Coordinated planning between data centres, energy generators and networks could unlock £35 billion in low-carbon power investment and support 5GW of green data centre capacity by 2035, according to new analysis from Aurora Energy Research.
The report, published today, highlights how Britain’s accelerating demand for artificial intelligence and cloud computing risks overwhelming the grid unless infrastructure is planned strategically.
Aurora found that each large-scale data centre adds a load equivalent to 250,000 electric vehicles, making them one of the most intensive new demands on the UK’s electricity system.
“Effective coordination between market participants could drive significant investment in clean energy,” said Brian Potskowski, Aurora’s head of UK and Ireland advisory.
The study suggests that a coordinated national strategy could prevent network congestion, reduce balancing costs, and significantly cut wind curtailment.
Without intervention, power sector emissions could rise by 14% and wholesale electricity prices could surge, the report warned.
By aligning data centre siting with high-renewable regions and upcoming grid upgrades, Aurora said the UK could enable predictable investment in low-carbon infrastructure.
Richard Gwilliam, development director at Drax, said: “Access to power is central to the UK’s data centre ambitions. Without urgent, coordinated action, we risk driving up electricity costs and impeding decarbonisation.”
David Wildash, chief strategy officer at 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.”
Aurora concluded that coordinated development could be supported by enhanced spatial energy planning and prioritised grid connections, enabling investment in renewable generation, storage and transmission.
The report’s findings come as Britain seeks to balance the demands of digital infrastructure growth with its legally binding net zero targets.