Post: Government reforms could see data centres prioritised in connection queue

Government reforms could see data centres prioritised in connection queue

The government is to introduce reforms aimed at tackling the marked rise in speculative grid connection applications, with plans to ensure that strategically important projects, such as AI data centres and new industrial sites, are given priority.

In a consultation, published on 11 March, the government noted that the queue for demand connections to the transmission network increased 460% in the 6 months to June 2025. Speculative applications are inflating the pipeline, delaying connections for strategically important projects. This has contributed to waits of up to 15 years for projects to connect to the grid.

To address this, the government is consulting on measures to tackle speculative applications, address the oversubscribed queue, and accelerate strategically important demand projects including AI Growth Zones within a designated strategic plan which NESO and network companies should prioritise. The government intends to exercise new powers taken in the Planning and Infrastructure Act 2025 (PIA) to expedite these changes, working with Ofgem, NESO, and the network companies to implement actions as quickly as is practicable.

Energy minister Michael Shanks said: “Industries that can bring real economic benefits are ready and waiting to be powered up, but the queue for grid connections has grown exponentially due to speculative applications.” 

As well as prioritising connections for key projects, the government said the reforms will create a fairer, more efficient system by strengthening the conditions for joining and remaining in the grid queue, and streamlining the process for data centre connections, while balancing the needs of the energy system.

A recent Ofgem call for input to grid connection reform found that total contracted offers in the demand queue rose sharply from 41GW in November 2024 to 125GW in June 2025. For comparison, peak electricity demand on 11 February 2026 was 45GW. The energy regulator, suggested reforms could include increasing the financial requirements for developers in the queue, such as deposits or fees, which would be payable if key milestones are not met. Ofgem will shortly be consulting on its preferred conditions.

Views are invited until 15 April.