Skip to content
You can now search across every topic, entity and event.What's new
Data Centre Commitment Fee
ConceptGB

Data Centre Commitment Fee

Ofgem's proposed £237,500-£712,500 per MW deposit to hold a UK grid connection offer.

The Data Centre Commitment Fee is Ofgem's proposal, opened for consultation on 29 July 2026, requiring developers to post £237,500 to £712,500 per megawatt to hold a UK grid connection offer.

Last refreshed: 4 August 2026

Key Question

How much would a 1 GW data centre pay to hold its grid slot?

Timeline for Data Centre Commitment Fee

#12 29 Jul

Ofgem puts a price on the grid queue

Data Centres: Boom and Backlash
View full timeline →

Background

The Data Centre Commitment Fee is a proposal from Britain's energy regulator Ofgem, opened for consultation on 29 July 2026, requiring developers to post a refundable deposit of £237,500 to £712,500 per megawatt when accepting a grid connection offer . It is refunded on energisation and forfeited if the developer abandons the slot.

The aim is to filter speculative applications from a UK connection queue that grew from 41 GW to 125 GW between November 2024 and June 2025, roughly 80 GW of it data centres.

The consultation closes 16 September 2026; no developer has yet paid anything, so the fee's deterrent effect remains untested.

Common Questions
What is Ofgem's Data Centre Commitment Fee?
A proposed refundable deposit of £237,500 to £712,500 per megawatt, payable when a developer accepts a UK grid connection offer.Source: Ofgem
When does Ofgem's Data Centre Commitment Fee consultation close?
The consultation opened 29 July 2026 and closes 16 September 2026.Source: Ofgem
Why did Ofgem propose the Data Centre Commitment Fee?
UK demand-connection applications rose from 41 GW to 125 GW between November 2024 and June 2025, and Ofgem judges much of that will never be built.Source: Ofgem
Source Material