Currently, approximately 140 data centers are lined up to connect to Britain’s power grid, with their combined energy needs exceeding the country’s present peak electricity usage. According to Ofgem’s ‘Demand Connections Reform’ document, the vast queue, plagued by non-viable projects, is ongoing despite some projects being held back due to network or generation construction times. The need for prioritizing key demand projects like data centers is evident, yet the regulatory framework lacks mechanisms to do so. Since late 2024, contractual demands have ballooned from 41 GW to 125 GW. About 50 GW is expected from 140 data centers that are either under construction or planning stages, yet connecting them synchronously seems improbable without additional grid and generation capacity.

Government plans such as the ‘AI Opportunities Action Plan’ aim to facilitate data center construction within designated ‘AI Growth Zones.’ However, challenges remain, primarily due to the complexity of securing multiple sites and the financial implications faced by operators. Despite earlier Ofgem efforts to accelerate grid connections, clarity on execution is still sought. Concerns are mirrored across global markets, where securing power reservations often precedes the real feasibility of projects.

The government’s ‘AI Energy Council,’ involving major energy players and data center giants like Google and Microsoft, is tasked with assuring adequate energy supply, including investments in clean power sources. Meanwhile, small modular reactors planned in Wales aren’t expected to contribute until much later. The ongoing quest involves pulling together strategic development in AI zones and ensuring readiness for future demands.