Data centres delaying London housing due to electricity grid constraints

The London Assembly Planning and Regeneration Committee published the report “Gridlocked: how planning can ease London’s electricity constraints”, finding that growing electricity demand — particularly from data centres — is delaying new housing delivery in London and calling for policy reforms.

• Main announcement: The report warns London’s electricity grid is under increasing pressure from data centres and other large energy users; since 2022 parts of the grid in Hillingdon, Hounslow and Ealing reached full capacity, the GLA worked with National Grid and Ofgem to secure short-term fixes that ensured over 12,000 homes were connected by early 2025, and it forecasts data centre growth of more than 200% to 600%, requiring long-term strategic planning.
• Background and recommendations: The Committee urges the Government to introduce a separate use class for data centres and calls on the GLA to include a dedicated data centre policy in the next London Plan; other recommendations include the ICS publishing its data centres forecasting project promptly and the Mayor prioritising retrofit funds for social housing. For media queries contact Daniel Zikmund, Assembly Media Office, 07860647577, daniel.zikmund@london.gov.uk.