Intelligence Update
Cutting grid connection queues: the UK's pay-to-stay plan
Like many other territories, the UK has a substantial grid connection backlog, leaving data center projects waiting many years for electrical power. The UK's energy regulator, Ofgem, has proposed a solution that may appeal to authorities elsewhere, but which could risk damaging the country's digital strategy: imposing a significant fee to remain in the queue.
According to Ofgem's consultation documents, 125 GW of large power demand projects have applied for connection to the UK's grid — three times the country's 45 GW peak demand — with data center projects making up around 73 GW of this total (see Proposed data centre connection reforms). With around 4 GW of new capacity joining the grid each year, new applications could theoretically expect to wait 30 years for power, if all these applications are genuine and viable.
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