Asked by: Ben Spencer (Conservative - Runnymede and Weybridge)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether the Government intends to require data centres above a specified capacity to provide a minimum level of demand flexibility as a condition of grid connection.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Government is considering whether some very large electricity users, including data centres, should provide a defined minimum level of demand flexibility. This could be delivered through measures such as energy storage, low-carbon generation or shifting suitable workloads.
The Government is working with Ofgem, NESO and industry to ensure that any approach supports a secure and efficient electricity system while remaining proportionate and investable.
Asked by: Ben Spencer (Conservative - Runnymede and Weybridge)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, on what date Ofgem and NESO will publish final decisions on demand connection reform; and when the list of strategically important demand projects will be published.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
We are working with Ofgem and NESO to introduce demand reforms to manage speculation, accelerate viable demand connections and enable strategically important projects to be prioritised.
Government consulted on measures to prioritise strategic demand and will publish its response shortly. Alongside this, Ofgem consulted on measures, including a Data Centre Commitment Fee, and will publish its decision in due course.
We intend to publish the Strategic Framework setting out the scope, criteria and process for identifying projects for prioritisation in due course.
Asked by: Ben Spencer (Conservative - Runnymede and Weybridge)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what consideration has been given to the potential merits of requiring new data centres above a threshold capacity to provide on-site dispatchable generation or storage as a condition of connection, as adopted by the Commission for Regulation of Utilities in Ireland.
Answered by Martin McCluskey - Parliamentary Under-Secretary of State (Department for Energy Security and Net Zero)
The Government has considered a range of international approaches, including Ireland’s, as part of its work on integrating growing data centre demand securely and efficiently. Officials are working with industry, NESO and Ofgem to explore a range of options for ensuring large electricity users support a secure and efficient electricity system, including the potential role of on-site storage, low carbon generation and demand-side measures.
Asked by: Ben Spencer (Conservative - Runnymede and Weybridge)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what criteria will be used to designate strategically important demand projects for prioritised grid connection; and whether all sites within AI Growth Zones will be so designated.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
As set out in the Government’s recent consultation on “Accelerating electricity network connections for strategic demand”, the criteria used to designate projects includes national objectives such as growth, jobs, social value and net zero.
Sites within publicly announced AI Growth Zones will be considered for grid connection support on their individual merits, in line with the relevant assessment processes.
Asked by: Ben Spencer (Conservative - Runnymede and Weybridge)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what the average industrial electricity price in the UK was in the latest year for which figures are available compared with (a) France, (b) Germany, (c) the United States and (d) Sweden; and what assessment has been made of its potential effect on data centre investment decisions.
Answered by Martin McCluskey - Parliamentary Under-Secretary of State (Department for Energy Security and Net Zero)
The Department publishes data on international comparisons of non-domestic electricity prices on GOV.UK. The Government recognises that electricity prices are an important factor in data centre investment decisions, alongside access to power, grid connection times, planning and wider infrastructure considerations. The Government continues to work with industry, Ofgem and the National Energy System Operator to improve electricity system efficiency, accelerate grid connections and support investment in strategically important digital infrastructure.
Asked by: Steve Barclay (Conservative - North East Cambridgeshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether National Grid (a) has sought or (b) plans to seek any increase in funding or budget allowances for the Grimsby to Walpole project.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Ofgem assesses electricity transmission investment through its price control framework and decides the efficient costs that can be recovered from consumers. The Government does not assess project costs.
Network companies must manage cost pressures and justify any proposed expenditure or changes to Ofgem, who scrutinises these costs and considers them alongside the benefits of investment, including increased network capacity and lower constraint costs.
The Government and Ofgem are committed to ensuring that the investment needed for a secure, reliable and clean electricity system is delivered at the lowest reasonable cost to consumers. This approach supports timely delivery while maintaining rigorous regulatory oversight.
Asked by: Ben Spencer (Conservative - Runnymede and Weybridge)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, how many transmission-connected demand projects have received Gate 2 offers under the Gate 2 to Whole Queue process; how many are data centres; and what the earliest and latest connection date is offered to a data centre.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The National Energy System Operator (NESO) is currently implementing the Gate 2 to Whole Queue process and connection offers continue to be issued.
Data collected in 2025 and published by NESO shows 72.8 GW of capacity allocated to data centres in the GB connection queue across transmission and distribution, with connection dates extending to the late 2030s. It is not currently possible to provide a count of individual projects.
Government recently consulted on measures to manage the current oversubscription of data centre connections and will publish its response in due course.
Asked by: Shivani Raja (Conservative - Leicester East)
Question to the Department for Business, Innovation, Science and Trade:
To ask the Secretary of State for Business, Innovation, Science and Trade, what steps his Department is taking to tackle structural barriers to private capital investment.
Answered by Chris McDonald - Minister of State (Department of Health and Social Care)
Attracting private investment is crucial for driving economic growth across the UK. The Government is focused on tackling barriers to investment, including on planning, access to finance, grid connections, and skills.
For instance, we are also accelerating delivery through the Planning and Infrastructure Act, cutting delays for major projects. Alongside this, the National Wealth Fund’s £27.8 billion capitalisation is helping to share risk and unlock private investment in infrastructure, clean energy and other growth-driving sectors—creating the conditions for investment to flow more quickly into the UK economy.
We have also expanded the Office for Investment to enable greater coordination across government.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the Department for Business, Innovation, Science and Trade:
To ask His Majesty's Government what assessment they have made of the increase in applications for data centres in the UK; and whether there is adequate provision for connection to the national grid.
Answered by Baroness Lloyd of Effra - Parliamentary Under-Secretary of State (Department for Digital, Culture, Media and Sport)
The government recognises that the demand for data centres is growing, reflecting their critical importance to the economy, public services and national security. This is placing increasing demands on the national grid, and we are taking steps to ensure that development is supported by sufficient energy infrastructure. We have established the AI Energy Council where we work with industry to enable data centre growth and manage challenges to the energy system. We are working with Ofgem, NESO and DESNZ to manage speculative applications for data centre connections, and ensure that network infrastructure can be built in the right places to support demand.
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the Department for Business, Innovation, Science and Trade:
To ask the Secretary of State for Business, Innovation, Science and Trade, whether receipt of (i) support and (ii) priority access to an electricity-grid connection by a data-centre development will be conditional on compliance with minimum standards for (a) energy efficiency, (b) water efficiency, (c) the use of low-carbon electricity, (d) demand flexibility and (e) the recovery and reuse of waste heat.
Answered by Kanishka Narayan - Minister of State (Cabinet Office) (Jointly with the Department for Business, Innovation, Science and Technology)
The Government is committed to supporting the sustainable growth of the UK's data centre sector reflecting their critical importance to the economy, public services and national security. A limited number of strategically important data centres may be supported through the Connections Accelerator Service (CAS) subject to the CAS Project Selection Process. The selection process includes due diligence from DBIST and an evaluation of the project alignment to government priorities including economic growth, jobs and net zero objectives. CAS provides enhanced engagement with network companies to identify opportunities to accelerate connections where possible, but it does not guarantee an earlier connection date.