The UK’s data centre industry is facing significant setbacks due to prolonged delays in securing electricity connections, according to David Sleath, CEO of Segro. Speaking with Times Radio, Sleath highlighted how these delays are stalling major investment and threatening the growth of critical digital infrastructure. Segro, which currently operates 35 data centres across the UK, has ambitious expansion plans that are now hamstrung by what Sleath described as an “archaic” grid connection process, with some developers waiting years to access upgraded power capacity.
“The single biggest constraint is access to power,” Sleath stated, emphasising that these delays are limiting not only Segro’s expansion but also the broader advancement of the UK’s digital economy. The situation has left Segro unable to deploy “hundreds of millions [of pounds] and more” into data centre projects that could otherwise bolster the UK’s status as a digital hub.
Data centres are crucial for supporting the vast and growing demand for cloud services, AI, and digital storage, but their power requirements are substantial. The mounting demand on the UK’s grid was recently highlighted by John Pettigrew, CEO of National Grid, who noted that data centre power use is expected to rise significantly, placing even greater strain on an already stretched system. Pettigrew suggested that innovative solutions, such as developing an ultra-high voltage onshore transmission network of up to 800,000 volts, could help address these bottlenecks while supporting the UK’s transition to net-zero emissions.
The power grid delays also spotlight broader concerns about the UK’s long-term energy security. While Sleath acknowledged that renewables like wind and solar are essential to the UK’s energy strategy, he argued that further investment in nuclear energy and battery storage will be necessary to meet the future demand from data centres and other power-intensive sectors.
In response to these challenges, the UK government has taken steps to address the issue, recently designating data centres as critical national infrastructure. Technology Secretary Peter Kyle’s announcement is part of a broader strategy to prioritise essential digital infrastructure. Additionally, the National Grid is collaborating with the National Energy System Operator, Ofgem, and government agencies to expedite grid connections for projects that support the UK’s net-zero goals and economic growth.
The government has also pledged to streamline the connection process to prevent further bottlenecks for data centres and other critical projects seeking grid access. These commitments aim to reduce the project backlog and foster an environment where data centres can grow in line with the UK’s digital ambitions.
Despite these pledges, the pace of change has been slow, and the industry remains concerned about the impact of grid constraints on its growth potential. Sleath’s comments underscore a pressing need for the UK to modernise its energy infrastructure to keep pace with the demands of a digital-first economy. Without faster access to power, the UK risks missing out on critical investments that could drive technological and economic advancement.
As data centres become indispensable to a digitised economy, ensuring reliable and sustainable power access will be crucial. Whether the UK can overcome these challenges swiftly enough to meet future demand remains to be seen. But with a rapidly evolving tech landscape, the pressure is mounting on the UK government and National Grid to deliver solutions that support both digital growth and energy resilience.
