Government consults on reforms to fast-track grid connections for data centres

The UK Government has launched a consultation on proposals to reform the electricity grid connections process, with the aim of accelerating delivery of major projects including AI data centres.

The consultation sets out plans to prioritise “strategic demand” developments and address delays caused by limited network capacity and a growing backlog of connection applications.

Electricity demand in the UK is expected to more than double by 2050, driven by the electrification of sectors such as manufacturing, transport and housing, alongside rapid growth in data centre development linked to artificial intelligence.

However, the current connections system is under increasing pressure, with long lead times for network upgrades and a queue of projects that includes speculative or less-developed schemes. The Government said this is preventing viable and nationally important projects from securing timely access to power.

Under the proposals, new prioritisation mechanisms would be introduced to ensure that key developments including AI data centres, EV charging hubs and industrial electrification schemes are able to connect more quickly.

The reforms include reserving future network capacity for strategically important projects, reallocating capacity when schemes drop out of the queue, and prioritising certain developments in network design and connection processes.

The Government is also considering stricter entry requirements for data centre projects to reduce speculative applications and better align demand with available infrastructure.

The consultation builds on wider reforms to the grid connection system, including the move towards a “first ready and needed, first connected” approach and the introduction of a new Connections Accelerator Service to support delayed projects.

Ministers said the changes are intended to improve fairness across the system, restore confidence for investors and ensure that critical infrastructure can be delivered at pace.

The proposals are expected to be implemented using new powers under the Planning and Infrastructure Act 2025, allowing the Government and regulator Ofgem to directly amend elements of the regulatory framework.

The consultation is open until 15 April 2026, with further reforms expected to follow as part of a broader programme to modernise the UK’s energy infrastructure and support long-term economic growth.