Eager to free up grid capacity, the plans are part of a wider programme of reforms to ensure network capacity is used for projects that are ready and able to connect, the energy regulator said on Wednesday.

It will confront unviable, stalled, and speculative projects and propose a new Data Centre Commitment Fee, which would be paid by large data centre developments when accepting a connection offer. The fee would be refunded when the project reaches energisation and forfeited if the project exits the queue early, it added.

The proposal comes as demand connection applications have soared across the UK from 41GW to 125GW in less than one year (November 2024-June 2025). Such a large rise has largely been driven by data centre projects, which currently account for at least 73GW of the pipeline.

“Britain’s electricity demand connections queue has more than tripled in size in less than a year, and consumers should not bear the risks created by speculative projects taking up space in the system,” said Eleanor Warburton, director for energy system design and development at Ofgem. “The connections system must work for consumers and for the projects that are ready to invest, build and connect. Where speculative projects take up space in the queue, they can delay other schemes and create uncertainty about future network needs.”

Ofgem expressed concerns over a significant number of projects currently in the queue may not proceed, leading to misleading signals about future network investment needs. It also slows down projects that are ready to connect.

The consultation comes as demand for electricity connections continues to grow as multiple sectors and new large-scale power users seek grid access. In the first half of 2025 alone, the grid connection queue in the UK grew 460%, leading to years-long grid waiting times and rising concerns over the country meeting its climate targets.

Speaking to The Guardian earlier this year, Stuart Okin, director of cyber regulation and AI at Ofgem, said: “There’s 100GW of data centre projects in the queue … Clearly that’s not all going to be able to connect [to the grid]. If a project isn’t going to get a connection, it is going to have to come up with an alternative method.”

Reforms are expected to help protect consumers, improve confidence in network planning and clear pathways for viable projects to connect faster. Since the introduction of wider connections reform measures, roughly 7.8GW of projects have been accelerated by an average of six years. Ofgem said this is helping to bring forward investment and enable projects to connect much sooner than would otherwise have been possible. It expects reforms to have a similar impact on demand connections.

“We’re consulting on a new data centre commitment fee and stronger requirements to ensure projects demonstrate real commitment before securing scarce network capacity. These reforms will help free up capacity for viable projects, improve confidence in network planning and support faster connections where they are needed most,” Warburton added.

“By helping projects that are ready to move forward and connect more quickly, these reforms can also support economic growth, bringing forward investment, enabling businesses to be built and expanded sooner and ensuring the benefits of that investment are felt across the economy more quickly.”

The consultation by Ofgem is open now until 16^th September 2026.

Energy Minister Michael Shanks added: “Britain needs a grid connections system that works for the 21st century and allows businesses to invest and grow, creating jobs across the country. That’s why this government reformed the connections process and why Ofgem’s actions will help ensure that viable, connection-ready projects can get going and not be held up by speculative applications.”

Related stories

Data centres continue to guzzle electricity – what’s the industry doing about it?

UK’s ‘largest AI supercomputer’ by Nscale could be delayed… again

If you build here, is Britain really backing you? The new reality of data centre planning