Approval of east London datacentre labelled ‘slap in the face’ for local democracy

Campaigners decry Angela Rayner’s backing for Brick Lane project that has only 11 affordable homes

A £500m redevelopment of the Truman Brewery estate in Brick Lane, east London , has been approved, clearing the way for the construction of a datacentre, offices and apartments despite opposition from Tower Hamlets council and local campaign groups.

The housing secretary, Angela Rayner, made the decision in a letter issued on her behalf last week by the housing minister Matthew Pennycook, rejecting demands from the council and campaigners for for the site to be used for hundreds of homes instead.

The Save Brick Lane coalition, made up of nine groups opposed to the project, said their “community should not be expected to accept a noisy, energy-intensive development that consumes a significant amount of power”.

Dr Fatima Rajina of Nijjor Manush, one of the groups in the coalition, said it “will cause people who have lived in the area to move out, which will break up families. The people who made Brick Lane what it is will be seen as artefacts”.

She said the group had asked the local community “what they want and what Brick Lane means to them”, and that many people had said they simply wanted their families to stay together.

The property owners, Truman Estates and Zeloof LLP , propose six new blocks, a datacentre, offices and 44 homes. It will also include a cinema, exhibition and events space, art galleries, shops, cafes, restaurants, community spaces, a food market and workspace.

Rajina said campaigners had worked with architects, policymakers and planners, who had come up with a master plan that Tower Hamlets adopted in September 2024 that would have created 350 homes.

That was overturned by the government’s decision. Pennycook’s letter said there was “no detailed evidence” of the feasibility and deliverability of an alternative, housing-centred scheme, and rejected demands for it.

The Tower Hamlets mayor, Lutfur Rahman, said the decision was “deeply disappointing and a missed opportunity to deliver the social and affordable housing that … residents urgently need”.

Rajina described the overturning of the council’s unanimous decision as the “trumping” of local democracy and said it felt like a slap in the face.

Pennycook’s letter said the datacentre’s scale “would relate in a reasonable way to the other buildings in the vicinity” and that the wider proposals would “very clearly enhance both the character and appearance of the Brick Lane and Fournier Street conservation area”.

The letter specifically addressed concerns raised by the area’s Bangladeshi community, noting that the six social rented homes had been designed to meet local housing needs, including for larger families with Bangladeshi heritage.

Rajina criticised the government’s approach. “It’s frustrating when hearing about Andy Burnham and Angela Rayner creating a new language around localism, but giving so much power to landlords, directly pushing out locals,” she said.

She also raised concerns about the datacentre’s water use. It “will use a huge amount of water and local people will suffer, water will become a luxury commodity”, she said.

One person who works in the area said: “We don’t need it … Brick Lane is the heart of community, there’s already been so much change and adding a datacentre will just be another bad change.”

Of the 44 homes to be built, 11 will be affordable and six will be designated as social homes available to rent. More than 30,000 households are registered as awaiting social housing in Tower Hamlets.

The Save Brick Lane coalition is seeking expert advice on whether Rayner’s decision can be challenged.

Truman Estates has been approached for comment.