UK's AI Boom: Gigantic Data Centres Strain Energy and Water Supplies

27 August 2026 11 min readSource: thetimes.com
Digital cities: the future of Britain’s data centres

Executive summary

Britain faces a significant surge in data centre development, driven by artificial intelligence, with projections indicating a 36.6% increase in facility numbers. These new 'hyperscale' centres, some the size of neighbourhoods, are set to place immense demands on the UK's energy grid, water resources, and green belt land. Concerns are mounting over their environmental impact and the planning oversight of this rapid expansion.

Reporting based on thetimes.com

Why it matters

The rapid expansion of hyperscale data centres in the UK, fuelled by AI, presents critical challenges for the nation's energy system and infrastructure. This development threatens to strain grid capacity, increase water stress in already vulnerable areas, and risks encroachment on green belt land, potentially undermining carbon targets if developers resort to gas-fired power for grid stability. For UK AI infrastructure, this signifies a period of intense growth requiring significant resource allocation and careful policy navigation.

Sector impact

Analysis by AI Energy Intelligence UK

UK electricity demand

Reporting from the article indicates that energy regulator Ofgem initially projected about 150 data centres could require 50 gigawatts (GW) of power capacity, a figure which the Department for Energy Security and Net Zero later increased by 40%. Subsequently, Ofgem announced 315 data centres were seeking grid connections, though officials suggest developers may be over-applying. Analysis suggests this burgeoning demand, particularly from 'hyperscale' facilities requiring 100 megawatts (MW) or more, will place considerable pressure on the national electricity grid.

UK energy security

The substantial increase in electricity demand from new data centres poses a potential challenge to UK energy security. While some projects aim for renewable energy or even mini nuclear power, the article reports that a number of developers are considering gas-fired power stations to avoid grid connection delays. This 'dash for gas' could impact Britain's carbon targets and potentially reduce the system's reliance on cleaner energy sources, thereby affecting energy security in a low-carbon context.

Businesses

The government, in alignment with US tech giants, supports the need for more data centres to foster digital services, AI, and economic growth. This boom signifies significant investment opportunities, such as Equinix's £3.9 billion investment in the Hertfordshire Campus. However, businesses developing these centres face challenges including securing grid connections, addressing public opposition over green belt use and environmental concerns, and managing substantial energy and water requirements.

Consumers

The article reports that data centres underpin essential digital services like Netflix streaming and ChatGPT queries. While their expansion supports these consumer-facing technologies, the growing demand for energy and water, coupled with environmental impacts such as green belt encroachment and potential reliance on fossil fuels, could indirectly affect consumers through increased utility costs or environmental degradation. Local residents near proposed sites are already experiencing direct impacts such as concerns over noise, air pollution, and loss of local green spaces.

Key statistics

36.6 per cent
Projected increase in UK data centres
at least 500
Number of data centres in UK today (Tech UK)
1,761,500 square metre
Elsham Tech Park size
50 gigawatts (GW)
Ofgem 2026 February data centre power capacity need
40 per cent
DESNZ June 2026 data centre power capacity need increase
315
Ofgem July 2026 data centres seeking grid connection
183
Data centres in planning or under construction (Barbour ABI)
148MW
Newport CWL1 data centre capacity
48
Existing data centres using water cooling (out of 82 in England)
10
Existing data centres using air cooling (out of 82 in England)
24
Existing data centres using hybrid cooling (out of 82 in England)
more than 100,000 cubic metres
Water use by 4 data centres annually
42 million litres per day
Projected future data centre water demand
14 million litres
Current data centre water demand
84 per cent
Planned data centres in water-stressed areas by 2040
£3.9 billion
Equinix investment in Hertfordshire Campus

Figures as reported by thetimes.com. See original source for context.

Quotations

"We are seeing a clear shift towards hyperscale and AI-driven developments"

Steve Shelley

"It’s the scale of new data centres, as well as their growing number, that’s so worrying"

Oliver Hayes

"Nothing should be on the green belt. That’s why the green belt’s been here for 70 years. What was the point of having the green belt if actually it’s just up for grabs?"

Fleur Albrecht

"It is, for me, the death of a town"

Odette Garvey

"They’ve got to go somewhere"

Neil Hannan

"I’m on the fence. I use all these [digital] tools. I guess the question is: where do you put them?"

Mark Bordat

"This is agricultural land and we’re food insecure in this country. If they want to build, there’s lots of brownfield sites everywhere."

one dog walker

"Sadly a small but vocal minority of campaigners have landed in a sort of apocalyptic, dogmatic place"

Jeremy Newmark

"It is worth sacrificing a very small percentage of poor performing green belt land for healthy sustainable economic growth"

Jeremy Newmark

"We absolutely recognise that some residents have questions about the impact new digital infrastructure can have on local communities. We have made it a priority to build relationships with the local community"

James Tyler

Long-term implications

The long-term implications for the UK include a fundamental transformation of the digital infrastructure landscape, with a significant increase in the scale and number of data centres. This expansion will necessitate a robust national strategy to manage energy, water, and land resources effectively. There is a clear risk of increased carbon emissions if developers opt for gas power over renewables, potentially jeopardising net-zero targets. Furthermore, the push for 'hyperscale' facilities suggests a future where digital services are underpinned by increasingly centralised and resource-intensive infrastructure.

Artificial IntelligenceHyperscale computingData centresChatGPTRenewable energyGas power stationsMini nuclear power stationsSolar panelsWind turbines

Frequently asked questions

How many data centres are planned or under construction in the UK?

Reporting indicates that 183 data centres are currently in the planning system or under construction, according to figures compiled by Barbour ABI from local authority documents.

What is the projected energy demand from new data centres in the UK?

Ofgem initially estimated 150 data centres could require 50 gigawatts (GW) of power capacity, with the Department for Energy Security and Net Zero later suggesting a 40% increase on this figure. As of July, 315 data centres were seeking grid connections.

Are data centres impacting the UK's green belt?

Yes, several new data centre projects, including Hertfordshire Campus and West London Technology Park, are proposed for or have been approved on green belt land, raising concerns among local residents and campaigners.

How much water do data centres use for cooling?

Four of 82 existing data centres in England use over 100,000 cubic metres of water per year. Industry body Water UK expects future data centre demand to reach 42 million litres of water per day, up from 14 million litres currently.

Will data centres contribute to carbon emissions?

While some developers propose renewable energy or mini nuclear power, a number are reportedly eyeing gas power to avoid grid connection delays. This could lead to increased carbon emissions, with one 'nationally significant' data centre planning a substantial gas power station.

Original source

This story summarises reporting from thetimes.com. Read the original for full context.

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