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The UK government has introduced new proposals that could allow artificial intelligence (AI) data centres to receive priority access to the electricity grid. Currently, all new infrastructure projects—including hospitals and industrial sites—must enter a virtual waiting list to secure an electricity connection. However, soaring demand, particularly driven by energy-intensive data centres, has caused the queue to grow sharply, increasing by 460% in the first half of 2025 alone. This surge means some projects may face delays of several years before becoming operational.
The government plans to address this by permitting certain projects with the greatest potential for economic growth and job creation to move ahead in the queue. These “strategically important” developments could include AI facilities, electric vehicle charging hubs, and industrial sites that aim to transition from fossil fuels to electric power. Alongside this, the energy regulator Ofgem is considering tightening the criteria for joining the queue to weed out speculative projects lacking sufficient financing, planning permissions, or land rights. Ofgem has previously warned that many projects currently waiting in line fall into this speculative category, potentially blocking genuine initiatives capable of generating local employment and economic benefits.
The proposals have elicited mixed reactions. AI Minister Kanishka Narayan hailed the reforms as a necessary step to accelerate AI infrastructure and foster a more prosperous and equitable economy. Conversely, the Home Builders Federation (HBF) voiced concerns over the exclusion of new housing developments from the priority list. Steve Turner, HBF’s executive director, emphasized that these regulations essentially prioritize energy-demanding data centres over energy-efficient homes, which risks creating an effective halt on new housing construction in areas where grid capacity is limited. This issue has been echoed by London Assembly members, who noted that some parts of the capital are already experiencing such constraints.
Currently, nearly 500 data centres operate across the UK, supporting essential digital services like banking and online gaming, and consuming about 2% of the nation’s electricity. With the rapid growth of AI technologies, this number is expected to rise significantly, along with their energy consumption. According to the grid operator, the electricity demand of data centres could increase by as much as six times by 2050, underscoring the urgency for clear policies to manage grid access while balancing diverse infrastructure needs
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