Aurora Energy Research has released a report examining the impact of data centre expansion on the energy system and the crucial importance of strategic coordination between data centres, networks, and generators in the UK. This approach could unlock £35bn in low-carbon power investment, the report states.

The report is the result of several months of in-depth analysis and engagement with 14 key stakeholders across data centres, policy makers, networks, and energy generators. It comes at a time when the unprecedented expansion of artificial intelligence is dramatically increasing power demand on the grid.

Strategic collaboration between stakeholders could not only unlock billions in low-carbon power investment but also support approximately 5GW of green data centre growth over the next decade, according to the report. Strategic planning tools, such as NESO’s Strategic Spatial Energy Plan, have the potential to support a coordinated energy system, but only if they evolve to include major new demand sources like datacentres alongside traditional supply planning.

The report further assesses that locating datacentres away from London hubs and behind constrained transmission boundaries (such as in Scotland) could reduce network balancing costs and wind curtailment by up to 9 per cent.

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