UK reforms to prioritise grid connections for AI data centers

The UK government is consulting on reforms to clamp down on speculative electricity grid connection applications and to prioritise strategically important projects including AI data centers and industrial sites.

• Main action: The government is consulting on measures to tackle speculative applications after the queue for demand connections to the transmission network grew 460% in the six months to June 2025, with waits of up to 15 years. Reforms would strengthen conditions for joining and remaining in the queue (Ofgem to consult on conditions such as increased deposits or fees), enable publishing a list of strategically important projects (including AI Growth Zones), and prioritise connections for projects close to high-capacity parts of the grid. The government is also delivering the Connections Accelerator Service and relying on powers from the Planning and Infrastructure Act.
• Background and details: The National Energy System Operator (NESO) has cut the clean energy connections queue by over half and is issuing new grid connection offers; reforms aim to unlock £40 billion a year of mainly private investment and save billpayers £5 billion by avoiding unnecessary grid reinforcement. Planned AI Growth Zone measures include priority access to capacity, significant electricity bill discounts for some locations, and support for developers to connect their own high-voltage lines and substations.