- The UK risks losing its AI edge unless planning reform and grid upgrades are accelerated.
- Digital Realty highlights quadrupling energy demand for data centres by 2030 amid slow grid response.
What happened: Digital Realty warns of gridlock risk to UK AI growth
Digital Realty’s UK & Ireland MD, Séamus Dunne, told The Times that the UK’s ageing electricity network—especially in the southeast and northwest—is struggling to meet surging demand from AI‑ready data centres. He warned that without rapid grid upgrades, potential AI infrastructure investments could be diverted abroad. The warning comes as energy requirements for data centres are forecast to quadruple by 2030.
Furthermore, a report by the University of Cambridge’s Minderoo Centre cautions that unchecked AI expansion—without simultaneous infrastructure and climate safeguards—could derail the UK’s net‑zero ambitions and strain national energy grids.
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Why it’s important
This situation underscores a pivotal tension in the UK’s AI strategy: technological ambition outpacing physical infrastructure. Without urgent grid upgrades and faster planning approvals, costly AI data centre ventures may relocate, undermining national competitiveness. Meanwhile, policymakers risk setting off a “boom-and-bust” scenario, investing heavily in AI without securing the needed energy foundations.
Moreover, the climate implications are serious. The Cambridge report suggests massive increases in AI-related energy consumption could balloon carbon emissions unless addressed proactively. The UK must therefore balance its AI aspirations with strategic infrastructure investment and climate goals—failing which its AI leadership claim may remain a hollow ambition.
