Why is Ofgem concerned about data centers' grid connection applications in the UK?

Ofgem is concerned because data centers are reserving large amounts of grid capacity years before they actually need it, leading to underutilized network capacity while other viable projects wait in long connection queues; this distorts signals for network investment, delays ready-to-proceed projects, and threatens economic growth, the energy transition, and AI ambitions.

What specific measures is Ofgem considering to address the data center grid connection bottleneck?

Ofgem is developing reforms—including financial commitment requirements, stricter readiness tests, and other steps—aimed at removing non-viable data center projects from the connection queue, in collaboration with the government and the National Energy System Operator.

UK Energy Regulator Warns Data Centers Are Hoarding Grid Capacity

Jun 11, 2026

UK regulator Ofgem warns data centers are reserving excessive grid capacity, creating bottlenecks for renewable projects and threatening economic growth, prompting planned reforms to clear the connection queue.

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UK Energy Regulator Warns Data Centers Are Hoarding Grid Capacity

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