Hertsmere councillors delayed a £2.5 billion data centre decision over its visual impact, water supply and financial contributions to the community.
Hertsmere (UK) councillors deferred a decision on Ark Data Centres’ proposed £2.5 billion development near Watford on 5 November 2026. The project would replace the former Mercure hotel on Tyler’s Way with four data buildings, each approximately 36 metres high. Two substations and a visitor reception centre would also occupy the roughly 18-acre site. Councillors sought further negotiations over the development’s visual impact and community contributions, alongside clarification about water supplies.
GATE Herts, a group representing Gypsy and traveller communities, raised concerns about the development’s proximity to a long-established residential site. It said the buildings would stand just 10 metres away and could cause indirect discrimination through disturbance and environmental stress. At the meeting, a representative of Letchmore Heath Village Trust also highlighted the buildings’ dominating effect and noise from generator testing. More than 1,000 people registered objections, many concerning the development’s visual impact.
Councillors questioned whether local water supplies could accommodate the facility because Affinity Water had not confirmed capacity. Ark representative Rob Silvester said the project would have no adverse effect on supplies and estimated annual consumption at one-twelfth of the former hotel’s water usage. Some councillors remained unconvinced and questioned the financial contributions offered to the community. Ark said it had engaged with residents throughout planning and would continue doing so during construction.
The Hertsmere deferral follows other local council decisions on data centre development reported by Digital Watch. In the United States, San Diego ratified a temporary moratorium, while Memphis postponed a decision on a proposed moratorium. In Australia, Tasmania’s Latrobe Council asked Firmus to stop site work while it assessed whether activities exceeded existing permissions. Councils have also allowed projects to proceed with safeguards, including George Town Council’s conditional approval of a 288-megawatt AI data centre, subject to requirements covering noise, air quality monitoring and diesel generator use.
Why does it matter?
The deferral shows how a data centre’s location, design and resource requirements can affect its planning assessment. Its proximity to the Gypsy and traveller site also brings residents’ living conditions and concerns about unequal impacts into consideration. Councillors sought clearer water supply information and further negotiations on community contributions before reaching a decision. The case connects investment in computing infrastructure with local planning, resource availability and the interests of neighbouring communities.
