Common Questions

What is Ofgem's role in the UK data centre grid crisis?

Ofgem oversees the Curate programme to reform the UK grid-connection queue, and has launched a consultation on AI and data centre electricity demand. Its regulatory framework governs the queue that currently holds 50 GW of data centre demand against a 45 GW national peak.Source: Lowdown data-centres briefing

What is the Curate grid reform programme?

Curate is an Ofgem-NESO programme to remove speculative grid-connection applications from the UK's bloated queue. By clearing applications that were never likely to build, it aims to free up genuine capacity for committed projects including data centres and renewables.Source: Ofgem

How many years will it take to connect a new data centre to the UK grid?

UK data-centre operators report connection times of many years — the NESO queue held 50 GW of data-centre demand against a 45 GW national peak load as of early 2026. OpenAI cited this grid constraint alongside high electricity costs when pausing its Cobalt Park Stargate site in April 2026.Source: Ofgem / Lowdown data-centres briefing

Background

Ofgem (the Office of Gas and Electricity Markets) is the UK's independent energy regulator. In the context of the data centre boom, it is the oversight body for the Curate queue-reform programme, which aims to strip speculative grid-connection applications from a queue that had reached 125 GW of contracted demand offers by mid-2025. Ofgem also launched a consultation specifically on AI and data centre electricity demand, recognising that the sector's growth trajectory is the single largest variable in UK electricity system planning.

Ofgem's regulatory REMIT covers both consumer-facing tariffs and the rules governing network operators. Its decisions on connection charges, queue management, and behind-the-meter rules directly shape the economics of data centre development in Britain. The agency's ability to move quickly is constrained by statutory consultation requirements, which means its responses to the AI infrastructure surge lag the market by months or years. OpenAI's pause of its Cobalt Park Stargate site cited the "unfavourable regulatory environment" as a factor, a phrase widely interpreted to include Ofgem's framework.

The Curate programme is significant: by removing speculative applications, it could free up genuine headroom for committed data centre projects and renewable energy generators that are also blocked in the queue.