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Energy Secretary Ed Miliband has acknowledged that the rapid growth of data centres in the UK presents significant uncertainties regarding their impact on the country’s commitment to achieving net zero carbon emissions. In a letter addressed to Members of Parliament, Miliband responded to concerns about the apparent absence of data centres in the government’s official net zero strategy. This letter has since prompted MPs to initiate a new inquiry focusing on the environmental consequences associated with these large facilities.
Data centres, which house powerful computing equipment crucial for digital services such as artificial intelligence and streaming, are pivotal to the government’s ambitions for the UK to become a global leader in AI. However, the operation of these centres requires extensive amounts of electricity and water, often relying on gas-powered backup generators, raising worries about increased carbon emissions. Many upcoming data centre projects in the UK are backed by major US technology companies, leading environmental advocates to voice apprehensions about their potential ecological footprint.
Miliband emphasized that the government’s modelling takes into account the possible emissions from data centres by projecting overall electricity demand growth, which aligns with broader economic trends. Yet, he also noted, “Future demand from data centres, and interaction with wider energy system demands, remains inherently uncertain.” The Energy Secretary assured that a range of demand trajectories would be examined to evaluate how these emissions might evolve under different scenarios, marking the most detailed explanation so far on how this issue is being incorporated into government planning.
The Environmental Audit Committee, led by Chair Toby Perkins, is now exploring the expected energy and water consumption by data centres and how this might influence the UK’s ability to meet its net zero targets. While Perkins acknowledged the potential economic benefits of data centres, he stressed the importance of fully understanding their environmental implications before rapidly approving new developments. On the other hand, Conservative shadow energy secretary Claire Coutinho argued against outright restrictions on data centres in the UK, suggesting that limiting them would neither effectively address climate change nor benefit the economy. She advocated for a balanced approach to harness AI-driven growth alongside the development and export of green technologies.
The government’s push to source 95% of electricity from renewables by 2030 faces new challenges amid increasing demands on the grid, partly driven by the expansion of data centres. Ofgem, the UK’s energy regulator, recently reported a surge in grid connection applications linked to approximately 140 proposed data centres, which collectively could require around 50 gigawatts of electricity—exceeding peak national demand by 5 gigawatts. Environmental groups like Friends of the Earth warn that such an expansion could lead to energy consumption surpassing current national levels, criticizing the government’s aggressive growth policies. They express concern about the government’s ability to meet legally binding climate goals while simultaneously accommodating substantial increases in emissions and water use from these large-scale data facilities
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