Rapid growth in number of proposed data centres raises huge concerns for UK climate targets

A sharp increase in the number of data centres needed to meet the demands of AI is prompting concerns about energy demand and the potential impact on UK climate commitments, according to a report by The Times [paywall]. According to the newspaper, Ofgem, the energy regulator, has received connection enquiries for around 140 new data centre projects. Together, they are seeking approximately 50 gigawatts of electricity capacity, a figure that exceeds Britain’s entire recent peak electricity demand of about 45 gigawatts. The scale of the requests has raised questions about whether existing infrastructure planning and carbon reduction pathways are aligned with the speed of digital expansion.

The growth reflects rising demand for AI services, cloud computing and data processing, all of which require energy intensive facilities operating around the clock. Developers argue that new data centres are essential to support economic growth, public services and the wider digital economy. Several global technology companies are understood to be considering further investment in UK capacity.

However, environmental groups and some policymakers have warned that without significant upgrades to grid infrastructure and low carbon generation, the additional load could place strain on the electricity system. There are also concerns that large connection requests may crowd out renewable energy schemes waiting for grid access, slowing the transition to cleaner power sources.

The issue comes at a time when the UK is seeking to accelerate decarbonisation while also positioning itself as a centre for AI development. Data centres are already classified as critical national infrastructure, and there have been calls to streamline planning and grid connection processes to reduce delays. Industry representatives point to long waiting times for new grid connections, which can extend for several years, affecting both digital and non digital developments.

For the workplace sector, the debate highlights the growing interdependence between digital infrastructure and the built environment. As organisations rely more heavily on cloud based platforms, AI tools and hybrid working technologies, energy demand shifts away from individual offices towards centralised computing facilities. This rebalancing of energy use has implications for estate strategies, sustainability reporting and corporate carbon accounting.

Ofgem is reported to be considering reforms to the grid connection queue, including measures to prioritise projects that are ready to proceed. The scale of current applications suggests that decisions taken in the next few years will shape both the UK’s digital capacity and its progress towards legally binding emissions targets.