Britain’s AI gold rush hits a wall – not enough electricity

Steven

Britain’s AI gold rush hits a wall – not enough electricity

Summary

The UK government is pushing hard to attract AI datacentres, but the country’s electricity system is struggling to keep up. Energy Secretary Ed Miliband says renewables are the path to cheaper, cleaner power, yet decades of underinvestment mean building enough generation and grid capacity will be slow and costly. New datacentres are already being approved around London, but creating the necessary renewable generation, storage and transmission to meet booming demand — while keeping bills and reliability in check — is a major challenge.

The government has proposed measures such as streamlining planning and creating AI Growth Zones where grid connections exist, and Ofgem has approved a multi‑billion pound programme to expand networks. Still, solutions like large‑scale batteries, new nuclear (including SMRs), or rapid renewable rollouts will take years and may push up household charges. The article warns that without swift, well‑funded action, the AI build‑out could be constrained by power shortages or lead to higher consumer bills.

Key Points

  • UK AI datacentre construction is accelerating, especially around London, but grid capacity is lagging.
  • Renewables are the government’s preferred route to secure clean, cheaper power, yet deployment timelines and planning hurdles slow progress.
  • Ofgem has approved a £23.9bn networks investment plan, but the cost will be passed to households through higher charges.
  • Battery storage capacity is tiny compared with peak demand, so storage alone won’t bridge the gap today.
  • Nuclear (large reactors and SMRs) is discussed as a long‑term option, but projects face delays, high costs and a timeline that may not meet near‑term demand.

Why should I read this?

Want to know why the UK’s AI bonanza might stall before it even starts? This piece cuts through the hype — datacentres need huge amounts of reliable power, and Britain hasn’t built the grid or generation to match. If you work in tech, energy, planning or just care about your electricity bill, it’s worth five minutes. We’ve done the legwork and boiled down the painful reality: shiny AI plans meet gritty infrastructure limits.

Source

Source: https://go.theregister.com/feed/www.theregister.com/2025/10/17/in_britain_talk_is_cheap/