The UK energy regulator Ofgem has proposed tougher conditions for data centers seeking connections to the national power grid. Developers would need to place a substantial nonrefundable deposit, line up customers and demonstrate that they have enough funding to finish construction.
The measures target “phantom” projects that reserve grid capacity despite having little chance of being built. Their presence makes energy demand harder to forecast and lengthens waits for viable sites. For the largest proposed data centers, the deposit could reach hundreds of millions of dollars. Ofgem plans to finalize the rules after an industry feedback period ending in September.
The regulator must balance queue discipline against the risk of driving legitimate investment elsewhere. AI infrastructure requires large and reliable power connections, and grid congestion already affects projects in the United States and Europe. The proposal does not create new electricity capacity by itself; it is designed to make the existing queue reflect projects with credible financing and customers, so planners can prioritize connections more realistically.