Housing developments in London face delays due to data centre energy demands

A report from the London Assembly Planning and Regeneration Committee highlights that the rapid expansion of data centres in London is contributing to delays in new housing projects. Data centres, which house powerful computers supporting digital services like streaming and AI, consume significant amounts of electricity. Some housing developments in west London were temporarily held up when the electricity grid reached full capacity. In 2022, the General London Assembly investigated delays in boroughs including Ealing, Hillingdon, and Hounslow, with some projects reportedly facing waits until 2037 for grid connections. Short-term solutions were implemented in collaboration with the National Grid and Ofgem to prevent extreme delays, though setbacks persisted. The report calls for long-term planning for grid capacity, noting that data centres, while consuming less than 10% of the UK’s electricity last year, could increase their usage by up to 600% between 2025 and 2050. One typical data centre can consume as much energy as 100,000 households. With more than half of the UK’s upcoming data centres planned near London, experts urge faster infrastructure upgrades and dedicated planning for data centres to avoid hindering housing growth. The report also recommends that the next London Plan include a dedicated policy for data centres.