Improved coordination between data centres, energy generators and network operators could enable up to £35 billion in low-carbon energy investment and support 5 gigawatts (GW) of green data centre capacity by 2035, according to a report by Aurora Energy Research released on Thursday.
The study warns that surging demand from artificial intelligence and cloud computing could place significant strain on the UK’s electricity grid unless infrastructure development is strategically aligned.
Aurora estimates that a single large-scale data centre can add an electricity load comparable to 250,000 electric vehicles, making them among the most energy-intensive additions to the grid.
“Effective coordination between market participants could drive significant investment in clean energy,” said Brian Potskowski, Aurora’s head of UK and Ireland advisory.
The report argues that a national approach to infrastructure planning—focused on aligning data centre locations with renewable-rich areas and planned grid upgrades—could help alleviate future network congestion and reduce power system costs.
Without intervention, Aurora projects power sector emissions could rise by 14%, while wholesale electricity prices may also increase due to inefficiencies and constraints.
“Access to power is central to the UK’s data centre ambitions,” said Richard Gwilliam, development director at Drax. “Without urgent, coordinated action, we risk driving up electricity costs and impeding decarbonisation.”
David Wildash, chief strategy officer at digital infrastructure firm Apatura, added: “Smart siting of data centres can cut wind curtailment by 9% and system costs by 8%. It’s a win for the whole energy system.”
The report recommends enhanced spatial energy planning and prioritised grid connections to enable timely investments in renewable energy, battery storage, and electricity transmission infrastructure.
The findings come as the UK government faces increasing pressure to balance the rapid expansion of digital infrastructure with its legally binding 2050 net zero targets.
