Nscale has become the latest company to face intense scrutiny over a proposed AI data centre in Essex, in the latest sign of the sector’s growing image problem.
The company plans to build a major AI data centre in Loughton, Essex, and had previously hoped to complete the project by the end of 2026. That timeline was always ambitious, given the skills shortage affecting the UK construction industry and the fact that the site is still being used as a scaffolding yard. But what could actually hold the project back is the industry’s old nemesis – planning.
Although the data centre received outline approval in 2024, renewed public concern about the impact of such developments has reignited debate around the site. Planning officers at Loughton Town Council have now called for a fresh planning application to be submitted because of changes proposed by Nscale.
Loughton Town Council won’t make the final decision on the project, as that responsibility lies with Epping Forest District Council. However, the objections raised by Loughton’s officers focus on several key concerns.
Unsurprisingly, one of the main issues is power. Reflecting on the wider public anxiety about AI data centres, the town council’s planning officers said they were concerned about the strain the project could place on the local electricity grid. They have called on Nscale to provide further evidence on the development’s likely impact.
In a further objection to the scheme, the officers have also hit back at proposed changes by Nscale – which they say is 50% higher than originally proposed and includes 50% more internal capacity. The objection hinges on power again, however, with it noting that the “proposal would require more cooling and increased energy to facilitate this application.”
As part of their objection, it has asked Nscale to submit a completely new planning application. That could have a major impact on the company’s timeline. Nscale has already pushed back the expected completion date to early 2027, citing technology upgrades rather than the latest planning issues.
An industry under fire
AI is being heralded by the UK Government as an opportunity to boost economic growth, and Nscale has been one of the big success stories. The firm recently completed a funding round which valued it at $14.6 billion, and has also attracted high-profile board members including Nick Clegg and Sheryl Sandberg.
Despite Nscale’s growth and strong government backing for the sector, the wider data centre industry is facing significant headwinds. Opposition is growing across the country over the pressure data centres place on the power grid, at a time when electricity prices are already high and there are fears they could rise further as a result of Trump’s war in Iran.
While the industry is trying to push back against the idea that data centres are inherently harmful, it is also facing increasing resistance from local authorities. Edinburgh Council recently announced plans for a moratorium on new data centre developments in the city, and Nscale is now encountering fresh opposition from Loughton Town Council.
Nscale, however, doesn’t appear overly concerned by the latest backlash. In a statement to The Telegraph, a company spokesperson noted, “Site investigation and permit work is under way on the Loughton site, and we expect construction work to begin in the second quarter of 2026.
“While the schedule was recently updated to accommodate the installation of the latest Vera Rubin 200 technology, we expect the site to be operational in the second quarter of 2027.”
