The UK government’s AI Energy Council held its first meeting this week as it tries to find a solution to a tricky problem: the country’s huge AI ambitions seem to be outpacing its energy infrastructure, and its electricity is among the most expensive in Europe, The Register reports.
The council includes energy companies NESO, EDF, Scottish Power, the regulator Ofgem, tech giants Microsoft, Arm, Google and Amazon (AWS), as well as Science, Innovation and Technology Minister Peter Kyle and Energy Secretary Ed Miliband. It was just the first meeting to agree the council’s goals, with the emphasis on the country wanting to build a lot of data centres to become an “AI superpower”. Nuclear power plants should help achieve these goals. Neighbouring France, for example, will rely on them.
According to the Department of Science, Innovation and Technology (DIST), the parties have identified several priority areas, among others. First and foremost, they will ensure that the UK energy system is ready to support new computing infrastructure. They will also promote sustainability and renewable energy. The council will seek to safely integrate AI platforms with the existing energy system and look at ways in which AI can be used to ensure grid flexibility and the transition to zero emissions.
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The decision may not be easy, as the AI Opportunities Action Plan, released in January 2025, calls for, among other things, the accelerated creation of “AI growth zones” across the country, with the inevitable increase in data center energy consumption. According to available data, more than 200 sites are already applying for the status of “growth zones”, capable of accessing at least 500 megawatts (MW) – enough to supply about 2 million homes. The site of a closed power plant has already been proposed for the location of one of these facilities, which will simplify connections to the energy infrastructure.
Where the extra power will come from is still unclear. Last year, energy company National Grid warned that data centre consumption could rise by 500% over the next decade. The Department for Energy says Ofgem and the National Energy System Operator (NESO) will carry out “fundamental reforms” to the country’s grid connection process, which could free up up to 400GW to power large AI data centres. Earlier this year, it was reported that London alone had applications for an extra 400GW, many of which were simply “clogged up the queue”.
Ofgem, meanwhile, says the Clean Power Action Plan is working to deliver more clean energy by building the necessary infrastructure and prioritising projects needed to deliver as much clean energy as possible by 2030.
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The council also has a plan to tackle high electricity prices. It recently noted that businesses are paying 25.85p/kWh – one of the highest in a sample of 28 countries reviewed by the Institute of Economic Affairs (IEA). That’s four times higher than the US, 2.6 times higher than South Korea, and 46% higher than the IEA’s “median” price.
Unusually, the British chip designer Arm is also on the board, as it is the only one of the participants that has no direct connection to energy production and consumption. The reason is the company’s real opportunity to influence the energy efficiency of future AI solutions.
It is noteworthy that a new crisis is brewing on the border between Northern Ireland (Great Britain) and the Republic of Ireland, this time not a political one. Activists oppose the construction of a cross-border power line, as they expect that Ireland, rich in data centers, will “pump” electricity from Great Britain. At the same time, Ireland itself has effectively failed in its attempt to simultaneously preserve the data center market and become “greener.” The United States has directly announced that the “green agenda” is no longer in place and that AI data centers will be powered by coal and gas.