Data centres could pay hundreds of millions in deposits for power demands
📰 source: bbc_business · 💼 business
ofgem, the british energy regulator, has proposed that data centre developers pay a refundable deposit of between £237,500 and £712,500 per megawatt to connect to the electricity grid. for a 1 gw data centre, that means hundreds of millions of pounds upfront, returned if the project is completed.
the proposal follows a surge in connection requests — from 41 gw to 125 gw in the past year — far exceeding britain's peak electricity demand of 46 gw. ofgem says the deposits are meant to deter speculative projects from locking up grid capacity without serious intent. a consultation runs until 16 september.
critics and residents have raised concerns about noise, water use, and electricity demand from data centres, which are booming due to ai. scotland, with its renewable energy, is a favoured location, with 24 centres in planning. eleanor warburton, ofgem's director, said consumers shouldn't bear risks from speculative projects.
why it matters: new uk energy regulator fees could force data centres to pay huge deposits upfront, slowing britain's ai-driven infrastructure buildout.
source: bbc_business
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