Artificial intelligence is driving unprecedented investment in data centres across Great Britain, increasing the need for power to support digital infrastructure. But as the number of proposed facilities continues to grow, so does another challenge: Securing timely connections to the electricity transmission network.
Transmission network operators in Great Britain have received a sharp increase in demand connection applications over the last two years. This change has been particularly from large-load customers such as data centres. This has created new pressure on the demand connection process, making it more difficult for viable projects to connect swiftly.
To address these challenges, U.K. energy market regulator Ofgem and the National Energy System Operator (NESO) have introduced reforms to create a more efficient demand queue while allowing strategically important projects to progress more quickly. Understanding these changes is essential for organisations planning new data centre developments.
The Transmission Planning and Power System Analysis team in the U.K. is working with data centre developers to help them understand the demand connection application reforms and expedite their projects’ connection to the grid.
Understanding the Challenge Behind the Queue
The demand connections process is currently facing three interwoven challenges:
The scale of this growth is significant. Since November 2024, contracted demand offers have increased from approximately 41 GW to 125 GW as of June 2025. For context, Great Britain's peak electricity demand was approximately 45 GW on Feb. 11, 2026, although electricity demand is expected to increase significantly in the coming years.
Initial findings from NESO also indicate that data centres represent a substantial portion of the demand queue. Approximately 140 proposed data centre projects, totaling roughly 50 GW of demand, have been identified, with many expected to receive Gate 2 connection offers. More than 70 projects have already reached financial commitment through a final investment decision, demonstrating that a considerable number of mature projects are ready to move forward.
Why Nonviable Projects Matter
One of the most significant issues affecting the connections process is the presence of projects that are unlikely to move beyond the planning stage.
Projects that cannot obtain planning approval or secure financial commitment may remain in the demand queue, occupying positions that could otherwise support viable developments. This delays projects prepared to advance and creates inaccurate signals regarding future electricity demand, influencing long-term network planning and infrastructure investment.
For strategically important developments, including data centres supporting the government's AI Growth Zones initiative, these delays can have broader economic implications.
Reforming the Demand Connections Process
To improve the efficiency of the connections process, Ofgem and NESO are implementing reforms designed to create a queue of projects that are both viable and capable of progressing to connection within the constraints of the electricity system.
The reforms are being introduced in two phases:
As part of these reforms, Ofgem and NESO are evaluating stronger readiness requirements for data centres seeking Gate 2 connection offers or wishing to retain their queue position. Proposed requirements include demonstrating broader financial backing, providing evidence of planning progress or obtaining planning consent before advancing through the process.
A Challenge Extending Beyond Great Britain
While these reforms focus on Great Britain's electricity network, the underlying challenge is not unique to the region. Investment in AI is rushing data centre development around the world, creating unprecedented demand for large-load electricity connections. In many markets where data centre development is further advanced, system operators are already implementing demand-side reforms to manage growing connection queues, address technical constraints and maintain reliable system operation while supporting the transition to lower-carbon energy systems.
Data centres are expected to remain a significant driver of electricity demand for years to come. Developers will need to consider connection strategy earlier in project planning, alongside site selection, permitting and infrastructure development.
The reforms introduced by Ofgem and NESO represent an important step toward creating a demand queue that more accurately reflects viable projects while supporting strategic investment. As additional changes are introduced, organisations that understand the evolving requirements and engage early with network operators will be better positioned to navigate a competitive connections landscape.