‘Painful’ UK planning process delaying power supplies for Microsoft projects

The UK’s planning system is “painful”, according to a European executive at Microsoft, amid delays in securing energy and power for new developments.

Clare Barclay, president of enterprise and industry for the tech giant in Europe, said the company is facing lengthy delays to secure the energy to run a new data centre development in Leeds.

Microsoft filed plans for the centre, based in Skelton Grange on the edge of the West Yorkshire city, earlier this month with hopes to start construction in 2027.

However, Ms Barclay – who also chairs the Government’s Industrial Strategy Advisory Council – said planning barriers mean it may not be able to power the site until 2032.

She told an audience at the CBI annual conference: “There are some things that we would welcome on planning: access to energy infrastructure, data centres. All that kind of stuff is really important.

“The planning process is painful.

“Because I think with the planning permission that we had in Leeds, we weren’t going to get energy and power in until 2032 and you sort of think about how we’re willing to make the investment now, but it’s way off running energy and power being available.

“So I think some intervention there is really important to us.”

Last month, the Government announced more changes to planning rules in an effort to accelerate developments and support its ambitions for greater economic growth.

Ms Barclay also stressed that significant energy costs are proving a challenge for many businesses operating in the UK.

She said: “On energy, there’s been some kinds of sticking plasters put on it in terms of some of the things that have been done with pricing. We know there’s a much bigger problem to solve though.”

Earlier in the day, Business Secretary Peter Kyle launched a consultation aimed at cutting electricity bills for 7,000 manufacturers by up to 25%.

The scheme will cut energy prices for thousands of businesses from April 2027 in industries including automotive and aerospace and foundational sectors in their supply chains, such as chemicals, the Department for Business and Trade said.