Transmission Connection Reform: Impact On Data Centres

A power connection is a critical ingredient for any data centre project, and in recent years in Great Britain it has become harder to obtain the power than the land required to develop facilities. It is now apparent that the existing approach to power connections in Great Britain is no longer fit for purpose. The regulator Ofgem has itself acknowledged that the waiting times for new connections are too long and this is one of the factors holding back data centre development.

As part of the UK Government's current focus on data centre development (in part to support its AI strategy), the National Energy System Operator (NESO) has been tasked with reforming the connection process. The reform programme – which has already taken almost two years – reached an important milestone in April, when Ofgem approved the new methodology, and we are now moving into the implementation phase.