Budget 2026: Healey unveils data centre deal in bid to keep Britain’s AI data in the UK

John Healey has unveiled a new deal offering data centre developers priority access to Britain’s electricity grid in exchange for investment in jobs and environmental protections. Announcing the British Data Centre Covenant in Wednesday’s Budget, Healey said the government would impose strict conditions on developers while helping critical facilities secure the power needed to support Britain’s growing AI industry. To ensure our most sensitive data stays under British control, I am setting out a new deal for datacentres in the UK, he told MPs. When the NHS uses AI to treat patients, we want that data here. When our Armed Forces use AI to keep us safe, we want that data here . Under the covenant, developers will be required to invest in local communities, create jobs and protect local water supplies. In return, critical data centres will receive the grid connections they need and, where necessary, permission to build on-site power generation while waiting for a connect