The House of Commons Environmental Audit Committee has launched a new inquiry on environmental impacts of data centres in the UK, as Energy Secretary Ed Miliband says future energy demand from data centres “remains inherently uncertain”.

Amongst the issues the new inquiry - The risks and opportunities to the sustainability of data centres in the UK - will examine, will be how much energy and water data centres are likely to use, and how this could impact the Government’s net zero goals.

Data centres are regarded by ministers as being central to UK economic growth and were designated critical national infrastructure (CNI) in September 2024, offering them more legal protections.

However, their electricity consumption is expected to quadruple by 2030, according to the National Energy System Operator, raising concerns about their sustainability.

Announcing the inquiry, the Committee has also published a letter from Secretary of State for Energy Security Ed Miliband, responding to the EAC Chair’s concerns about data centres being omitted from the Government’s projections for the Seventh Carbon Budget (CB7).

In the letter, Mr Miliband says the government’s modelling for CB7 includes emissions from data centres but will also test “a range of trajectories”, given the uncertainty of future demand from data centres.

In their new inquiry, MPs will explore how growing AI use might accelerate the need for data centres and whether planning authorities will take account of their impact on the environment. They will also consider how new technologies could minimise their environmental impact and what lessons the UK could learn from other countries.

Launching the inquiry, EAC Chair Toby Perkins MP commented:

“Will data centres power the UK’s economic growth? Perhaps. But what kind of implications will they have for energy and the environment? How will they impact the already tortuous queues for grid connections and the Government’s plans to bring down energy bills? And what impact will their energy consumption and water usage have on the decarbonisation efforts and viability of other sectors?

“It’s critical that we really consider what the impacts of data centres will be before we charge into approving them en masse. Our inquiry will take a detailed look at the consequences of data centres for the local environment, including their water and energy use, and how the Government is taking account of their impact as they prepare plans for the next Carbon Budget. I encourage anyone with knowledge of this area to send in evidence.”

Terms of reference for the new inquiry are:

1.What current and future factors and trends are driving demand for data centres and what opportunities and challenges do they pose for the UK?

2. What are the environmental impacts of different types of data centre currently having in the UK and what are the future impacts likely to be?

ii. What are the potential short, medium and long-term projections of these impacts?

3. What impact are data centres having on climate change and the Government’s Net Zero targets and how will this change in the short, medium and long term in the UK?

4. To what extent will Artificial Intelligence (AI) accelerate the need for data centres and is this being adequately taken account of by the Government and relevant bodies, such as the Climate Change Committee and the Office for Environmental Protection, in terms of nature, the environment and climate change?

5. To what extent do existing policies, such as the Environmental Improvement Plan and the Planning and Infrastructure Act and associated policies, take account of the potential impact of data centres, particularly in terms of water use, nature and the environment?

i. How should the impact of data centres be factored into future policies, such as the Land Use Framework, regional planning, housebuilding and reform of the water sector?

ii. How important is the location of data centres and what factors should be considered for optimum siting of them?

6. Has the Climate Change Committee adequately taken account of the impact of data centres, especially in its advice on the Seventh Carbon Budget?

7. What existing and emerging technologies can be used to minimise the environmental and climate change impact of data centres?

i. How mature are these technologies and are they ready to be rolled out at the scale and pace required to match the potential expansion of data centres?

ii. What specific role can renewable energy play in reducing the carbon footprint of data centres?

8. What opportunities do data centres offer in helping to power and heat local communities and amenities and what will be required to deliver benefits?

9. Are there beneficial or precautionary lessons to learn from the impact of data centres outside the UK?

1o. To what extent will the resource demands of data centres impact on other sectors with regard to competition for resources and decarbonisation?

This inquiry is now accepting evidence and inviting submissions from anyone with answers to the questions in the call for evidence.

Deadline to submit evidence is Monday 6 April 2026 – click here to access the call for evidence