The global data centre sector is expanding, driven by the global race to build artificial intelligence (AI) infrastructure. The UK is positioning itself as a digital hub, but the energy demands of that ambition are raising questions about how hubs will meet their high energy needs.
According to the International Energy Agency (IEA), there were approximately 2.6GW of installed data centre capacity in the UK in 2025. This was estimated to account for 5.1% of the UK’s power demand. This makes the UK’s data centre energy demand share the second highest globally.
This is only expected to grow with a substantial pipeline. 94 data centres are currently under development with a combined estimated value of £36.4 billion. Ofgem reports that 71 of these projects have already reached financial decision, which implies a significant portion of these projects are at the later stages of deployment. The UK government signal support by designating data centres as Critical National Infrastructure in its ambition to make the UK an "AI superpower."
The energy needs
Ofgem, the UK energy regulator, estimate that the 71 projects in the pipeline with financial commitment would require 20GW of electricity. This is a huge need given the UK’s total electricity demand was 37GW in 2025.
Looking ahead, the energy requirements could accelerate under current growth forecasts. For example, Barbour ABI estimate that the number of data centres in the UK is set to increase by a fifth.
The IEA expect data centre electricity demand will rise globally. They estimate consumption will jump from 415TWh (1.5% of total share) in 2024 to reach of 945TWh by 2030, globally. This is equivalent to just over Japan’s total electricity demand.
These estimates have led to concerns over how energy demands will be met and whether data centre energy needs will have knock on effects on energy prices for consumers. Data centre developers have also cited concerns over power availability and the UK’s slow planning processes that are not keeping pace with the demand for data centres. This points to a crucial need for energy solutions to support data centre expansion.
Energy solutions for data centres
The IEA is clear that meeting this demand sustainably will require a diverse mix. Over half of global data centre demand growth is expected to be met by renewables, with nuclear and flexible low-carbon generation delivering the continuous supply that these facilities require.
Purchase power agreements (PPAs) are a key method that data centres are securing their power needs. Bloomberg NEF reports that PPAs are increasingly being driven by data centre demand with 49% of corporate PPAs being bought by tech companies such as Meta, Apple and Google. They are growing to be the single largest source of renewable PPAs, according to Pexapark.
On-site renewable microgrids paired with battery energy storage (BESS) offer another route. The centre for Net Zero found that renewable microgrids could be cheaper to power data centres in the UK when comparing against alternatives such as gas or small modular reactors. We expect microgrids to become a key solution for data centre delivery given the constraints on the grid, adding upsides to onsite solutions, and particularly renewables.
While renewables are a frontrunner, nuclear co-location is also gaining significant momentum. Offtake agreements for Small Modular Reactors (SMRs), which are advanced nuclear reactors with power up to 300MW, have grown from 25GW to 45GW globally in under two years from data centres, according to the IEA. The UK's government-backed SMR programme will also support the roll out of this technology and its role in providing power to the AI boom.
Finally, waste heat recovery is another key growth area. Rather than venting the thermal energy produced by server cooling, operators can redirect it into local district heating networks. A planned London heat network called the Old Oak and Park Royal Energy Network (OPEN) is expected to utilise data centre heat waste to power homes in north-west London. This is one of the first heat networks at this scale but shows that waste heat recovery is an opportunity to support the transition to low carbon heating in the UK.
Talent to meet demand
As demand for data centres accelerates, so too does the need for professionals who understand both energy systems and digital infrastructure, a combination that remains scarce and highly sought after.
At Mint Selection, we support this evolving market across three key areas: helping data centre operators build capability as they move towards vertical integration; supporting utilities, renewable developers, infrastructure funds, and energy companies as they expand their commercial and technical teams; and leveraging our network to connect organisations with the expertise and partnerships needed to deliver projects at scale.
The UK's data centre boom is an energy story. The companies that solve the power question and do so cleanly will define this market for the next decade. To discuss further, reach out at hello@mintselection.com