Datacentre developers tout benefits to local communities, but do they deliver?

Can datacentres deliver local benefits?

In Southall, home to a large South Asian community and a significant number of small to medium-sized enterprises, businesses have faced challenges due to rising rents and a decrease in industrial estate capacity. The growing AI datacentre industry – along with other large players such as film studios – is one reason for this, according to a study from Ealing Council in 2022, which noted that “strong demand” for industrial space “could displace small businesses”.

Rent for industrial estates has risen “to a stupid level”, says Saran, making it untenable for transport and logistics companies such as his to stay where they are and close to their customer base. “Local businesses are being pushed out, 15 to 30 miles away,” he says, which he predicts will lead to price increases for customers. “The only way we could possibly grow is by leaving west London altogether. If I do relocate, most of my staff will leave,” he adds. 

As a gesture to businesses affected by its development at the industrial estate in Southall, the developer, GTR – backed by private equity firm KKR – has agreed to provide £750,000 towards a “local economy management plan”. This plan is part of a larger agreement called an S106, which is a legally binding contract between a developer and a local planning authority, used to mitigate the impact of a new development on the local area. The agreement also involves the developer committing additional sums in the tens of millions towards training, education and infrastructure improvements in Southall.

According to John Booth, managing director of sustainability-focused IT consultancy Carbon3IT, the implied function of these community benefits agreements is clear: they can be seen as a “bribe” to help “get a project over the line”.

Agreements aim to mitigate local impact

The scope of such an agreement can be broad, although it must be tied in some way to the nature of the development. Agreed-upon benefits can range from money for training and education, to revamped local parks, healthcare and infrastructure.

The plan for the datacentre in Southall aims to “address potential disruption arising from the loss of traditional industrial units” by “assisting affected businesses” and providing “support for business relocations to minimise economic disruption”.

Computer Weekly spoke with six businesses on Saran’s old estate, which said they had been adversely affected by the development. They claimed they had not received the support they needed, and that they had not heard of a plan to help “affected businesses”.

Some companies said they had lost business as a result of the move, and several said they were struggling to find an affordable site to move to. Two businesses said they had been evicted after struggling to move, with one – metalworks firm Makson’s – being asked to pay £1,800 plus VAT per day for a security guard to let them in to get their belongings back, as well as legal costs of £1,750 plus VAT (halved from £3,500 plus VAT, as a gesture of goodwill).

GTR told Computer Weekly that Ealing Council was responsible for managing and delivering the plan to help affected businesses. Ealing Council did not respond to questions from Computer Weekly.

“The GTR team has worked closely with all tenants throughout the process, and we continue to assist those who remain on site. Supporting tenants effectively [and] efficiently is a priority for us, and a professional commitment that we take very seriously,” said GTR founder and CEO Franek Sodzawiczny in an emailed comment.

Why community engagement makes commercial sense

As people globally have pushed back against datacentre developments, engaging with communities has become a commercial decision, according to industry experts. 

Corporations are considering their interactions with communities more carefully, with a focus on messaging. In the US, Big Tech has spent a lot on advertising to help the image of datacentres.

In some instances, corporations have taken a more outwardly aggressive tack. At the end of January, the chief executives of American datacentre company Digital Realty, Blackstone-owned datacentre operator QTS and Japanese IT services company NTT Data announced that their companies would go “on the offensive” around datacentres.

“We stand on the foundation that we’re doing the right things in these communities,” said co-chief executive of QTS, Tag Greason, quoted in the Financial Times. “Going a little bit on the offensive is part of the plan for a number of us because the opposition is definitely on the offensive.”

But others – including OpenAI and Microsoft – see value in a more cuddly approach. In January, Microsoft announced its intention to build “community-first AI infrastructure”. That move came after the corporation was compelled to axe a datacentre development in Wisconsin in October 2025 after local protests. A few days later, OpenAI announced its developments would be “locally tailored” for each site and “driven by community input and local concerns”.

There are practical reasons to focus on community benefits, according to Venessa Moffat, executive director of UK industry body the Datacentre Alliance. “Structured community partnerships reduce organised opposition and cut planning delays” that could cost a developer tens of millions, wrote Moffat in a document shared with Computer Weekly.

Benefits vary widely across the UK

The UK has seen its share of opposition to datacentres, in the form of council refusals, protests and an ongoing legal case that objects to the lack of an environmental impact assessment.

In Hertfordshire village Abbots Langley, a controversial datacentre by developer Greystoke was given a green light by the government after the local council initially rejected it. Despite having been “deeply disappointed” when the development was pushed through, local council leader Stephen Giles-Medhurst seemed optimistic when he spoke to Computer Weekly in January. 

“We all realised the chances of getting this refused were zero,” he said. “We have to move with the times.” Developer Greystoke was “receptive and open”, according to Giles-Medhurst, who added: “If we can get this right, we can get some real tangible benefits for the community.”

The benefits at Abbots Langley include a nature reserve and around £12m towards a local training and skills fund. Approximately £105,000 more will go to development-related sustainable transport. There are also plans for infrastructure to channel waste heat to a nearby housing development. The council is still in talks with the developer to negotiate further benefits, said Giles-Medhurst.

In the UK, the benefits a datacentre can bring to an area vary widely and can depend on the negotiating power of the council and the willingness of the developer to comply. Although this is the first datacentre to be built in Abbots Langley, Giles-Medhurst cited the council’s experience with Warner Brothers, which has been in the area since 2010, as giving the council knowledge of what could be asked for. 

Developers often employ planning consultants. This can create “an imbalance of power” due to the complicated nature of the negotiations, said Kath Scanlon, distinguished policy fellow at the London School of Economics and deputy director at LSE London, an urban research group. 

Negotiating leverage can also depend on site and location, said Scanlon. Land that is particularly valuable, such as in London and the South-East, gives the council more clout to get funding.

As a result, some agreements show a variety of benefits with higher sums involved, while others are more limited in their contributions.

For example, the GTR development in Southall has allocated a minimum of £20m in its community benefits agreement for highway improvement, air quality mitigation, carbon offsetting, employment and training, cycle infrastructure, bus services and street improvement, as well as an improvement to a bridge.

Meanwhile, the West London Technology Park development in Iver, Buckinghamshire, by Greystoke is set to receive £5m towards air quality mitigation. The development is the subject of a legal case that raises objections to the lack of an environmental impact assessment. The council had rejected two planning applications since 2022, but the appeal by Greystoke against the second of these was “recovered” by the newly installed Labour government in mid-2025. 

As a result, benefit negotiations were overseen by the Planning Inspectorate rather than the council. 

Nscale’s AI Campus in Loughton

There are other developments without this type of benefit agreement. These include Nscale’s Loughton AI Campus and the Cobalt Park development in Newcastle, associated with OpenAI. 

When asked, a spokesperson for Nscale said the application had been made by a different company, and Nscale took it over with planning terms already in place. The spokesperson said Epping Forest Council had “opted to secure all requirements via 21 planning conditions rather than an S106 agreement”. 

“Nscale was not a party to those original discussions, but as the new operator, we are fully committed to complying with all 21 conditions – including infrastructure and environmental safeguards,” said the spokesperson. 

For Cobalt Park, developer Highbridge Properties, North Tyneside Council and OpenAI did not respond to questions about why an S106 wasn’t required. 

Others involve large sums that aren’t mentioned in an S106. Investment management company Blackstone announced a development in Blyth, Northumberland, that included £110m to be put towards “long-term investment in growth and employment opportunities” in the region, but it wasn’t included in the development’s benefits agreement.

Why some perks are controversial

Meanwhile, some negotiated benefits have caused controversy. In a community feedback document from Greystoke’s Abbots Langley application, residents expressed derision about the proposed nature reserve. 

“The communities of Abbots Langley and Bedmond can already access and walk among the existing green belt land via local footpaths,” wrote one resident. “Therefore, the ‘country park’ being put forward as a so-called benefit by the developers does not offer any gain and brings no additional benefit for local people or the environment.” 

Another local resident wrote that the reserve’s location is “somewhat remote from the local population and with poor vehicular access”. 

Another commenter accused the developers of seeking “to bribe local people with the idea of a country park”, adding: “This insults our intelligence. They would be giving us nothing.”

Council leader Giles-Medhurst acknowledged this view, but said it was “part of the planning permission”.

Can datacentres deliver on jobs?

Another widely advertised benefit that has caused controversy is jobs. The creation of thousands of jobs is often advertised as part of a datacentre’s benefits, but reporting has shown that most of these are short-term construction jobs.

“I don’t think it’s a plausible way to address growth at the whole economy level,” says economist and former Labour party adviser James Meadway, speaking of AI datacentre developments, claiming datacentres are “not going to create [many] jobs”. 

In Southall, some businesses from the industrial estate are still waiting to be served their notice to vacate, while others continue to search for other sites and deal with the disruption to their businesses. 

“This situation has affected our live projects, staff livelihoods and the families that depend on their income for living, [as well as] the overall business,” said director and co-owner of Makson’s, Pritesh Makwana.