Investment within the UK data center market is being hampered by prolonged delays in securing electricity connections, according to Segro CEO David Sleath.
In an interview with Times Radio, Sleath voiced his frustration over lengthy waits for grid access, which often extend to several years, preventing Segro from deploying “hundreds of millions [of pounds] and more” into planned data center expansions.
Segro currently operates 35 data centers across the UK. However, its growth plans have faced severe constraints due to the bottlenecks within the UK's grid.
“The single biggest constraint is access to power,” Sleath said, noting that these delays limit not only Segro’s growth but also the advancement of the UK’s digital economy.
Sleuth described the current queue for grid connections as “archaic,” with some developers waiting years for upgraded capacity.
Sleath also raised concerns about the UK’s long-term energy security. Contending that while wind and solar power are vital components of the UK’s energy strategy, further investment in nuclear power or significant improvements in battery storage will be essential to meet the rising demand.
The comments follow warnings from John Pettigrew, the CEO of British utility National Grid, that data center power use is set to grow dramatically, putting further strain on an already-constrained grid.
Pettigrew said the constraints and the need to shift to net zero required creative new solutions. "One approach we think has potential is constructing an ultra-high voltage onshore transmission network of up to 800,000 volts," he said.
The UK government has made some progress on the issue over recent months, with Technology Secretary Peter Kyle classifying data centers as critical national infrastructure.
In addition, the National Grid has committed to overhauling the connection process, working with the National Energy System Operator, Ofgem, and government agencies to prioritize projects supporting net-zero goals and economic growth.
The government has also pledged to streamline access and address stalled projects for data centers seeking grid connections.
