The government\u2019s bid to accelerate the delivery of new housing and data centres is under threat from the same shared constraint. Electricity is in short supply across large swathes of the UK and it\u2019s hampering the growth of new homes and the IT infrastructure essential for the artificial intelligence (AI) revolution ministers want.<\/p>\n
Data centres\u2019 demand for electricity is already huge \u2013 and is spiralling. A single, large centre can use the equivalent of a town\u2019s-worth of electricity. By 2050, they could collectively consume as much energy as Britain\u2019s industrial users do today, consultancy Turner & Townsend claims in a July 2025 report.<\/p>\n
While the needs of new housing are on a much smaller scale, the popularity of renewables is increasing the strain on our ageing electricity grid and making connection to it more complex. Domestic electricity consumption rose 2 per cent last year, because homes are switching from gas to heat pumps, the Turner & Townsend report claims. Combined with the push for fast-charging points for electric cars and solar panels, the need for more power at a higher voltage will only increase.<\/p>\n
So how will the electricity grid cope with the growing demand from housing and data centres? Which will win out in the jostle for supply? And what is being done to ensure the government\u2019s ambitions are not stymied for want of its favoured renewable energy source?<\/p>\n
\u201cWe anticipate that there will be challenges with supplying a sustained increase in demand for electricity over the coming decades\u201d<\/p>\n
Reading Council spokesperson<\/h4>\n<\/blockquote>\n
These are tricky questions to answer, given the shifting demands and scale of reforms planned for our complex energy system over the coming decades. But there is no doubt that the challenge of securing a reliable supply to homes and industry is huge. \u201cIt\u2019s going to be extraordinarily difficult, because there are so many different parts which have to be coordinated,\u201d says Keith Breed, an associate director in CBRE\u2019s data centre solutions department. \u201cThere\u2019s an awful lot of work in progress. There\u2019s been a lot of announcements. But we don\u2019t quite know how it\u2019s going to follow through.\u201d<\/p>\n
The key challenge is ensuring the UK\u2019s creaking energy grid has the capacity and connections in all the right places. Many renewable energy sources \u2013 such as the Dogger Bank wind farm off the north-east coast of England \u2013 are located far from high-demand areas such as London and the South East. Data Centres are projected to add up to 71 terrawatt hours (TWh) to demand by 2050 as domestic supply creeps up 6TWh a year, according to figures from the National Energy System Operator (see box, below).<\/p>\n
All of this growth must be accommodated by a grid that is already proving a \u201cmajor drag\u201d on decarbonisation, development and economic growth, says Carl Warom, a project manager at Dorset Council who is leading a review of the grid\u2019s capacity in the south-west authority.<\/p>\n
\u201cGrid capacity is the foundation for a lot of growth and investment potential,\u201d he told Construction News<\/em>. \u201cThis is a live issue and not just for development. A lot of retrofit work involves electric vehicle chargers.\u201d<\/p>\n
Dorset is not the only local authority to raise concerns about the constraints the grid currently places on development. South Cambridge Council leader Bridget Smith says grid capacity is now a \u201ckey limiting factor on growth\u201d as demand is expected to triple over the next decade.<\/p>\n
The council she leads is working with the Cambridgeshire & Peterborough Combined Authority to develop a local area energy plan for Cambridgeshire, where 150,000 new homes are planned.<\/p>\n
Reading Council warned in 2023 that electricity capacity issues were threatening the delivery of sustainable new homes, thousands of electrical vehicle charging points, and even a planned solar farm. The Berkshire authority told CN<\/em> that developers were still unable to secure network capacity to install heat pumps in new homes despite some recent improvements.<\/p>\n
\u201cA development of 3,000 homes needs 30-35MVAs and you just can\u2019t get that off the local network\u201d<\/p>\n
Ali Malik, Summix Capital<\/h4>\n<\/blockquote>\n
\u201cWe anticipate that there will be challenges with supplying a sustained increase in demand for electricity over the coming decades,\u201d a spokesperson added.<\/p>\n
Electrical power constraints on economic growth and development are being addressed by the government, its agencies, and the energy supply industry, with investment and reform. The National Grid is upgrading its electricity transmission infrastructure with the Great Grid Upgrade (GGU), which involves 17 major projects and is predicted to create 130,000 jobs.<\/p>\n
The upgrade will create a \u201cmodern, resilient, and secure\u201d electricity grid that can handle cleaner, more affordable energy, the National Grid says. It aims to empower the grid to carry larger amounts of renewable energy to the locations where it is needed. The government wants offshore wind generation to reach 50Gw in 2030 and 140GW
\nby 2050, and for solar power generation to hit 70GW by 2035.<\/p>\nThe upgrades are focused on projects with huge power demands. A new substation in Uxbridge Moor, Buckinghamshire, will connect more than a dozen new data centres to the grid. A 3km connection project between Willesden and Kensal Green will also plug in a new data centre in West London. And a new substation in Biggleswade, Bedfordshire, will create extra capacity to power thousands of new homes.<\/p>\n
Local issues<\/h3>\n
But while these improvements to the electricity grid\u2019s major high-voltage transmission routes will help, many of the capacity constraints are at the local distribution level, where power is stepped down to usable voltages before being wired to homes or businesses. Housebuilders and data centres say delays at this level have led to years-long waits for secure connections to the grid and connection dates as late as 2036 in extreme cases.<\/p>\n
In a bid to fix this, the government this year shook up the \u2018queuing\u2019 system for connections. This previously operated on a first-come-first-served basis, causing the queue to become clogged with speculative developments known as \u2018zombies\u2019. The National Grid says the reprioritised pipeline will accelerate the connections that are \u201cmost ready and most in line with government targets\u201d.<\/p>\n
CBRE\u2019s Breed anticipates the new queueing system will create tensions between data centres, housing developments and renewable energy sources in the battle for connection. \u201cThe government is saying they want to have data centres as a priority because they see a data centre as enabling AI, which will lead to greater productivity in the long term for the UK economy,\u201d he says. \u201cThe way to do that is to look at data centres and AI as a kind of priority. If you\u2019re a renewable energy provider that\u2019s another priority for government.<\/p>\n
\u201cBut local authorities have all sorts of other interests. There will be some who say we don\u2019t want to have data centres there or are concerned about energy use [because] it may take it away from a housing project.\u201d<\/p>\n
National Federation of Builders head of policy Rico Wojtulewicz tells CN<\/em> that access to electricity supply and connection is already a \u201cmassive issue\u201d. Within the constrained system, the federation\u2019s membership of small and medium-sized developers fear larger developments will be prioritised over smaller sites. \u201cThey are going to get more bangs for their bucks in bigger developments,\u201d Wojtulewicz says.<\/p>\n
But Ali Malik, development director at Summix Capital says larger developments are likely to face longer delays because of their higher power demands.<\/p>\n
\u201cSmaller developments of 50 units can find power capacity on the local network,\u201d he says.
\n\u201cBut a development of 3,000 homes needs 30-35MVAs [megavolt amperes] and you just can\u2019t get that off the local network. You have to have an upstream reinforcement in the same way that data centres do and that can take years.\u201d<\/p>\nTech UK, a trade association for the technology sector, says the UK data centre industry has the potential to create 58,000 new jobs in construction and operations over the next decade.<\/p>\n
While its technology sector members welcome the Great Grid Upgrade, they are concerned about \u201cthe timeliness of delivery\u201d, a spokesperson adds. \u201cThe energy sector must keep pace with industry growth. It is crucial that the energy sector evaluates the priorities of industrial growth as well as its own assets.\u201d<\/p>\n
The National Energy System Operator (NESO), which is responsible for ensuring the UK\u2019s energy supply, says the \u201cclean power\u201d drive it is leading for the Department for Energy Security and Net Zero will help cut the need for electric power as demand rises. Many data centres will install their own onsite generators and 20 per cent of new ones will be located in Scotland, where renewable energy supply is plentiful, NESO says.<\/p>\n
\u201cOur Clean Power 2030 advice suggests a once-in-a-lifetime expansion of our electricity network and clean power generation, as part of a new and efficient smart energy system,\u201d a spokesperson for NESO tells CN<\/em>.<\/p>\n
Construction firms can only hope the optimism, investment and reforms driving this shift towards electricity will ease the constraints on housing, data centres and other energy-hungry developments.<\/p>\n
\nOn-demand: the most electricity-hungry sectors in the UK<\/h3>\n
Despite the huge drains on the electricity grid from our great industries, transport networks and commercial businesses, the humble homeowner is the largest type
\nof consumer, according to government figures.<\/p>\nDomestic users account for 29.6 per cent of the 319TWh of demand for electric power. Industrial use takes the second-largest share (27.2 per cent), with commercial firms consuming the third-largest proportion (19.6 per cent).\u00a0 Construction consumes just 0.4 per cent of the national electricity cake, statistics compiled for the Department for Energy Security and Net Zero show.<\/p>\n
Last year, renewable sources accounted for more than half of the electricity supply in Great Britain for the first time, after accounting for 50.4 per cent of generation.<\/p>\n
These proportions and the scale of demand are, however, predicted to change radically over the coming decades as the country pursues renewable energy sources, industry seeks to increase efficiency, and rapidly expanding sectors like data centres create
\nfresh demand.<\/p>\nThe National Energy System Operator (NESO), the public body responsible to ensuring the supply of gas and electricity in Great Britain, says the projected growth of data centres could add up to 71TWh of electricity demand by 2050. \u201cWe are working closely with the government on how best to leverage the tremendous opportunities that also come from this, with data centres potentially helping heat homes and businesses, as well as balance the grid in a smart and secure way,\u201d a spokesperson says.<\/p>\n
Domestic supply is expected to increase by 6TWh a year by 2030, it adds. This increase in household consumption is being driven up by the switch from gas to electrical-powered heating like heat pumps and the push for electric cars.<\/p>\n
NESO says these increasing demands will be \u201cpartially offset\u201d by efficiency requirements in lighting and appliances.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
The government\u2019s bid to accelerate the delivery of new housing and data centres is under threat from the same shared constraint. Electricity is in short supply across large swathes of the UK and it\u2019s hampering the growth of new homes and the IT infrastructure essential for the artificial intelligence (AI) revolution ministers want. Data centres\u2019 …<\/p>\n","protected":false},"author":124451,"featured_media":533802,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[549,79553,559],"tags":[],"class_list":["post-533797","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-civils","category-features","category-long-reads"],"yoast_head":"\n
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