Rachel Cary
Head of Industrial Strategy at Energy UK
Data centres are major players in the GB energy system and could account for 12% of all GB electricity demand by 2050.
With network connection requests for data centres skyrocketing, sustainability must be at the forefront of strategic system planning. Yet the Government’s narrow focus on connections and lack of a wider strategy to manage the impacts of data centres does not reflect this reality.
Making data centres sustainable
The race to connect data centres to the network is clearly a priority, but the consequences for other users are unclear. We risk data centres being prioritised over other critical parts of the economy such as housing, transport, manufacturing and even clean power projects. There is concern that data centre operators will turn to on-site conventional gas generation to guarantee constant supply to meet significant electricity demand.
Strategic demand planning must be led by how data centres contribute to sustainable growth
This doesn’t need to happen. AI has successfully turned data centres into flexible, grid-responsive assets that benefit the energy system. A bold strategy for data centres, focused on making them an asset to the energy system, can reduce system costs and energy bills, accelerate connections for other demand and deliver global leadership without failing on climate.
Utilising waste heat
Alongside high electricity demand, data centres produce substantial amounts of heat. With forward planning, this heat can be recovered to supply surrounding communities. Government funding has been directed towards projects where waste heat from data centres is heating over 10,000 homes and 250,000m2 of commercial space.2 Solutions like this are essential, but require strong, joined-up policy to make it happen.
Strategic demand planning must be led by how data centres contribute to sustainable growth. To avoid a mismanaged race to maximise the number of data centres, the Government must set out what it wants from data centres before they connect and consider these sites as part of the solution, not as a necessary problem.
[1] NESO (2025), FES: Data Workbook 2025; Energy UK analysis
[2] Hemiko (2025), OPDC announces Hemiko as development and funding partner for innovative new Heat Network. tinyurl.com/tnfjt6wh.
