Data Centre Covenant
HM Treasury policy paper setting jobs, training and local-benefit tests for UK data centres.
HM Treasury published the Data Centre Covenant on 28 October 2026, offering strategic data-centre projects faster grid connections before 2030 if they fund apprenticeships, create lasting local jobs and agree a Local Benefit Plan.
Last refreshed: 6 November 2026 · Appears in 1 active topic
Will data centres trade apprenticeships and local jobs for a faster grid connection?
Timeline for Data Centre Covenant
Set non-binding jobs and training tests for grid priority
AI: Jobs, Power & Money: Treasury asks data centres for good jobsBackground
The Data Centre Covenant is a non-statutory policy paper from HM Treasury. It asks developers to create good, well-paid local jobs that last beyond construction, to fund paid apprenticeships at every site, and to pay for training where roles cannot yet be filled locally.
Every data centre is encouraged to meet its tests. Projects the government judges strategic must meet them, and agree a Local Benefit Plan scaled to their size, to win priority grid capacity under Planning and Infrastructure Act powers. The tests are written with "should" and name no wage, and the paper leaves open how ministers will judge them.
Ministers are trading grid access for these commitments: they put Britain's need at 6 GW of AI data-centre capacity by 2030, and connection offers under the reformed queue began in May 2026, with AI Growth Zones given priority.
What is the UK Data Centre Covenant?
Is the Data Centre Covenant legally binding?
What do data centres get in return for meeting the Covenant?
How much AI data-centre capacity does the UK want by 2030?
Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Updated 6 November 2026. Editorial standards.