Labour approves data centre that threatens Heathrow third runway

Labour has approved plans for a giant green-belt data centre despite claims it risks derailing Heathrow's third runway project.

Steve Reed, the Housing Secretary, granted planning permission for a new data centre west of Britain's busiest airport that will be developed by the real estate giant Tritax Big Box.

The application had been referred to the Government after delays at the council in Slough.

However, Labour's decision to approve the scheme risks triggering a row with Heathrow bosses, who have claimed Britain should prioritise a third runway at the airport more than new data centres.

The airport had warned that Tritax's proposals threatened to interfere with its plans, claiming its "master plan" included using the site for freight associated with the project.

The airport had called the site "high priority" and said its approval as a data centre would "be harmful to [Heathrow's] expansion plans".

Despite this, Heathrow was told that the site had "no formal status or protection for airport-related development".

The planning inspector who proposed approving Tritax's application said: "There is no realistic suggestion that approval of the appeal scheme would rule out the expansion of Heathrow and its related uses. It must follow that there would be no direct conflict with government policy support for a third runway at Heathrow."

Labour has publicly backed plans for a third runway at Heathrow, arguing it is a core part of its growth and infrastructure plans.

The long-delayed, £49bn project underpins Sir Keir Starmer's strategy for growth, with the Prime Minister previously pledging to do "whatever it takes" to start building it before the end of parliament.

However, Heathrow has warned that it is facing headwinds to expand its airport. Thomas Woldbye, its chief executive, raised concerns last month that the electrical power needed to fuel its runway project could be drained by 85-plus data centres built in the M4 corridor in recent years.

Speaking to The Telegraph, Mr Woldbye said: "We would argue that a third runway is more critical national infrastructure than data centres, which conceivably you can put somewhere else. We can't do with the airport."

The Government has repeatedly bypassed local authorities to support data centre developments since coming to power in 2024.

The sites, which are seen as crucial to the development of AI and cloud computing, are often planned in the green belt around Slough.

Matthew Pennycook, the housing minister, writing on Mr Reed's behalf, said there was a "continuing and unprecedented demand for data centres" and that the project would generate substantial economic benefits.

Mr Reed was asked to make a call on the project after Slough borough council failed to make a decision in time. The council had objected later, saying it was in "one of the most fragile and vulnerable parts of the green belt around London".

The data centre, which will be built on the outskirts of Poyle, slightly west of Heathrow and the M25, will span around 41,620 sq m – around six football pitches – and be three storeys high.

The development will also include a 100 megawatt battery storage system.

A spokesman for Slough Borough Council said it was "very disappointed" with Mr Reed's decision and that it will look at it "very closely" before deciding on its next steps.

They said data centre capacity in Slough was already set to triple "within our small borough alone over the next few years" because of existing planning consents.

"The Government have decided that this is not enough," the council said.