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Data centre developers hand cash to Labour in ‘Yimby' charm offensive

Data centre developers hand cash to Labour in ‘Yimby' charm offensive

Telegrapha day ago
The developer behind one of Europe's biggest data centres has donated tens of thousands of pounds to Labour amid a race to get more properties built across Britain.
DC01, a property developer that is seeking to build a £3.75bn data centre in Hertfordshire, gave £20,000 to the Labour Growth Group, which includes dozens of Labour MPs, in May, according to Electoral Commission records.
The property company sponsored a reception at the De Vere Grand Connaught Rooms in Covent Garden for Labour MPs in June that was attended by senior ministers, including Darren Jones, the Chief Secretary to the Treasury, and Peter Kyle, the Technology Secretary.
At the dinner, Mr Kyle spoke of the 'essential role data infrastructure will play in delivering the UK's technology ambitions', DC01 said in a LinkedIn post.
Another property company owned by London-listed developer Tritax Big Box gave £25,000 to a Labour pressure group called Labour Yimby – or ' yes in my back yard ' – in June. Labour Yimby calls itself a 'grassroots pro-housing, pro-growth movement' largely made up of Labour councillors.
Tritax Big Box manages billions of pounds in properties for logistics and warehousing, but has increasingly pitched its facilities as 'compelling data centre opportunities'.
New planning applications
The donations come amid deepening ties between Labour, developers and the technology sector as the Government seeks to boost investment in Britain, at a time when interest in artificial intelligence (AI) is booming.
Labour ministers have sought to smooth over planning rules to make it easier for data centres to be built on the green belt in so-called 'grey belt' areas.
Multiple new data centre applications have been waved through, despite concerns from residents and in some cases objections from local councils.
It follows concerns that a glut of new data centres could ramp up the UK's emissions. Data centres for AI require racks of thousands of powerful and power-hungry computer processors.
In September, the Government tweaked planning rules to classify data centres as projects critical to national security, which can help bypass planning roadblocks.
Announcing the measures, Mr Kyle also hailed DC01's data centre plans as a 'vote of confidence' in Labour's approach.
DC01 received outline planning permission from Hertfordshire County Council in January for its 2m sq ft facility near South Mimms. It still requires full planning permission for the project.
It is not clear who funds DC01 or who its ultimate customer will be. If the project goes ahead, it could secure a deal with a technology giant such as Amazon or Microsoft. DC01 has said its project will create 200 permanent jobs and 500 construction roles.
Labour Growth Group declined to comment.
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