UK can meet the rapidly growing electricity demands of artificial intelligence while supporting its clean energy ambitions. As AI adoption accelerates, data centres are expected to become major electricity consumers, with power demand projected to increase from around 6 GW in the near term to as much as 50 GW in the future. The report argues that strategic planning and greater energy flexibility will be essential to expand AI infrastructure without overloading the national grid or increasing costs for consumers.
The framework identifies three key priorities for AI data centres: improving strategic planning and cost-reflective grid connections, supporting voluntary flexible and phased connection agreements, and enabling markets that reward flexible electricity demand. It recommends integrating AI data centre planning into the UK's Strategic Spatial Energy Plan and Clean Power 2030 strategy, ensuring that new facilities are built where grid capacity and renewable energy resources can best support them.
To reduce pressure on the electricity network, the report encourages data centres to adopt flexible operating practices. These include shifting AI workloads away from periods of peak electricity demand, using on-site battery storage and power generation, and supporting distributed solar energy systems in nearby communities. The framework also recommends that AI data centres participate in wholesale electricity markets, ancillary grid services, and capacity markets, allowing them to contribute to grid stability while lowering operating costs.
The report concludes that energy flexibility will be crucial to achieving the UK's AI ambitions without compromising its climate goals. By combining smarter grid planning, flexible power management, and market-based incentives, the UK can support the rapid expansion of AI infrastructure while maintaining reliable electricity supplies and advancing its transition to a cleaner energy system. The recommendations provide a roadmap for balancing technological growth with long-term energy sustainability.
