The UK government has reportedly put pressure on local council officials to push through a “supercomputer” data centre being co-developed by Microsoft and Nscale.

First reported by The Telegraph, Epping Forest district council was urged by Lord Stockwood, Minister for Investment, to back the giant AI data centre. Lord Stockwood reportedly wrote to the council’s chief executive Andrew Small – a move that is considered highly unusual – in November, to “emphasise our strong support” for the project, according to planning documents.

“You will be aware that this project was announced by the Prime Minister during the recent US state visit, underscoring its importance to UK-US technological partnership and our shared commitment to advancing AI capabilities,” he wrote, as reported by The Telegraph. “This Government is keen to see the successful delivery of this site, which exemplifies our determination to position the UK as a global leader in digital technologies.”

Epping Forest district council gave planning permission for the site last month, despite objections from councillors, local committees and residents. Nscale had previously secured planning permission for a data centre on the site, a scaffolding yard, but wanted permission to upgrade the plans to make the building larger and its data centre more powerful.

The site was also part of a report from The Guardian as evidence of phantom data centre investments – upcoming facilities that may not actually have real financial backing yet.

Nscale’s proposal had been opposed by the local town council, which raised concerns about local water and power supplies, the council’s landscapes and urban design teams.

According to The Telegraph, the officers that approved the data centre noted Lord Stockwood’s letter when giving permission, stating that data centres are now considered to be critical infrastructure of national importance.

Indeed, the UK government has a clear goal to become a global AI leader and has relaxed some data centre planning laws in order to facilitate faster construction of sites like the one in Essex. Last week, a site in Kent was approved where local councillors were bypassed.

There is a growing trend of communities objecting to data centres being developed in their local area. This is coupled with growing distaste for AI and AI data centres online, with the public arguing these facilities guzzle local resources and aren’t built with the community in mind.

This morning, the Local Government Association said via an online statement: “Data centres and AI infrastructure cannot be planned in isolation from wider digital connectivity, energy, water, land use and climate systems.”

It added: “Councils must be treated as key partners in the design and delivery of national digital strategies, including AI Growth Zones, planning reform and infrastructure investment.”

Nscale’s Loughton data centre site was expected to be operational this year but has been delayed until 2027. It is expected to host thousands of Nvidia chips. Nscale reportedly remains committed to the project.

The site was announced by outgoing UK Prime Minister Sir Keir Starmer as part of a US$30 billion (£22 billion) plan for Microsoft to use the site. It was confirmed last year during US President Donald Trump’s state visit in September 2025.

Nscale is a fast-growing private data centre company that is currently valued at around $15 billion, making it one of the UK’s most valued AI start-up companies. Sir Nick Clegg, former deputy Prime Minister to the UK and ex-Meta executive, joined the company’s board in March.

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