Experts issue warning about overlooked factor that could drive up electricity prices — here's what's happening

New data centers in Great Britain could create a scenario in which demand for power exceeds the nation's current peak electricity consumption.

What's happening?

According to The Guardian, industry watchdog Ofgem discovered, through a consultation on new connection demands to the power grid, that roughly 140 proposed data center projects, driven by AI, could require 50 gigawatts of electricity. This number exceeds Great Britain's current peak demand by 5 gigawatts. 

The group noted a surge in connection applications, most from data centers, between November 2024 and June 2025. 

Connecting this growing number of data centers to the grid could delay other projects, particularly renewable energy projects critical to economic growth and decarbonization.

Why is the rise in data centers concerning?

The price of electricity has risen all around the globe, and consumers are becoming more concerned about how they will pay their energy bills. 

When demand for energy increases, as it does with data centers that consume massive amounts of it, the cost of electricity rises further. 

According to The Guardian, an increase in energy demand in Great Britain could slow the progress the country has made toward creating a power system that is nearly free of carbon pollution, a goal it hopes to meet by 2030. 

In fact, one planned data center project in Lincolnshire could create more carbon pollution than five international airports, which is the opposite of what the country is aiming for.

Data centers also put an incredible strain on local energy grids, contributing to rolling blackouts and power outages for residents living near them. 

There's also the AI driving these data centers to contend with. 

Which of these savings plans for rooftop solar panels would be most appealing for you? Save $1,000 this year 💸 Save less this year but $20k in 10 years 💰 Save less in 10 years but $80k in 20 years 🤑 Couldn't pay me to go solar 😒 Click your choice to see results and earn rewards to spend on home upgrades.

AI can be beneficial and may even optimize clean energy systems, as is the case with DRIFT Energy, which is using AI to help produce green hydrogen.

But in many instances, AI is more harmful than helpful. 

AI chatbots are known to frequently give incorrect answers to questions or make false statements, leading to people getting hurt. Some people have also used AI to harm others, like those who used Grok to create sexualized images of children and women. 

What's being done about data centers?

Some companies are working to power these centers with renewable energy. Microsoft and EDP Renewables North America partnered to develop three solar projects to power data centers, thereby reducing their environmental impact. 

As for Great Britain, Ofgem proposed more stringent financial tests for data center developers to connect with power grids. 

Ofgem is also looking into whether these developers should instead build and pay for their own grid access, which would make things easier for consumers.

Get TCD's free newsletters for easy tips to save more, waste less, and make smarter choices — and earn up to $5,000 toward clean upgrades in TCD's exclusive Rewards Club.