This is the second in a ten-part article series on the legal strategies shaping the future of data centre development in the UK. The UK data centre sector’s expansion is increasingly dominated by the shell and core development model. Hyperscale and major colocation tenants are seeking to deploy capital efficiently, accelerate their time-to-market, and retain maximum control over their proprietary technical environments. In response, developers are delivering powered shells – buildings with foundational power and cooling infrastructure but without tenant-specific fit-out – as the market standard. This approach provides tenants with the freedom to customise their IT architecture. But it also presents developers and investors with complex legal and commercial challenges. The core objective is to create a flexible, scalable asset while ensuring a secure, bankable investment that meets the stringent criteria of institutional finance. The success in shell and core projects depends on the seamless integration of planning, development, construction, leasing and regulatory strategies. A misstep in one area can cascade through the project, affecting finance, tenant relationships and operational performance. This second instalment of our Insight Series examines the legal frameworks underpinning these developments, from the structure of development management agreements and lease contracts to the regulatory considerations shaping the market.

In the 2026 edition of Chambers UK BCLP received 36 practice area rankings and 76 individual lawyer recognitions. This year, the firm is recognized in six new practice areas and improved to a Band 1 ranking for Commercial Contracts, as well as a Band 2 ranking for Hotels and Leisure.  

This is the third in a ten-part article series on the legal strategies shaping the future of data centre development in the UK. The United Kingdom’s data centre sector is built on a striking paradox: demand for digital infrastructure seems limitless, but building it requires eye-watering amounts of capital. A hyperscale facility can cost more than £500 million, putting data centres among the most capital-intensive real estate assets in the world. In this high-stakes environment, financing is not just about securing capital. It’s about designing the right capital structure – balancing debt and equity in a way that reduces risk, satisfies lenders, equity partners and tenants, and still delivers long-term returns. In this third instalment of our Insight Series, we look at how sophisticated financing structures are used to balance risk and opportunity in the UK data centre market and share practical advice to help developers navigate complexity with confidence

This is the first in a ten-part article series on the legal strategies shaping the future of data centre development in the UK. The UK’s data centre market is entering a period of rapid expansion, set to grow from $10.7 billion in 2024 to $22.7 billion by 2030. This is being driven by the computational demands of artificial intelligence, the widespread shift to cloud services and the relentless rise of enterprise-level computing. The result is a highly competitive market for powered land. For hyperscale operators, institutional investors and specialist developers, the acquisition of these sites is no longer confined to the parameters of conventional real estate. Instead, it’s now a complex, high-stakes convergence of energy regulation, planning law and strategic commercial negotiation. Successfully navigating this landscape to deliver projects on time and on budget requires commercially astute legal advice to mitigate risk, unlock value and achieve market-leading outcomes. In this article, we explore the legal, regulatory and commercial strategies that underpin successful data centre development, from planning consent and power supply agreements to ESG integration and emerging technological requirements.