Ofgem, the British energy regulator, has proposed a new measure that would require data centre developers to pay hundreds of millions of pounds up front in deposits, ranging from £237,500 to £712,500 per megawatt. The proposal aims to tackle "speculative projects" that take up space in the grid connection queue without any firm intention to connect, with Ofgem saying this would help consumers avoid bearing the risks created by such projects. According to Ofgem's data, electricity demand connections have more than tripled in size in less than a year, from 41 GW to 125 GW. A consultation on the proposal will run until September 16.
Written by the local model on 2026-08-21,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
Ofgem, Britain's energy regulator, has proposed new measures that could see developers of data centres pay hundreds of millions of pounds up front to connect their projects to the electricity grid. The proposal involves a refundable fee between £237,500 and £712,500 per megawatt, with data centres seeking 1 gigawatt (GW) of power facing payments in the hundreds of millions. This follows growing opposition to new data centre plans, which are needed to support the increasing demand for artificial intelligence processing. Ofgem has started a consultation on its proposals, which will run until 16 September. The regulator notes that electricity capacity requests have increased sharply over the past year, from 41 GW to 125 GW, exceeding twice the projected peak demand in 2025.
Written for “Energy Demand Deposits” on 2026-08-31,
grounded in this article and the 0 other(s) covering the same event.
Why this leaning score
The article's language is generally neutral, but it frames Ofgem's proposal as a necessary measure to tackle 'speculative projects' taking up space in the system, which implies that these projects are not viable or responsible. Additionally, the quotes from Eleanor Warburton and Michael Shanks emphasize the need for a grid connections system that works for businesses and economic growth, which leans slightly right.
Written under an earlier scoring contract, which gave a paragraph
rather than checkable quotes. Re-analysing this article replaces it.
Leaning score +0.60 for article 73 · logged 2026-07-30
- Published
Ofgem has proposed new measures which could see developers of data centres made to pay hundreds of millions of pounds up front.
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developers → propose → front
The British energy regulator said a refundable fee should be charged for projects that want to connect to the network, amid mounting demand for connections to the electricity grid.
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that → say → grid
It is proposing developers pay a deposit between £237,500 to £712,500 per megawatt - meaning data centres seeking 1 gigawatt (GW) of power would have to pay hundreds of millions up front, paid back if the project was completed.
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project → propose → front
The proposal follows growing opposition in parts of the country to plans for new data centres, which are needed to power the artificial intelligence boom.
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which → follow → boom
Data centres are large buildings which house computer servers used to store and process data and run the digital services which power the internet.
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which → house → internet
Ofgem has started a consultation on its proposals, which will run until 16 September.
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which → start → September
It said the amount of electricity capacity being requested by projects seeking to connect to the grid had risen from 41 GW to 125 GW in the past year, reflecting a sharp increase in demand.
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amount → say → demand
The regulator said the projects would have to hit key milestones to keep their place in the grid connection queue, which has seen a surge in demand.
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which → say → demand
An increasing number of centres have been built around the world in recent years to provide the computing power needed to train and run AI systems.
But they are controversial, especially for people who live near them.
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who → increase → them
Residents have raised concerns about noise, electricity demand and the large amounts of water sometimes used to cool the high-performance chips that generate vast amounts of heat.
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that → raise → heat
Scotland in particular is seen as a good location for future projects due to its supply of renewable energy to power the centres, with 24 currently in the planning process.
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Scotland → see → process
Ofgem said the plans were aimed at tackling "speculative projects from securing scarce network capacity without any firm intention to connect".
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plans → say → intention
Eleanor Warburton, the regulator's director for energy system design and development, said: "Britain's electricity demand connections queue has more than tripled in size in less than a year, and consumers should not bear the risks created by speculative projects taking up space in the system."
Energy minister Michael Shanks from the Department for Energy Security and Net Zero said he believed Ofgem's actions would "help ensure that viable connection-ready projects can get going and not be held up by speculative applications".
"Britain needs a grid connections system that works for the 21st century and allows businesses to invest and grow, creating jobs across the country," he said.
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he → say → country
