- AI data centres could get priority access to the UK electricity grid.
- The grid connection queue surged 460 per cent in early 2025.
- Housing developers warn homes could be pushed further down the line.
Artificial intelligence data centres could soon move to the front of the queue for electricity connections under new UK government proposals designed to deal with soaring demand on the national grid.
The plan is part of a broader attempt to address growing pressure on the UK electricity grid, particularly from AI data centres that require vast amounts of power to operate. At present, any new infrastructure project – from hospitals to factories – must join a virtual queue to secure a grid connection.
That queue has grown rapidly. In the first half of 2025 alone, it expanded by 460 per cent, largely driven by applications from energy-hungry data centres. In some cases, projects reportedly face waiting several years before they can connect to the grid and begin operating.
Officials appear to believe the current system is slowing down projects that could deliver economic benefits. Under the proposed changes, projects that promise stronger economic growth or job creation may be allowed to move ahead in the queue.
The government is expected to consult on rules allowing what it calls “strategically important” developments to skip the waiting list. These could include AI infrastructure, electric vehicle charging networks and industrial facilities shifting from fossil fuels to electricity.
Housing sector warns of unintended consequences
However, the proposal has already raised concerns among housing developers who fear new homes could be left further behind in the race for electricity connections.
The Home Builders Federation said failing to prioritise housing projects could worsen the country’s housing shortage. Steve Turner, executive director at the organisation, reportedly said it would be frustrating if policy decisions effectively favour energy-intensive data centres over homes for families.
“If housing isn’t prioritised, it risks becoming an effective moratorium on new homes in areas where grid capacity is already constrained,” Turner reportedly said.
There are signs the issue may already be affecting development. In December, London Assembly members said several housing projects in west London had been temporarily delayed after the local electricity network reached capacity.
A surge in demand from the AI boom
Pressure on the electricity grid has been building for some time. In November, energy regulator Ofgem warned the queue for electricity connections had grown beyond even the most ambitious forecasts for future demand.
Much of that surge appears linked to data centre projects, though regulators have also raised concerns that some applications may be speculative. According to Ofgem, several projects currently waiting for grid access may lack confirmed financing, planning permission or land rights.
The risk, regulators suggest, is that viable projects capable of delivering jobs and economic growth are being held back by developments that may never actually be built.
At the same time, the scale of future demand remains significant. The UK already hosts nearly 500 data centres supporting digital services ranging from banking systems to online gaming. Together they account for roughly 2 per cent of the country’s electricity consumption.
That figure could rise sharply as artificial intelligence expands. The national grid operator has indicated electricity demand from data centres could increase up to sixfold by 2050 as AI systems require ever greater computing power.
