Datacentres face upfront fees for grid access as Ofgem tackles 73GW queue

Datacentre developers will have to stump up significant upfront fees or financial security to connect to Britain’s electricity grid under proposals announced by Ofgem on 29 July 2026.

The plan targets a queue of 315 datacentres that together require 73 gigawatts of capacity — nearly 30 GW more than the country’s peak demand of 45 GW.

Applicants would need to provide letters of credit, bonds or cash deposits, ensuring that only serious projects proceed and speculative applications are weeded out.

Ofgem says the current backlog is unsustainable because many queued projects are unlikely to be built yet block access for viable schemes.

The proposals are open for consultation. If adopted, they could reshape how operators finance grid connections and speed up access for critical infrastructure.