Day: August 10, 2025

Concerns Over Data Center Investment in the U.K. Due to Power Grid Challenges

Ministers have been informed that “high wholesale electricity prices, long lead times for grid connections, and energy pricing are challenges to data center investment across the U.K.,” reports 24brussels. This assessment emerged during a second meeting in June, shortly after the government announced new measures aimed at expediting grid connections under its Industrial Strategy.

A spokesperson for the Department for Energy Security and Net Zero emphasized that the U.K.’s goal of achieving clean power by 2030 would enable the growth of energy-intensive data centers. The plan includes collaboration with the regulator Ofgem and network companies to “reform the outdated connections process and speed up delivery of new infrastructure.”

Participants in the June meeting highlighted that the demand generated by artificial intelligence (AI) will likely depend heavily on the reprioritization of existing grid connections until 2030. This suggests that the anticipated reforms and investment might not significantly mitigate existing constraints before that timeline.

Temporary Solutions Proposed

As nations scramble to adapt their electricity grids to meet the rising energy demands of AI, the strategic placement of data centers near both new and existing gas facilities has been proposed as a quick solution for energy access.

According to the meeting’s readout, “temporary on-site generation, including natural gas fuel cells, was raised as an interim measure to meet power needs during grid connection delays,” although it underscored the “limitations of batteries for backup.”

The Department for Energy Security and Net Zero noted that the government is exploring various options but has not indicated a plan to authorize on-site gas cells. A spokesperson, however, did not completely dismiss the possibility on record.