Investment in data centers in Britain has been hampered by delays in securing electricity supplies, according to David Sleath, chief executive of Segro, one of the country’s largest commercial property developers.
Speaking on Times Radio, Sleath expressed frustration at the long wait times for network connections, which can stretch to several years, preventing Segro from investing “hundreds of millions and more” in new data centres.
Segro, which already operates 35 data centers in the UK, has ambitious plans to expand, but these are being hampered by bottlenecks in the national electricity grid. “The biggest constraint is access to power,” Sleath said, emphasizing that these delays are not only holding back Segro’s growth, but also Britain’s digital progress.
Data centers, which support essential digital services from streaming and online shopping to AI development, require significant power for their high-energy equipment, which requires specialized network connections to function safely. However, the current queuing system for obtaining a grid connection is described by Sleath as ‘archaic’, with developers facing years of delays in upgrading capacity.
In addition to immediate needs, Sleath also expressed concerns about Britain’s longer-term energy security. While he sees wind and solar energy as crucial components of the country’s energy strategy, he suggests that further investment in alternative sources, such as nuclear power, or significant improvements in battery storage will be necessary to meet future demand.
The government has recently taken steps to recognize data centers as critical national infrastructure, with Technology Secretary Peter Kyle deciding last month to classify these facilities as such. The decision comes as several US companies plan to invest £6.3 billion in new UK data centres, underscoring the demand for reliable infrastructure to support the fast-growing digital economy.
National Grid has committed to improving the connection process and pledged to work with the National Energy System Operator (Neso), Ofgem and the government to reform the connection system and prioritize projects that support net zero targets and economic growth. A government spokesperson reiterated this commitment, noting that efforts are underway to clear stalled projects and streamline access for data centers seeking network connections.
As demand for data centers continues to rise, Britain faces a pivotal moment in upgrading its infrastructure to support both immediate needs and long-term digital ambitions.