Developers planning new UK data centres could be required to pay refundable deposits worth hundreds of millions of pounds before securing electricity grid connections under proposals unveiled by energy regulator Ofgem on Tuesday. The regulator said the measures are designed to deter speculative projects from occupying limited grid capacity as demand for power surges alongside the rapid expansion of artificial intelligence infrastructure.
The news came after Britain experienced a sharp rise in applications for electricity connections, with projects seeking access to the grid requesting 125 gigawatts of capacity over the past year, up from 41 gigawatts previously.
