be honest with the British people that change will not happen overnight.

“Two quarters of positive economic growth does not make up for 14 years of stagnation under the previous government.

“However, this £8bn investment marks the start of the economic revival and shows Britain is a place to do business.

“I am determined to go further so we can deliver on our mandate to create jobs, unlock investment and make every part of Britain better off. The hard work to fix the foundations of our economy has only just begun.”

Amazon Web Services vice president and managing director, Europe, Middle East and Africa (EMEA), Tanuja Randery, said: “The next few years could be among the most pivotal for the UK’s digital and economic future, as organisations of all sizes across the country increasingly embrace technologies like cloud computing and AI to help them accelerate innovation, increase productivity, and compete on the global stage.

“AWS is proud to announce our plans to invest £8bn in digital and AI infrastructure over the next five years to help meet the growing needs of our customers and partners and support the transformation of the UK’s digital economy.