Microsoft’s $3.2 B UK data centre plans threatened by grid delays
Microsoft warns that UK grid delays could derail its $3.2 B data centre investment, risking setbacks for AI and cloud infrastructure expansion.
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UK: Microsoft’s $3.2 B (£2.5 B) investment in UK data centres is at risk due to long delays in connecting to the National Grid. The tech giant revealed that grid constraints could prevent new connections before 2035, creating uncertainty around planned sites in Wales and Northern England.
The warning undermines Labour’s ambitions to establish AI-driven public services, as data centres are crucial for computing power. Prime Minister Keir Starmer has emphasised AI’s role in streamlining government operations.
Microsoft’s UK expansion includes sites in London, South Wales, and North Yorkshire, with over 20,000 advanced GPUs set to arrive by 2026. However, access to power remains a key barrier. A backlog of renewable energy projects has worsened delays, prompting grid operators to prioritise developments with planning approval.
The National Grid predicts data centre electricity demand could grow sixfold in a decade. Tech firms, including Amazon and OpenAI, are pushing for zonal electricity pricing to lower costs in remote areas. High power prices also threaten long-term viability.
The UK government has pledged reforms to accelerate grid connections, with plans to eliminate stalled projects and fast-track essential infrastructure. Despite these measures, Microsoft remains cautious, warning that investment decisions hinge on securing timely power access.
Source: The Telegraph
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