UK AI Energy Outlook 2027

The UK's data-centre sector is undergoing rapid, historically unprecedented expansion driven by demand for AI compute. This report examines electricity demand, grid capacity and infrastructure implications entering 2027 and through to 2035 — from DSIT's first official consumption estimates and Ofgem's connection-queue reform to AI Growth Zones, water and carbon pressures, and three demand scenarios to 2035.

• GB data-centre electricity demand reached 4.5 TWh in 2024 — about 2% of the 249.2 TWh consumed from the GB grid — according to DSIT's first official estimates (June 2026).
• UK data-centre electricity demand grew 41% between 2020 and 2024, with London and the South East — particularly Slough — accounting for 77% of consumption (DSIT, June 2026).
• The grid-connection queue grew from 41 GW to 125 GW in under a year, with data centres accounting for at least 80 GW of applications — making connection the principal constraint on development (Ofgem, 2026).
• NESO's Clean Power 2030 central projection puts annual data-centre electricity demand at 22 TWh by 2030 (NESO, November 2024).
• Multiple authoritative forecasts project data-centre demand rising four- to fivefold by 2030, though ranges vary significantly and AI-specific consumption cannot currently be isolated with precision.
• Environmental pressures — water, carbon, land — are growing but remain poorly measured in a UK-specific context, particularly for AI workloads.

• UK policymakers, regulators and DESNZ / Ofgem / DSIT analysts
• Data centre operators, hyperscalers and grid planners
• Institutional investors and infrastructure funds
• Energy suppliers, generators and network operators
• Journalists and researchers covering AI and UK energy

1. 011. Executive summary — key figures, conclusions and priorities
2. 022. UK AI energy position entering 2027
3. 033. UK data-centre electricity demand
4. 044. Data-centre development pipeline
5. 055. Regional development outlook
6. 066. Can the electricity grid support AI growth?
7. 077. Energy supply required for AI
8. 088. Water, carbon and environmental pressure
9. 099. Economic and community implications
10. 1010. Three demand scenarios to 2035
11. 1111. UK AI Energy Index dashboard
12. 1212. Priorities for 2027
13. 1313. Outlook to 2030 and 2035
14. 1414. Methodology, sources and references