AI Data Centres
If you’ve ever visited the UK, you’ll know the stereotype is true: we Brits love to queue. Whether at an airport, a café, or a concert, it’s always first come, first served. And when it comes to connecting to the power grid, it’s been no different. According to the National Energy System Operator (NESO), Great Britain’s interconnection queue has grown tenfold over the past five years, reaching a staggering 700 GW of projects waiting for grid access. This backlog doesn’t just affect new wind and solar projects, which are vital for achieving our clean energy goals, but also has serious implications for data centre developments.
No time to wait
Data centres are critical national infrastructure. Estimates suggest AI could boost UK productivity by as much as 1.3 percentage points per year, equivalent to around £140 billion. Yet grid interconnection queues threaten the ability to scale data centres and computing capacity as needed, with waits ranging from five to ten years in some cases. This issue is not limited to the UK. In Silicon Valley, for example, large data centre developments by Digital Realty and Stack Infrastructure remain empty because power connections are still unavailable, even though Digital Realty secured planning permission six years ago. The pressing question for the industry is clear: how can you skip the queue?
New power-rich markets
Currently, around 62% of Europe’s data centre capacity is concentrated in FLAP-D regions, which are Frankfurt, London, Amsterdam, Paris, and Dublin. These hubs are favoured not only for their low latency but also for the many advantages that come with being close to major cities, such as access to skilled talent and strong connectivity to financial and tech ecosystems. However, this concentration is expected to decline over the coming decade. By 2035, FLAP-D’s share of Europe’s data centre capacity is projected to fall to around 51% as operators increasingly look beyond these traditional hubs in search of markets with more abundant power resources and shorter interconnection queues.
Emerging power-rich markets attracting attention include Belgium, Italy, and the Nordics. The Nordics, in particular, are standing out for their combination of reliable grid capacity and sustainable energy options, with approximately 98% of Norway’s power coming from hydro or wind power. This mix of abundant renewable energy and a stable grid environment makes the region especially appealing for data centre operators seeking to scale high-performance computing and AI workloads without the long waits seen in more congested markets.
Behind-the-meter solutions
Data centres are increasingly managing energy on-site with behind-the-meter solutions, using solar panels, wind turbines, nuclear, or gas turbines. These systems can operate fully off-grid or provide flexibility to reduce demand during peak periods, a process often referred to as dispatch down, where energy consumption is temporarily lowered in response to grid signals or high demand. As small modular reactors are not expected until the 2030s and with gas at odds with sustainability goals, data centres are increasingly turning to renewables.
Renewable generation is intermittent, so it is often paired with battery energy storage systems (BESS). More than just backup power, BESS are now deployed to provide operational flexibility, and in some cases, their use can accelerate grid interconnection. Aligned Data Centers, for example, announced that its Pacific Northwest campus will deploy a 31 MW BESS. By storing and discharging power on-site, the battery system reduces stress on the local grid, giving the regional utility confidence to approve interconnection faster. This allowed Aligned Data Centers to secure grid power years ahead of schedule.
Grid reforms
After 18 months of preparation and reviewing over 3,000 applications, the NESO confirmed on 8 December 2025 the pipeline of projects prioritised for interconnection. Moving away from the historic first-come, first-served system, the reforms now prioritise projects critical to Britain’s energy and industrial needs. As Jonathan Brearley, CEO of Ofgem, notes, these changes “prioritise the projects Britain needs most.”
In 2025, the UK government also launched the AI Growth Zone initiative, designed to support high-demand, data-intensive industries, accelerate AI infrastructure deployment, and ensure energy-intensive facilities can scale efficiently while contributing to grid stability. Together, the grid reforms and AI Growth Zones aim to keep Britain at the forefront of critical infrastructure development, enabling data centres and other high-demand projects to secure timely interconnection while strengthening the resilience of the national grid.
Skipping the queue
One thing is clear: we can’t afford to wait. With data centre demand continuing to grow, securing reliable power quickly is critical for scaling AI and digital infrastructure. Data centre companies are exploring new markets, deploying behind-the-meter solutions, and hoping for continued grid reforms to scale efficiently. In a world moving towards clean energy, battery energy storage systems stand out for their ability to enable renewables, provide flexibility, accelerate interconnection, and allow data centres to bring high-performance workloads online faster than ever. These solutions are giving companies the power to skip the queue and scale without delay.
