Ofgem is consulting on a refundable fee for large datacentre developers applying for UK grid connections, aiming to deter speculative requests that delay viable projects. The proposal matters because rapid growth in AI and digital infrastructure is increasing competition for electricity capacity, while companies may seek multiple connection offers for projects they do not ultimately build.

Grid connection applications reportedly rose from 41GW to 125GW in less than a year, with datacentres responsible for at least 80GW of the increase. The proposed Datacenter Commitment Fee would range from £237,500 to £712,500 per megawatt—around 2.5% to 7.5% of average project costs—and would be refunded once a facility starts drawing power, but lost if it leaves the queue early. Developers would also need to demonstrate financial, commercial and procurement progress to retain their place, although industry representatives warn reforms must not discourage genuine investment.