London Data Centres’ demand putting pressure on the electricity network
London Tech Week is placing artificial intelligence, digital infrastructure and future investment at the centre of discussion across the capital. At the same time, new figures published by City Hall show growing demand for data centres is creating increasing pressure on London’s electricity network.
The report shows London remains the UK’s largest data centre hub, with 99 facilities drawing around 760MW of electricity at peak demand. That is roughly equivalent to the power used by 750,000 homes.
Demand is continuing to rise. According to the City Hall report, requests for future grid connections now amount to around ten times the capacity currently used by London’s existing data centres.
Behind cloud services, online banking, public sector systems, streaming platforms, and artificial intelligence tools sits infrastructure that has become increasingly important to everyday life and the wider economy. As digital activity grows, so does the need for the facilities that support it.
City Hall says the impact reaches well beyond the technology sector. Electricity capacity is becoming an increasingly important factor in decisions affecting housing delivery, economic growth and London’s environmental ambitions.
Sadiq Khan is seeking a coordinated response, bringing together boroughs, energy providers, developers, universities and technology companies to consider how future demand can be managed sustainably.
Artificial intelligence forms part of that wider picture. Earlier this year, City Hall launched its AI and Jobs Taskforce to examine how the technology could affect employment across the capital and identify opportunities and challenges for London’s workforce.
London’s role in AI development is also increasing demand for the infrastructure needed to support computing power, cloud services and data storage, reflecting wider growth across the sector.
At Old Oak and Park Royal, one example of a different approach is already taking shape. The OPEN heat network is expected to use waste heat generated by data centres to provide low-carbon heating to homes and businesses, connecting digital infrastructure more closely with the city’s wider energy system.
Future planning decisions are likely to play a significant role in how the sector develops. The next London Plan, due to be published this summer, will include a dedicated policy covering data centres and their environmental impacts. City Hall says the aim is to ensure future development is planned alongside housing delivery and wider infrastructure requirements.
The report was published during London Tech Week, where discussions around artificial intelligence, technology investment and economic growth continue across the capital. Its findings point to a challenge that reaches far beyond the technology industry: ensuring London’s energy infrastructure can keep pace with the demands of an increasingly digital economy.
The debate around artificial intelligence often focuses on software and innovation, but London’s future growth will also depend on whether the infrastructure behind those technologies can keep pace. Read more London technology, business and infrastructure coverage at EyeOnLondon.
Follow us on:
Subscribe to our YouTube channel for the latest videos and updates!
We value your thoughts! Share your feedback and help us make EyeOnLondon even better!
