Today’s 2-Minute UK AI Brief
4 December 2025
TL;DR — The growth of data centres in London has been linked to delays in new housing construction.
Why it matters
- The London Assembly reported that energy demands from data centres halted housing projects in 2022.
- This situation highlights the ongoing tension between technological infrastructure and urban development.
- Delays in housing could exacerbate the existing housing crisis in the UK.
Explainer
The rapid expansion of data centres in the UK, particularly in London, has raised concerns about their impact on local infrastructure and housing availability. According to a report by the London Assembly, the energy-intensive nature of these data centres has led to temporary halts in the construction of new homes. As cities strive to balance technological advancement with the need for housing, this issue underscores the challenges faced by urban planners and policymakers. The growing demand for digital services and data storage is driving the establishment of more data centres, which in turn places additional strain on energy resources and urban space. The implications of this trend are significant, as delays in housing construction can worsen the already critical housing shortage in the UK, affecting affordability and availability for residents.
Sources: ukri.org bbc.com theguardian.com ncsc.gov.uk