MPs warn grid failures could cost Britain the AI race
Author: Joe Peck
The All-Party Parliamentary Group (APPG) for Data Centres has published its Insights Paper, summarising findings from its inaugural ‘Call for Evidence’.
The group is a cross‑party group of UK MPs and Peers that fosters parliamentary understanding of data centre development, examines sector challenges (particularly planning, energy, resilience, and sustainability) and makes evidence‑based policy recommendations to support UK digital infrastructure and economic growth.
Notably, respondents to its Call for Evidence signalled a substantial appetite to invest in UK data centre infrastructure.
Operators including Ark Data Centres, Nebius, Pure DC, and VIRTUS collectively identified £11–12 billion in specific investment plans, while Microsoft’s submission committed a further £22 billion to UK AI infrastructure.
Despite this intent, respondents consistently described a set of interconnected structural barriers constraining the pace and location of development:
• Grid access and energy supply ranked as the sector’s top priority, with 52% of respondents placing it first.
• Planning was placed in the top three by nearly four in five respondents (79%), while energy costs, sustainability, water use, and skills also featured prominently across submissions.
• The APPG is particularly keen to hear further evidence from community representatives, local authorities, and organisations with experience of data centre development outside London and the South East.
Parliamentary comments
Chris Curtis MP, Chair of the Data Centres APPG, notes, “This Call for Evidence shows that while significant investment is ready to support the UK’s expanding AI and digital economy, it remains constrained by grid access, energy costs, and planning inconsistencies.
“The APPG will use this evidence over the coming year to work constructively with stakeholders and the Government to ensure that there is a well-informed view on how data centre infrastructure drives our national economic growth.”
Alison Griffiths MP, Vice-Chair of the Data Centres APPG, adds, “The submissions to this Call for Evidence make clear that the barriers to data centre development are not insurmountable.
“They highlight gaps in the consistent application of planning policy by local authorities, as well as the need to ensure electricity cost competitiveness is felt across every part of the country.
“It is clear there are practical steps the Government can take to strengthen the UK’s leadership in digital infrastructure [and] I look forward to exploring these issues further in our upcoming evidence sessions.”
David Reed MP, Officer of the Data Centres APPG, highlights, “The submissions from academic institutions such as Exeter, Durham, and Oxford remind us that research computing infrastructure is increasingly cost-prohibitive for academia. This gap risks undermining the UK’s long-term international scientific competitiveness.
“As the APPG deepens its work, I look forward to hearing from a broad range of stakeholders in this vital debate and developing practical solutions that support a thriving data centre ecosystem.”
The Rt Hon. the Lord (Philip) Hunt of King’s Heath OBE, Officer of the Data Centres APPG, concludes, “Sustainability is not a secondary consideration for this sector; it is central to its long-term viability and its licence to operate in communities across the UK.
“The evidence on waste heat recovery is particularly striking: the UK is currently capturing just 3–5% of the heat generated by data centres, against a backdrop of a national housing and energy challenge that demands innovative solutions. The APPG will be pressing hard on what policy levers can unlock this opportunity.”
