Ofgem proposes refundable deposits for data centres’ power demands

The UK’s energy regulator, Ofgem, is floating the idea of requiring data centres to post refundable deposits, potentially worth hundreds of millions of dollars, before they can reserve spots in the country’s electricity grid queue. The goal is straightforward: stop speculative projects from clogging up the system while genuine developments wait in line. Around 140 data centre projects are currently seeking roughly 50 GW of connection capacity to the British grid. Great Britain’s peak electricity demand sits at approximately 45 GW. In other words, data centres alone are asking for more power than the entire country uses at its busiest moments. A queue that’s spiraling out of control Ofgem launched what it calls a “Call for Input on Demand Connections Reform” on February 13, 2026, with responses due by March 13. The total demand sitting in the connections queue grew from 41 GW in November 2024 to 125 GW by June 2025. That’s a tripling in roughly seven months. Meanwhile, the UK’s actual operational data centre capacity is about 2 GW. Only about 71 of those 140 data centre projects, representing around 20 GW, had even reached a Final Investment Decision by late 2025 or early 2026. The ...