Ofgem Proposes 9-Figure Deposits to Purge 73-GW Phantom Data Centers From UK Grid Queue
Updated
Updated · WIRED · Aug 27
Ofgem Proposes 9-Figure Deposits to Purge 73-GW Phantom Data Centers From UK Grid Queue
1 articles · Updated · WIRED · Aug 27
Summary
Hundreds of millions of dollars in nonrefundable deposits could be required from the largest UK data center projects under Ofgem’s July proposal, alongside proof of customers and financing before grid access is granted.
73 gigawatts of new data center demand entered the queue as total requested capacity jumped to 125 gigawatts by June 2025 from 41 gigawatts in November 2024, leaving viable projects stuck in years-long delays.
Ofgem is trying to fix incentives that made queue entry cost only a few thousand dollars, encouraging speculative applications and even land-flipping tied to scarce grid connections.
September feedback will shape the final rules, but industry groups warn fees set too high could push investment to the US or other European markets and squeeze out smaller AI-focused operators.
A cleaner queue would give grid planners a more realistic demand picture, helping target network upgrades and improving the UK’s longer-term chances of capturing AI infrastructure spending.
Could Ofgem's massive multimillion-pound grid deposits accidentally hand total control of the UK's AI future exclusively to deep-pocketed tech monopolies?
Can AI data centers transform from grid-clogging burdens into flexible assets that actually prevent blackouts during national energy crises?