The UK’s AI ambitions depend on data centres, and data centres depend on power. Future data centre demand could rise from around 2 GW today to 6 GW by 2030 — or up to 50 GW if projects in the grid connection queue materialise. The challenge is how to connect this strategically important demand quickly, without increasing costs for consumers, worsening network constraints, or undermining clean power goals.

Using an open-source power systems model of Great Britain, Centre for Net Zero tested how flexibility could help data centres connect faster and reduce pressure on the grid. We find that combined flexibility measures could reduce peak net demand by 3 GW in 2030. Different approaches play different roles: shifting compute workloads can reduce rare system peaks, while onsite and distributed solar and batteries provide more regular reductions in grid draw and can lower system costs.

The report also finds that public acceptance is likely to depend on whether data centre growth delivers visible local benefits. Exploratory synthetic audience research suggests support is strongest when developers help fund rooftop solar and batteries for nearby homes and businesses.

Key Recommendations

① Strategic planning and cost-reflective connections. Integrate data centre siting and flexibility assumptions into the Strategic Spatial Energy Plan (SSEP) and Clean Power 2030 planning as part of strategic demand forecasting. Support cost-reflective connection and tariff arrangements, including by enabling more self-build connections and alternative delivery models.

② Faster connections through flexibility. Support voluntary flexible and phased connection agreements — including non-firm and partially firm arrangements — to enable earlier connection dates through demand reductions during critical peak periods. Identify areas on the network that could benefit from solar and battery deployment, with hyperscalers funding these resources in exchange for faster connection agreements. Report a data centre's capacity for all types of flexibility through new metrics.

③ Markets for flexible demand. Enable participation for data centres and linked virtual power plants in wholesale markets, ancillary services, and the capacity market, alongside ensuring that market rules — such as notification periods and dispatch requirements — are compatible with data centre operations. Incentivise further through carbon reporting frameworks for flexibility.