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UK data centres turn to gas as grid delays raise climate concerns

Britain’s AI and data boom is increasingly colliding with the country’s clean energy ambitions.

Data Centres

More than 100 UK data centre projects have reportedly requested gas connections

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  • More than 100 UK data centre projects have reportedly requested gas connections because of delays to the National Grid.
  • Operators are seeking over 15 terawatt hours of gas-powered electricity annually, enough to power London for several months.
  • Officials and industry experts say some facilities could end up relying on fossil fuels permanently.

Britain’s rapidly growing data centre industry is turning towards natural gas to keep new facilities running, as long delays to connect projects to the National Grid push operators towards fossil fuel generation instead.

More than 100 proposed data centres across the UK have reportedly requested gas connections over the past two years, according to industry figures discussed at the All-Energy conference in Glasgow. The requests amount to more than 15 terawatt hours of energy annually — enough electricity to power London for roughly four and a half months.


The shift is exposing a growing conflict between Britain’s ambitions to become a global leader in artificial intelligence and its wider climate commitments. Data centres already consume large amounts of electricity to power servers, cooling systems and cloud infrastructure. Now, with grid access becoming increasingly difficult, many operators appear willing to generate their own power by burning gas.

Officials and energy experts attending the conference acknowledged that some projects may rely on fossil fuels not simply as a temporary backup, but as part of their long-term energy strategy.

AI growth collides with Britain’s energy bottleneck

The pressure is being driven largely by a growing queue for electricity connections.

“There’s 100GW of datacentre projects in the queue,” Stuart Okin, director of cyber regulation and AI at Ofgem, reportedly said during the conference.

“Clearly that’s not all going to be able to connect,” he added, reportedly warning that developers unable to secure grid access would need alternative energy sources.

The demand reflects the explosive expansion of artificial intelligence infrastructure globally, as governments and technology companies invest billions of pounds into AI systems, cloud computing and large-scale data processing facilities.

But Britain’s electricity network is struggling to keep pace.

Silvia Simon of Future Energy Networks, which represents UK gas suppliers, reportedly said gas networks had received more than 100 requests from data centre developers seeking direct gas connections.

According to Simon, operators are increasingly looking at gas not only as an emergency backup source, but also as a primary power supply because of difficulties accessing electricity networks quickly enough.

Industry insiders say the approach marks a noticeable shift from previous years, when developers generally avoided long-term gas dependence because of emissions concerns, environmental permits and land-use restrictions.

Climate goals face growing pressure

The growing use of fossil fuels by data centres is likely to intensify debate around Britain’s climate strategy, particularly as the country continues pushing towards emissions reduction targets and cleaner energy systems.

Energy experts say the issue reflects a wider global problem emerging alongside the AI boom. In the United States, several large-scale AI and cloud computing projects already rely heavily on gas-fired electricity generation.

Some proposed US data centre developments linked to companies including Meta, Microsoft and xAI are reportedly expected to produce carbon emissions exceeding those of entire countries such as Morocco.

Environmental groups have also raised concerns about the local impact of methane-powered generators supporting AI infrastructure projects in parts of the US.

Analysts say Britain could now face similar tensions as the digital economy expands faster than clean energy infrastructure can support it.

An energy consultant working in the sector reportedly said that over the past year, an increasing number of UK data centre projects had begun considering long-term gas-powered operations rather than treating fossil fuel generation as a short-term fix.

The challenge for policymakers is becoming increasingly clear: Britain wants to attract AI investment and expand digital infrastructure, but doing so may require far more energy than the current grid can quickly provide.

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  • Britain now has the highest property tax burden among major advanced economies.
  • Businesses tied to shops, offices and warehouses say rising taxes are hurting investment plans.
  • As digital firms operate with lighter footprints, pressure is growing on the UK’s physical economy.

Britain’s economy has changed dramatically over the past decade. Offices are quieter, shopping has shifted online and many companies now operate with fewer physical assets than ever before. Yet the country’s tax system still leans heavily on land, buildings and physical space.

From business rates and council tax to stamp duty, property-linked taxes now generate roughly £100 billion ($136 billion) a year for the government. According to analysis by Ryan, a tax firm, the UK has the highest property tax burden among major advanced economies, with such taxes accounting for 3.7 per cent of gross domestic product. France and Canada follow at 3.4 per cent, while Belgium and Luxembourg stand at 3.3 per cent.

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