UK ministers advance energy plans for AI expansion

Recent discussions on national AI strategy deepened after UK ministers assessed how improved grid access can strengthen investment in emerging data centre clusters.

UK ministers reviewed progress on grid access for AI data centres, focusing on faster connections and new infrastructure to support expanding AI Growth Zones across several regions.

The final AI Energy Council meeting of 2025 took place in London, led by AI Minister Kanishka Narayan alongside energy ministers Lord Vallance and Michael Shanks.

Regulators and industry representatives reviewed how the UK can expedite grid connections and support the necessary infrastructure for expanding AI activity nationwide.

Council members examined progress on government measures intended to accelerate connections for AI data centres. Plans include support for AI Growth Zones, with discounted electricity available for sites able to draw on excess capacity, which is expected to reduce pressure in the broader network.

Ministers underlined AI’s role in national economic ambitions, noting recent announcements of new AI Growth Zones in North East England and in North and South Wales.

They also discussed how forthcoming reforms are expected to help deliver AI-related infrastructure by easing access to grid capacity.

The meeting concluded with a focus on long-term energy needs for AI development. Participants explored ways to unlock additional capacity and considered innovative options for power generation, including self-build solutions.

The council will reconvene in early 2026 to continue work on sustainable approaches for future AI infrastructure.

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