In November, the regulator for the energy sector Ofgem warned that the queue to get a supply of electricity had surged past “even the most ambitious forecasts for future demand” driven mostly by the demand from AI data centres. <\/p>\n
And it warned that some of those projects in the queue were only “speculative” – even if they were given a connection they did not have enough financing, proper planning permission or land rights to lead to a real project.<\/p>\n
The risk was that genuine projects, further behind in the queue but which could provide new jobs and local economic growth, were being blocked.<\/p>\n
The government now plans to tackle that problem by prioritising those projects that offer the most economic development and job creation. <\/p>\n
It will consult on allowing “strategically important” projects to skip the queue. These would include projects such as AI infrastructure, EV charging hubs and industrial sites looking to switch away from fossil fuels to electricity. <\/p>\n
Simultaneously, Ofgem is looking at consulting on tightening up the rules to join the queue in the first place.<\/p>\n
“Delivering data centres… 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,” according to AI Minister Kanishka Narayan.<\/p>\n
But the Home Builders Federation (HBF) raised concerns that new houses were not included as priority pieces of infrastructure.<\/p>\n
“As we continue to face into a housing crisis it is frustrating that regulatory, planning and policy arrangements effectively prioritise energy intensive data centres over energy efficient homes for families,” said Steve Turner, executive director at HBF.<\/p>\n
Data centres already receive preferential treatment in planning as they have been designated critical national infrastructure, meaning they can not be blocked by local objections.<\/p>\n
Turner added that if housing wasn’t prioritised it would be an “effective moratorium on new homes in areas where capacity is constrained”. <\/p>\n
London Assembly members warned in December this was already the reality being faced by parts of the capital. <\/p>\n