Ofgem consults on data center grid queue reforms

Ofgem has launched a consultation on reforms to tackle speculative data center projects in Britain’s electricity connections queue.

• Ofgem proposes a Data Center Commitment Fee and new queue management milestones to ensure only viable projects retain scarce grid capacity.
• Demand connection applications rose from 41GW to 125GW in under a year, with data center projects accounting for at least 80GW; the proposed fee would range from £237,500 to £712,500 per MW and be refunded at energisation or forfeited if the project exits the queue early.
• The consultation is part of Ofgem, DESNZ, and NESO‘s wider Demand Connections Reform programme and is open until 16 September 2026.