The UK Power Grid Has a Phantom Data Center Problem
As data center developers compete for a cut of the hundreds of billions of dollars flowing into the artificial intelligence industry, the queue to join the UK’s power grid has become jammed with projects that will likely never get built. The snarl is exacerbating already years-long wait times for viable projects, and it's messing with attempts to forecast energy demand and plan grid expansions.
In July, the UK’s energy regulator, Ofgem, laid out a proposal meant to force phantom data centers out of the swollen queue. Under the plans, set to be finalized after an industry feedback process that ends in September, developers would be required to put down a steep, nonrefundable deposit that could balloon to hundreds of millions of dollars for the very largest data centers. Developers would also be required to line up customers in advance and prove they have the funding to complete their builds.
However,...
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