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Energy Supply: Data Centres

Asked by Mr Angus MacDonaldLiberal DemocratDepartment for Energy Security and Net ZeroTabled Answered 9 December 2025UIN 96026

The question

To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the potential impact of electricity demand from AI-related data centres on electricity prices.

Answered by Michael Shanks

The Government is committed to ensuring electricity networks can meet rising electricity demand, including from data centres, and to protecting consumer bills. Locating data centres where there is excess renewable generation could lower constraint costs, thereby reducing overall system costs and consumer bills. The Government has set up the AI Energy Council jointly chaired by the Secretary of State for DESNZ and Secretary of State for DSIT to look strategically at the energy case for AI and data centres across the UK.

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