Ofgem proposes refundable deposits for data centres’ power demands

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Britain’s energy regulator Ofgem is proposing refundable deposits from data centres before they can reserve capacity on the electricity grid. Around 140 data centre projects are currently seeking approximately 50 GW of connection capacity, while the UK’s peak electricity demand stands at about 45 GW. The connection queue tripled in just seven months, growing from 41 GW in November 2024 to 125 GW by June 2025. Ofgem launched a consultation on February 13, 2026, with initial proposals expected in spring 2026, and final rules likely taking shape by late 2026 or early 2027.

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