With 140 new data centres now requesting grid connection, the government wants powers to weed out applications from non-viable schemes.
The UK government is seeking new powers to clamp down on speculative grid connection applications amid a wave of requests from data centre projects.
It has launched a consultation with grid operators and business customers about these new powers, claiming the number of applications have soared by 460% in the six months to June 2025.
Ofgem (the Office of Gas and Electricity Markets) says there are 140 data centres currently in the queue, together requiring 50GW of electricity.
The government says speculative applications are inflating the pipeline, contributing to grid-connection waits of up to 15 years and delaying connections for strategically important projects.
It wants to move away from the first-come-first-served process to prioritise viable schemes that benefit Britain – including data centres, AI Growth Zones, charging hubs and electrified industrial sites.
Ofgem describes non-viable schemes as those unlikely to progress to connection because they won’t get planning permission or secure a final investment decision (FID).
Ofgem said around half the data centres in the queue reported they had achieved FID.
‘Europe’s leading AI ecosystem’
“Industries that can bring real economic benefits are ready and waiting to be powered up, but the queue for grid connections has grown exponentially due to speculative applications,” said energy minister Michael Shanks.
“We will prioritise the projects, including data centres and industrial sites, that are ready and needed to deliver growth and jobs for communities across Britain.”
Minister Kanishka Narayan added: “The AI revolution is already making breakthroughs, from health to clean energy, a reality. The UK is home to Europe’s leading AI ecosystem, with firms like Nscale and Wayve pulling in billions of pounds worth of investment.
“Delivering data centres – which we’re turbo-charging through our AI Growth Zones – is fundamental to this work, and all of this relies on access to the grid. These timely reforms will help us move at pace, to seize AI’s potential to help build a wealthier and fairer Britain.”
Kayte O’Neill, chief operating officer of the National Energy System Operator (NESO), said: “The surge in demand applications shows the strength of investment interest across Great Britain, but the demand connections pipeline must reflect projects that are credible, ready and committed to progressing.
“We are committed to working with government, industry and Ofgem to prioritise strategically important projects, while removing speculative applications. This will ensure data centres, industrial sites and vital public services can access clean, reliable power, while also supporting growth, innovation and jobs across Britain.”
The consultation closes on 15 April.
