Brick Lane data centre go-ahead: Campaigners 'deeply disappointed' as ministers approve controversial plans

The government has approved controversial plans to build offices and a data centre around Brick Lane.Tower Hamlets mayor Lutfur Rahman called the decision “deeply disappointing and a missed opportunity to deliver the social and affordable housing that Tower Hamlets residents urgently need.”The Save Brick Lane campaign also said it was “deeply disappointed” by the decision, which it described as “clearly rushed”.It added the campaign was “seeking expert advice on how it might be challenged”.Property owners Truman Estates and Zeloof LLP plan to redevelop three sites in and around Brick Lane.An image of the planned data centre near Brick LaneMorris + CompanyTheir plan includes building five office buildings at the Truman Brewery between Brick Lane and Spital Street, along with a cinema, supermarket, a market and 44 homes, of which six would be for social rent.It also includes more offices at Ely’s Yard, and a data centre in Grey Eagle Street, both just to the west of Brick Lane.The council and the Save Brick Lane campaign both opposed the plans, arguing that a housing development would be a better use of the site.Campaigners at a public planning inquiry said the redevelopment could accelerate rising rents which could “displace” Spitalfields residents and Brick Lane’s curry houses.In a decision published this week, Mr Pennycook said Ms Rayner said they acknowledge “the housing needs of the local community, and the strongly held local views on the proposals”.Property owners Truman Estates and Zeloof LLP plan to redevelop three sites in and around Brick LaneGoogle MapsMr Pennycook added: “The Secretary of State notes that a significant Bangladeshi population lives and works in and around Spitalfields and Banglatown.“She has taken into account community concerns around the potential impact of the proposals on this specific community.”However, he said Ms Rayner had seen “no detailed evidence” on whether an alternative, housing-led development was feasible.Read MoreMr Pennycook’s decision said that the six homes for social rent had been “specifically designed to meet local housing needs and accommodate larger Bangladeshi heritage families”.It also suggested that “increased footfall would provide a boost to the businesses and curry houses on Brick Lane”.Mr Pennycook said the government gave “significant weight” to the jobs and “economic benefits” the office development is said to bring. His decision said these include “£80million of annual expenditure outside of the site, including £48million locally”.He also said the “public benefits of the data centre” – intended to give faster internet connections to nearby City financial traders – “would be very significant indeed”.A Save Brick Lane protest outside Truman Brewery LDRSHowever, Save Brick Lane said the planning inspector’s conclusion “flies in the face of the fact that there are currently over 30,000 households on the Tower Hamlets social housing waiting list, demonstrating the scale and urgency of the housing need”.It added: “The London Assembly report, ‘Gridlocked: how planning can ease London’s electricity constraints’, warns that the growing demand from data centres can delay the delivery of much-needed housing.“Our community should not be expected to accept a noisy, energy-intensive development that will consume enough power for over 15,000 homes while local needs are being discarded for the dictates of the financial district. “Reacting to the decision, Rahman, of the borough’s ruling Aspire Party, said he was concerned about “the impact this development could have on Brick Lane and Banglatown”.He said: “Tower Hamlets is facing an acute housing crisis, with over 30,000 households on the waiting list and thousands of families living in overcrowded conditions.“Against that backdrop, a development of this scale delivering only six homes for social rent falls significantly short of addressing local need.”He added that a data centre would “do nothing to contribute to the activity, vitality and character of this historic and treasured part of London.”The government announced in October 2025 that it would decide whether to grant planning permission for the developments, while a planning inquiry was ongoing.Truman Estates applied to the council for planning permission for the three developments in August 2024.It then appealed to the government’s planning inspectorate ten months later in June 2025, taking the decision out of the council’s hands. This was on the basis that the council had missed its deadline to decide itself.Labour MP Steve Reed – who was then the secretary of state for housing and local government – announced in October that the government would make the decision itself.He said this was because the proposals were “of major importance” and had “more than local significance”.This was during a three-week public planning inquiry into the appeal. The government made its decision after receiving the planning inspector’s report from the inquiry.The timing of the approval comes before the council was able to update its planning policy earmarking the Truman Brewery site for homes.A new draft Local Plan – which shapes development in the borough – hopes to earmark the site for a housing-led scheme with 800 homes.However, it still needs to be considered by the Planning Inspectorate. Pennycook said this meant it should only be given “limited weight”.Truman Estates has been contacted for comment.