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LSE Links Google, xAI and UK Datacentres to Climate Litigation

Josh Henderson 3 min read

Datacentre climate litigation has moved from a planning-law sideshow to a board-level risk for AI infrastructure, after the London School of Economics’ Grantham Research Institute identified emissions from powering large data centres as one of the areas likely to shape the next wave of climate cases.

The 2026 Global Trends in Climate Change Litigation snapshot, published on 25 June 2026, analyses more than 3,600 climate-related lawsuits filed since 2015 and points to the growing use of courts to test how governments, regulators and companies approve energy-intensive projects.

The report, authored by Joana Setzer, Catherine Higham and Tiffanie Chan, draws on the Climate Litigation Database maintained by the Sabin Center for Climate Change Law and places datacentres within a wider shift in climate litigation. The legal pressure is no longer confined to fossil fuel producers or government emissions targets.

It is now reaching the infrastructure that supports artificial intelligence, cloud computing and digital services, where power demand, water consumption, air pollution and grid access are increasingly treated as legal issues rather than operational background.

The practitioner consequence is a more evidence-heavy risk environment for solicitors advising developers, hyperscale operators, local authorities and energy regulators. In Ireland, ClientEarth, Friends of the Irish Environment and Friends of the Earth Ireland have brought High Court proceedings against the Commission for Regulation of Utilities over its Large Energy Users Connection Policy, arguing that the rules for datacentre grid access risk locking the state into fossil gas.

The challenge is commercially significant because Ireland already hosts roughly 90 datacentres, while campaigners say the sector uses more than a fifth of the country’s electricity.

The UK has already seen the same pressure applied through planning law. Foxglove and Global Action Plan challenged the UK Government’s decision to allow a hyperscale datacentre at Woodlands Park in Buckinghamshire after ministers overruled Buckinghamshire Council. The Government later accepted that the permission should be quashed because measures promised by developer Greystoke and any future operator had not been made legally binding.

For planning and environmental lawyers, the lesson is practical: litigation can reshape a project even when the case never reaches a final contested judgment.

In the United States, the dispute around Elon Musk’s xAI shows how quickly datacentre litigation can move beyond planning into federal environmental enforcement.

The NAACP has challenged xAI’s alleged use of gas turbines at its Mississippi datacentre under the Clean Air Act, while the Department of Justice has sought to intervene in a way that places AI infrastructure, air permitting and national economic interest in direct tension.

Legal teams advising AI, cloud and datacentre clients should now expect LSE, ClientEarth, Foxglove and the Department of Justice to be cited in boardroom risk assessments where planning consent, grid connection, emissions evidence and enforceable mitigation sit at the centre of project approval.

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