UK Ties Faster Data Centre Grid Access to Community Tests

The UK Government will require data centre operators to invest in local communities, create local jobs and protect local water supplies before receiving priority grid connections, according to Computer Weekly. Chancellor John Healey introduced the British data centre covenant in the Autumn Budget.

Operators that meet the requirements can receive faster grid connections and, where necessary, permission to build on site power generation. Healey said the policy would support keeping sensitive NHS and armed forces data in Britain.

The UK's data centre pipeline includes 173 projects with more than 14 GW of planned capacity. Scotland recently paused planning and consent decisions for large data centres until national guidance arrives, while requiring environmental impact assessments for projects above 50 MW.

The covenant is part of a wider AI package in the Budget that adds £500 million for AI safety and security and £140 million for the sovereign AI unit, alongside an AI Challenge Prize for public services, Computer Weekly reports. "I'm today launching a new British datacentre covenant with strict tests that datacentres must meet," Healey said.