Government Approves Brick Lane Offices and Data Centre Over Council Objections
Tower Hamlets Council and campaigners lose appeal as minister backs commercial scheme with six social homes
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Residents of Spitalfields and Banglatown will see offices, a data centre, and 44 new homes built near Brick Lane after the government overruled local objections. Housing Secretary Angela Rayner approved the scheme on 29 July 2025, despite Tower Hamlets Council and the Save Brick Lane campaign arguing the site should prioritise housing.
The decision was made by Labour minister Matthew Pennycook, who acknowledged the area’s housing crisis but said there was no evidence an alternative, housing-led scheme would work. The development, proposed by Truman Estates and Zeloof LLP, includes five office blocks, a cinema, a supermarket, and a market. The data centre will occupy Grey Eagle Street, west of Brick Lane.
Lambeth Council approves £2bn Vauxhall development with reduced affordable housing
Plans for 1,097 flats and 1,164 co-living units in seven buildings, some up to 69 storeys, have been approved.
Council and campaigners slam 'rushed' decision
Tower Hamlets mayor Lutfur Rahman called the approval "deeply disappointing" and said it failed to address the borough’s housing shortage. More than 30,000 households are on the council’s social housing waiting list. Rahman, of the ruling Aspire Party, said the data centre would not benefit the area’s character or vitality.
This development falls significantly short of addressing local need.
Lutfur Rahman, Tower Hamlets mayor
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Lewisham Council’s updated business plan, due for mayoral approval on 9 September 2026, also sets out transport upgrades and a Goldsmiths university campus for late 2027.
The Save Brick Lane campaign described the decision as "clearly rushed" and is seeking legal advice on a potential challenge. It argued the data centre’s power demand, equivalent to 15,000 homes, could delay housing projects. A London Assembly report warned data centres risk worsening electricity constraints, which may slow new home construction.
Why the government backed the scheme
Pennycook’s decision noted the six social homes were designed for larger Bangladeshi heritage families. It also claimed the offices would bring £80 million in annual spending, including £48 million locally. The data centre, intended to serve City financial firms, was given "significant weight" for its economic benefits.
The council’s objection centred on the site’s potential for housing. A draft Local Plan, yet to be approved, proposes 800 homes for the Truman Brewery site. Pennycook said this plan carried "limited weight" because it remains unfinalised. The developers, Truman Estates and Zeloof LLP, applied for planning permission in August 2024 but appealed to the government in June 2025 after the council missed its decision deadline.
What happens next
Truman Estates and Zeloof LLP can now proceed with construction, though no timeline has been announced. The Save Brick Lane campaign is reviewing legal options, while Tower Hamlets Council may push ahead with its Local Plan to designate the site for housing. Residents can track progress via the council’s planning portal or the campaign’s social media updates.
Questions this report answers
+What does the approved scheme include?
The scheme includes five office buildings, a data centre on Grey Eagle Street, a cinema, a supermarket, a market, and 44 homes, with only six of those for social rent. This means most new housing will not be affordable, despite the area’s severe housing shortage.
+Why did the government approve the scheme despite council objections?
The government said the scheme would bring £80 million in annual spending, including £48 million spent locally, and that the six social homes were designed for larger Bangladeshi heritage families. The data centre was also given significant weight for its economic benefits to City financial firms.
+What are campaigners planning to do next?
The Save Brick Lane campaign is seeking legal advice to challenge the government’s decision, arguing it was rushed and could delay housing projects. They also claim the data centre’s power demand could worsen electricity constraints in London.
+When will construction start on the Brick Lane development?
No confirmed start date has been announced yet, though developers Truman Estates and Zeloof LLP can now proceed with construction plans. Residents can monitor progress through the council’s planning portal or campaign updates.
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