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    Data centres could pay hundreds of millions in deposits for power demands

    Ironside NewsBy Ironside NewsJuly 29, 2026No Comments2 Mins Read
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    Ofgem has proposed new measures which may see builders of knowledge centres made to pay lots of of hundreds of thousands of kilos up entrance.

    The British vitality regulator stated a refundable price needs to be charged for initiatives that wish to hook up with the community, amid mounting demand for connections to the electrical energy grid.

    It’s proposing builders pay a deposit between £237,500 to £712,500 per megawatt – that means information centres in search of 1 gigawatt (GW) of energy must pay lots of of hundreds of thousands up entrance, paid again if the undertaking was accomplished.

    The proposal follows growing opposition in parts of the country to plans for brand new information centres, that are wanted to energy the synthetic intelligence increase.

    Knowledge centres are massive buildings which home pc servers used to retailer and course of information and run the digital providers which energy the web.

    Ofgem has began a session on its proposals, which is able to run till 16 September.

    It stated the quantity of electrical energy capability being requested by initiatives in search of to hook up with the grid had risen from 41 GW to 125 GW up to now 12 months, reflecting a pointy enhance in demand.

    That is considerably greater than double 2025’s peak electrical energy demand in Britain of round 46 GW.

    The regulator stated the initiatives must hit key milestones to maintain their place within the grid connection queue, which has seen a surge in demand.

    An growing variety of centres have been constructed all over the world lately to offer the computing energy wanted to coach and run AI techniques.

    However they’re controversial, particularly for individuals who reside close to them.

    Residents have raised issues about noise, electrical energy demand and the big quantities of water typically used to chill the high-performance chips that generate huge quantities of warmth.



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