Ofgem lifts its forecast
Ofgem has warned that electricity demand from UK data centres could jump 40% higher than it estimated just months ago. The regulator now expects the boom in AI and big-data facilities to place far heavier strain on the National Grid than previously thought.
Around 140 data centres are already queuing for connections that would total 50 gigawatts, with the pipeline potentially reaching 70GW. That compares with the UK’s entire installed generation capacity of roughly 115GW.
Grid upgrades and bill impacts
Meeting this extra load will require major reinforcements to transmission and distribution networks. We recently looked at the £150bn overhaul already planned to accommodate renewables, and the new data-centre demand adds another layer of urgency.
Ofgem has started a review of connection rules, proposing stricter entry criteria to ease bottlenecks. Delays in these upgrades risk pushing household bills higher, as we noted in our piece on grid delays that could add £7.8 billion a year to costs.
What households should watch
The extra demand could also complicate the UK’s 2050 net-zero target if new supply is not clean and timely. While many operators want renewable power, the sheer scale means clean generation must scale up quickly.
For now, the immediate effect on domestic tariffs remains unclear, but any sustained rise in wholesale prices will eventually feed through. We track these shifts at Gas electricity so you can compare deals as soon as new tariffs appear.
