Outline approval granted for £10bn AI data centre campus in North Lincolnshire

Outline planning approval has been granted for Elsham Tech Park, a major AI-focused data centre campus in North Lincolnshire that could see more than £10 billion of investment as it is built out.

Located adjacent to Elsham Wolds Industrial Estate, the development forms part of a plan to establish a network of AI data centre campuses across the proposed Northern Lincolnshire AI Growth Zone, positioning the region as a hub for digital infrastructure and artificial intelligence.

The scheme is intended to deliver significant new data centre capacity to support AI training and processing, responding to growing demand for high-performance computing infrastructure across the UK.

Construction is expected to begin in 2027, with the first phase of the campus scheduled to become operational in 2029. The development will be delivered at scale, with substantial infrastructure requirements including energy provision, transport improvements and on-site facilities.

The project will also require major construction inputs, including more than 100,000 tonnes of steel, with developers indicating a preference for sourcing materials through UK supply chains. The campus is aligned with the UK Steel Charter, supporting domestic manufacturing, including production at nearby Scunthorpe.

Sustainability measures form a core component of the scheme, with proposals including closed-loop water cooling systems designed to minimise consumption, alongside biodiversity enhancements across the site. The development is also expected to contribute to the decarbonisation of the Humber Industrial Cluster through integration with emerging green energy infrastructure.

In making the recommendation, the council noted that: "The loss of agricultural land is noted but mitigated through the inclusion of on-site food production via district-heated greenhouses, supporting food security and a circular economy. The scheme also aligns with regional decarbonisation efforts and offers scope for future innovation and skills growth, including a potential AI accelerator. Overall, recommend the proposal for approval, subject to appropriate controls and ongoing collaboration to maximise local benefit."

Highways and transport upgrades are also planned to support the scale of the development and improve connectivity to the surrounding area. The project is expected to create a significant number of operational roles once complete, alongside wider supply chain opportunities during construction and delivery.

The approval marks a key step in advancing large-scale data centre development in the UK, as demand for AI and digital infrastructure continues to reshape the requirements of industrial and energy-linked real estate.