New data from Roadnight Taylor reveals a significant gap between data centre professionals’ expectations for UK grid connection timeframes and the actual timelines being experienced.
Their survey of 50 leading UK data centre developers, investors, and operators found that more than half believe they will achieve a grid connection in just one to two years, despite the reality being that it takes between three to eight years[i].
The new report Powering Great Britain’s Data Centre Ambitions found that over half of industry professionals view securing grid connections as a primary barrier to the success of a project. As a result, when faced with unexpected connection times, more than three quarters (76%) are exploring more economically favourable international regions, such as Africa and Asia, potentially removing key opportunities from the UK economy.
Hugh Taylor, CEO of Roadnight Taylor has commented: “Data centre developers are facing mounting grid connection challenges that can derail even the most promising projects. Those navigating their first large-scale developments often discover too late that grid capacity takes far longer than anticipated, and sometimes years longer than planned.”[ii]
The study also asked industry professionals to list any challenges or delays they had experienced firsthand. Amongst the most prevalent were energy cost and pricing uncertainty (36%), technical issues during the connection process (32%), and the need for infrastructure upgrades (26%). Roadnight Taylor’s research revealed that 84% of industry professionals consider electricity network reliability and resilience as vital, with a further 80% placing the same importance on power availability. Another concern for data centre developments is grid sustainability, with almost all (82%) favouring clean power grids for investments, especially following news from the IEA that electricity demand from data centres worldwide is set to more than double by 2030[iii].
However, despite almost three quarters (74%) believing that national infrastructure project delays are curtailing projects, the researchers found that over two thirds of respondents (64%) remain optimistic that Britain is on track to become a leading data centre powerhouse.
Taylor continues: “The interplay between technical, regulatory and commercial complexities in grid connections creates challenges that most developers underestimate until they’re deep into the process. We’ve seen significant growth in enquiries from clients grappling with these realities, with investors managing stranded capital and development teams wrestling with misaligned timelines and fragmented permitting processes. What’s encouraging, however, is that when these challenges are navigated successfully, Britain has the potential to emerge as a leading data centre destination.”[iv]
The report from Roadnight Taylor comes as the UK’s energy grid faces its biggest shakeup in years, with the UK Government, National Grid, National Infrastructure Committee, and National Energy System Operator (NESO) coming together to reform the grid planning and connections process[v]. The goal is to remove so-called ‘zombie projects’ which are holding up the queue for connections as well as deprioritising projects that are not ready or not aligned with national strategy. Further, the Government states that ‘industries of the future’ including data centres and AI, alongside wind and solar projects, will be accelerated for grid connections[vi].
[i] News | Half of data centre developers massively underestimate grid connection times
[ii] Ibid
[iii] Data centre energy requirements to double in the next 5 years, as AI demands soar
[iv] News | Half of data centre developers massively underestimate grid connection times
[v] Clean energy projects prioritised for grid connections - GOV.UK
[vi] Ibid
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
