Ministers were further told that “high wholesale electricity prices, long lead times for grid connections, and energy pricing are challenges to data center investment across the U.K.” at a second meeting in June, days after the government promised new measures to speed up grid connections in its Industrial Strategy.
A spokesperson for the Department for Energy Security and Net Zero said its plan for the U.K. to reach clean power by 2030 will enable the development of energy-intensive data centers, alongside work with regulator Ofgem and network companies “to reform the outdated connections process and speed up delivery of new infrastructure.”
However, attendees of the June meeting said AI demand is likely to “rely heavily” on reprioritizing existing grid connections until 2030, suggesting promised reforms and investment are not expected to alleviate constraints significantly before then.
Quick fix?
As countries race to adapt their electricity grids for the demands of AI, locating data centers close to new and existing gas facilities has been suggested as a quick way to access energy.
“Temporary on-site generation, including natural gas fuel cells, was raised as an interim measure to meet power needs during grid connection delays,” according to the June readout, noting the “limitations of batteries for backup.”
DESNZ said the government is considering a range of options, but indicated it is not planning to authorize on-site gas cells. A spokesperson repeatedly declined to rule it out on the record.
