More than 100 UK Datacentres Plan to Burn Gas to Generate Electricity

Why It Matters

On‑site gas generation threatens Britain’s climate targets and adds strain to an already congested electricity network, exposing a policy gap as AI‑driven data demand surges.

Key Takeaways

• Over 100 UK datacentres request gas connections for power.
• Requests total >15 TWh annually, enough for London 4.5 months.
• Some projects seek permanent 100 MW gas supply, bypassing grid.
• Gas‑fuelled datacentres threaten UK's Clean Power 2030 target.
• Regulators consider reforming demand connections to accelerate grid access.

Pulse Analysis

The rapid expansion of AI‑focused hyperscale datacentres is outpacing the United Kingdom’s ability to connect new loads to the National Grid. Operators, facing years‑long queues, are turning to on‑site natural‑gas generators as a reliable back‑stop, with more than 100 facilities submitting requests that total over 15 TWh annually – an amount comparable to four‑and‑a‑half months of London’s electricity consumption. This trend mirrors similar patterns in the United States, where gas‑fired generators power many AI projects, but it raises unique challenges for a market that has long prioritized decarbonisation.

Environmental groups and regulators are alarmed because unabated gas combustion directly conflicts with the UK’s Clean Power 2030 roadmap, which aims to limit gas‑derived electricity to less than 5 % of total generation. If datacentres rely on permanent gas supply, the carbon intensity of the power sector could rise, undermining emissions‑reduction commitments and potentially prompting stricter permitting or carbon‑pricing measures. The situation also highlights a broader systemic issue: the electricity network’s capacity constraints are forcing high‑energy users to seek fossil‑fuel alternatives, eroding public confidence in the nation’s climate leadership.

In response, Ofgem and the National Energy System Operator are exploring reforms to streamline demand‑side connections, prioritising projects that demonstrate economic viability and alignment with national energy goals. Proposals include faster approval pathways, strategic allocation of grid capacity, and incentives for renewable‑based backup solutions. Industry stakeholders argue that a coordinated approach—combining accelerated grid upgrades with clear policy signals—can reconcile AI‑driven data demand with the UK’s net‑zero ambition, ensuring that future datacentres contribute to, rather than detract from, the country’s climate objectives.