UK nuclear power planning reforms: updates, impact on data centres, and next steps

The recent planning reforms announced by the Government to boost nuclear power in England and Wales are set to have significant implications for various sectors, including data centres.

These reforms, which focus on expediting the construction of new nuclear power stations, particularly Small Modular Reactors (SMRs) and Advanced Modular Reactors (AMRs), whilst introducing a more flexible, criteria-based approach to site selection, could provide a more stable and sustainable energy supply for data centres and across the wider energy sector.

Background

The UK nuclear sector has struggled complete projects on time and budget, with Hinkley Point C being a recent example. The new planning reforms aim to address these issues by providing more flexibility and certainty to developers. The recently-released draft of the new National Policy Statement for Nuclear Energy Generation (EN-7) outlines significant changes in the planning and development of nuclear energy infrastructure.

This update is particularly relevant for data centres; data centres, as established within the new NPPF, are critical infrastructure for the digital economy, requiring a reliable and continuous power supply to ensure the uninterrupted operation of servers and other equipment. The energy demands of data centres are substantial and pose challenges in terms of sustainability and carbon emissions. The shift towards nuclear energy, facilitated by the new planning reforms, offers a potential solution to these challenges.

Proposed reforms

SMRs and AMRs

The commercialisation of SMRs and AMRs, which have shorter target construction periods in comparison with the GW-scale projects, will offer developers intending to apply for development consent the flexibility to deploy the right technology for their proposed usage and site. The Government’s messaging is that SMRs and AMRs have a significant potential role to play in supplying low carbon energy, both to the national electricity grid and to high-demand local users such as data centres, gigafactories, hydrogen and synthetic fuel production and/or industrial clusters. The Government has confirmed its commitment to working with the nuclear industry to realise this potential.

A Criteria-Based Approach to Site Selection

The previous National Policy Statement (EN-6) only considered specific sites that were identified to be potentially suitable for nuclear development by the end of 2025; these sites were then evaluated through specific criteria to assess if they were suitable – this was known as the Strategic Siting Assessment (SSA) process. 

In contrast, EN-7 will allow developers more freedom in choosing locations for new projects as the criteria for nuclear locations is to be published and can be used to identify sites, as opposed to being applied only to pre-identified locations. The criteria will cater for different nuclear technologies and project sizes, whilst assist developers in screening out unsuitable locations.

Through building upon the previous criteria set out in En-6, EN-7 provides a much clearer scope and focus to allow developers to identify new sites, with some examples of changes to the criteria as set out below:

• Population Density – EN-7 acknowledges that through the use of SMRs and AMRs, operational evidence may come to light that will modify the criteria limiting how close to densely populated areas nuclear sites can be developed; EN-6 did not provide for any future revisions to this criterion.
• Proximity to Military Activities – EN-7 retains this criterion which requires that the Secretary of State for Defence to be satisfied that the proposed infrastructure would not unacceptably affect defence interests but provides guidance on how developers can assess and address this to allow developers to make informed decisions; EN-6 did not provide any relevant guidance.
• Flood Risk and Coastal Processes - EN-7 updates the flood risk criterion to better address all flood risks, including coastal, lacustrine, and riverine (lacustrine and riverine processes were notably not addressed by EN-6). It also goes beyond the flood risk assessment required by EN-6 to require developers to demonstrate site resilience against worst-case climate scenarios throughout the lifetime of the proposed site. This allows for developers to fully assess the flood risks associated with locations from the onset.
• Size of Site –EN-7 includes a comprehensive size of site criterion that incorporates land for construction, operation, decommissioning, on-site spent fuel and radioactive waste storage; again, EN-6 did not provide this level of detail beyond introducing the size of the site as a criterion for review.
• It is also noted that the 2025 time limit on the deployment of nuclear sites, as set by EN-6, will be removed by EN-7 to avoid projects getting “timed out”; allowing for further certainty and flexibility from the view of the developers.

Ultimately, EN-7 will allow developers to evaluate multiple locations alongside the development of diverse nuclear technologies to ensures that nuclear projects are developed in the most appropriate locations. Through bringing the criteria considerations to the beginning of the process, this brings a much needed clarity to the process and will assist developers in finding the right locations, any types of nuclear technology, for their needs.

Data Centre focus

SMRs and AMRs

For data centres, SMRs and AMRs could enhance the reliability and stability of energy generation, meaning ultimately a more dependable source of power, reducing the risk of outages and ensuring continuous operation. Given the expected dependency on data centres for the future, this reliability will be essential for the sector.

The flexibility in site selection also means that SMRs and AMRs can be located closer to data centres, leading to a reduction in transmission losses and improvement in energy efficiency.

Data centre operators are therefore advised to consider the potential for co-location with new nuclear facilities to optimise their energy supply, and to engage with nuclear developers and the Government to identify suitable sites for co-location, as part of future strategic thinking.

Sustainability and Carbon Footprint

Nuclear power is a low-carbon energy source, and the increased use of nuclear energy can significantly reduce the carbon footprint of data centres. This aligns with the growing emphasis on sustainability within the tech industry and among data centre operators. By transitioning to nuclear power, data centres can contribute their sustainability goals and to broader climate change efforts.

Thoughts

The planning reforms to boost nuclear power offer a unique opportunity for data centre operators to enhance their energy security and sustainability. By actively engaging with nuclear developers and the Government, data centre operators can explore innovative solutions and integrate nuclear power into their energy mix.

Detractors will point to a need for nuclear technology to catch up to Government vision, and concerns around nuclear safety will remain pervasive. However, this will be seen by the sector as a proactive approach that will not only ensure a stable and reliable power supply but also support the industry's transition to a more sustainable future.

For further information, please email the authors or your usual CMS contact.

This article was co-authored by Matthew Honeyben (Energy Partner), Rebecca Roffe (Planning Partner), Robert Garden (Planning Partner), Chris Devitt (Planning Associate) and Katie Shale (Trainee Solicitor) at CMS.