TL;DR

Energy regulator Ofgem says approximately 140 proposed datacentre projects in Great Britain would need 50 gigawatts of electricity — exceeding the country’s current peak demand by 5GW. The surge in applications is threatening grid connections for renewable energy projects and could undermine the UK’s 2030 clean power targets.

A Surge That Exceeded All Forecasts

Ofgem’s consultation on new grid connections revealed a wave of datacentre applications between November 2024 and June 2025 that surpassed even the most ambitious projections. The 140 proposed schemes, driven largely by AI workloads powering tools like ChatGPT and Gemini, would collectively require more electricity than the entire country currently uses at peak.

The regulator warned that connecting these datacentres could delay other projects “critical for decarbonisation and economic growth.” Renewable energy developments are already struggling to connect at the pace they are being built, putting the government’s target for a virtually carbon-free power system by 2030 under further pressure.

One proposed datacentre in Elsham, Lincolnshire, was previously reported as potentially generating more greenhouse gas emissions than five international airports.

Tougher Rules Proposed

Ofgem is considering several measures to manage the queue. Tougher financial tests would weed out underfunded projects that block viable applications further down the line. The regulator is also exploring whether to charge developers a deposit or non-refundable fee for grid access, and whether datacentre operators should pay for and build their own connections.

Unviable applications are already blocking progress for priority projects, including those linked to the government’s AI growth zones — areas intended to offer streamlined planning and energy access to accelerate UK AI adoption.

Looking Forward

Ofgem described the datacentre energy challenge as “global” and noted there is currently no mechanism for prioritising projects deemed strategically important by ministers. How the regulator balances AI infrastructure ambitions against grid capacity and decarbonisation commitments will have significant implications for the UK’s energy and technology strategies.