Net zero could be at risk due to AI data centre demand

A surge in AI-driven data centre development could significantly increase UK electricity demand and complicate efforts to hit clean power and emissions targets.

That’s according to a new report from The Times, which highlights how 140 data centres are currently seeking grid connections with a combined peak demand of 50GW. That figure is striking because it is higher than Britain’s recent peak electricity demand of 45GW, raising questions over how the additional load would be accommodated while the Government is also trying to decarbonise the grid and electrify more of the economy.

The reported figures, disclosed by Ofgem, point to a scale of potential demand that appears to be far above previous assumptions used in clean power planning. According to The Times, the proposed capacity is around five times higher than what had previously been assumed in Government planning tied to the UK’s 2030 clean power target.

That matters because the UK’s decarbonisation strategy depends not only on building more clean generation, but also on managing grid access and network upgrades at pace. If large data centre projects move forward quickly, they could intensify competition for grid connections at a time when renewable energy schemes and industrial electrification projects are already facing delays.

The issue is not simply whether every proposed data centre gets built. In practice, some projects in the connection queue will fall away. However, it’s believed that Ofgem considers a sizeable share of the pipeline to be relatively advanced, suggesting this is more than a purely speculative wave of applications.

The news comes at an awkward time, as it lands at the intersection of three pressures the industry is already grappling with: grid capacity, planning reform, and the pace of clean power deployment. Ministers have been keen to position AI infrastructure as part of the UK’s growth strategy, but the energy implications are now becoming harder to ignore.

The net zero risk is twofold. First, a sharp rise in demand could make it harder to keep pace with clean power targets if network and generation buildout lags behind. Second, if data centre demand contributes to delays for other decarbonisation projects, it could slow emissions reductions elsewhere in the economy.