Microsoft gains approval for construction in Hollands Kroon area

After what has been a long road, potted with controversy and setbacks, Microsoft has obtained construction permission for its data center in the Hollands Kroon area in the north of the Netherlands, after a protracted permitting process. 

While permission has now been granted, back in 2021, the giant had already gained approval from the Hollands Kroon government, however, Noord-Holland ruled the municipality was not authorized to grant the permit. Enforcement procedures were then launched against Microsoft.

Commenting on the approval, the OD NZKG said in a statement: "In November 2022, the Council of State ruled that the nitrogen released during the construction of projects cannot be disregarded. This ended the so-called building exemption. For all companies, and therefore also for Microsoft, this meant that the nitrogen load for the surrounding nature had to be assessed for each construction project." OD NZKG concluded the assessment shows that the construction and use of the data center have "no negative consequences for the Natura 2000 areas." This news means that Microsoft's data center won't suffer the same fate as Meta's Zeewolde hyperscale facility, which was canceled after widespread protests. 

There is an ongoing debate in the Netherlands, home to around 200 data centers, and a growing number of hyperscalers, around Nitrogen, as the highest producer in the EU. The government has pledged to halve emissions by 2030, and this has led to a well-publicized and heavily debated decision to encourage Dutch farmers to reduce livestock herds and move away from the industry. 

Farmers and developers alike are required to apply for nitrogen permits, which critics say Microsoft didn't have. It was instead issued a 'tolerance decision' permitting the giant to continue working on the development 'in anticipation of the final permit, but at the company's own risk.' 

Many farmers in the region have raised concerns that the Netherlands is in the midst of data center takeover, with hyperscalers dominating landscapes where crops used to grow. The environmental implications of the data center construction surge have also been highlighted, as have the data centers' high water consumption, in a region that has been drought-stricken in recent years.