Navigating UK and Ireland data centre development in 2026: Guidance for investors and operators

As we move into 2026, the UK and Irish data centre markets are no longer constrained primarily by capital or demand, but by delivery fundamentals.

Power availability, planning friction, and sustainability obligations now determine where, when, and how projects come forward, with clear implications for investors and operators navigating an increasingly cross-border landscape. Against that backdrop, the UK and Ireland remain critical hubs, but ones where early decisions and coordination across jurisdictions are becoming decisive.

In Ireland, where data centres place significant pressure on the national electricity grid, authorities introduced a new grid-connection regime for large energy users in late 2025. Under this framework, new data centre developments seeking grid connection must build generation or storage capacity, supply electricity to the wider market, and meet high renewable energy thresholds (targeting approximately 80% renewable generation over time).

In the UK, meanwhile, the government has secured parliamentary backing for regulations allowing major data centre developments to opt into the Nationally Significant Infrastructure Project (NSIP) regime, aiming to streamline planning approvals and better align data centre growth with energy infrastructure delivery. Together, these developments illustrate how each country is managing growth constraints. For operators, this environment demands proactive energy strategies and careful site selection; for investors, it necessitates recalibrating risk models around power availability, planning timelines, and sustainability obligations.

In practice, this is reshaping development strategies. Developers are pursuing private wire agreements, on-site generation (solar, wind, battery storage), and co-location arrangements with energy providers to guarantee supply. They're also targeting regions where power capacity is more readily available, whilst navigating constraints in hubs like London and Dublin. For investors, due diligence now centres on grid capacity, energy procurement contracts, and carbon credentials. A project with locked-in renewable power will command premium valuations and attract tenants faster than one dependent on uncertain grid access.

Where support is needed most

Securing power early

Grid connection timelines have become a critical bottleneck alongside planning approval processes. Developers must lock in capacity agreements with utilities at the outset, explore private wire and offtake arrangements to bypass congested public grids, and consider on-site generation or battery storage where grid access is uncertain. Energy procurement and co-location deals with power providers are increasingly becoming standard risk mitigation, especially for projects spanning multiple regions with different grid constraints.

Navigating cross-border regulation

International projects face country-specific planning rules, environmental consents, land rights processes, and grid access policies that vary significantly across markets. Understanding how the UK's planning regime can fast-track critical projects (through the NSIP process) versus how Ireland's connection requirements might cap project scale or impose additional energy obligations requires local expertise embedded early. Data protection, AI regulation, ESG reporting, and telecoms rules also differ by country. Missing these nuances can derail a project that looked sound on paper but hits legal or regulatory roadblocks on the ground. For example, a development that qualifies for NSIP fast-tracking in the UK may face entirely different timeline and capacity constraints when expanding to Ireland under the new grid-connection regime.

Maintaining speed-to-market

Time lost is revenue lost. Multi-site and cross-border developments can stall if legal and commercial processes aren't aligned to the pace of construction. Standardising modular build contracts, using fast-track document suites, and coordinating approvals across jurisdictions help keep projects on schedule. In practice, this means being as agile with contracts and compliance as the industry is with design and deployment – so facilities come online before market demand shifts or competitors catch up.

Building operational resilience and investment readiness

Once live, uptime and compliance are the true measures of success. Operators need robust SLAs with suppliers, strong continuity provisions in contracts, and tested incident response plans (from cyber breaches to power outages) to safeguard operations. At the same time, data centre assets should be structured for bankability from the outset with transaction-readiness audits identifying issues before due diligence, and documentation standardised across jurisdictions to appeal to international lenders and buyers. A centre that runs smoothly and sustainably is inherently more valuable when it comes to refinancing or sale.

Working with clients

We advise across the full data centre ecosystem, including developers, operators, investors, energy providers, contractors, and specialist suppliers. Our focus is on de-risking energy access, navigating cross-border regulatory pathways, and structuring projects for long-term resilience and investment appeal.

With teams in the UK and Ireland and a trusted international network, we coordinate multi-jurisdictional work through a single point of contact whilst delivering local expertise where it matters most: in planning negotiations, grid connection applications, and energy procurement agreements.

Looking ahead, cyber resilience obligations under the UK's forthcoming Cyber Security and Resilience Bill, alongside evolving water consumption reporting requirements, will add further layers to the regulatory landscape. The data centre market is being reshaped by power constraints, sustainability pressures, and global capital flows. Understanding these dynamics early – and structuring projects accordingly – is what separates successful developments from stalled ones. If you're navigating these challenges or exploring new opportunities in the UK, Ireland, or beyond, we'd welcome the conversation.