In short: Great Britain's demand connection queue reached 125 GW by mid-2025, including around 73 GW from data centers, against a national peak of about 45 GW. Ofgem has proposed a commitment fee of £237,500 to £712,500 per MW for data centers of 40 MW and above, returned at energisation.

Great Britain at a glance Queue: contracted demand rose from 41 GW (Nov 2024) to 125 GW (Jun 2025)
Data centers: around 73 GW across some 315 projects, per Ofgem
Proposed fee: £237,500–£712,500 per MW, projects of 40 MW and above
Status: consultation closed 16 September 2026, decision expected by end 2026
Also proposed: data center specific queue management milestones

WHY THE QUEUE EXPLODED

According to Ofgem, contracted demand in the connection queue tripled in under a year, driven largely by data center applications. Many of these projects are speculative: developers secured queue positions early, with little cost to holding them.

OFGEM'S ANSWER: PAY TO STAY

The proposed Data Centre Commitment Fee would be secured when a project accepts its connection offer and held until energisation. It is sized at 2.5% to 7.5% of average project capex, based on Ofgem's benchmark of £9.5 million per MW. It is returned if the project connects and forfeited if it withdraws or misses milestones. For a 100 MW project at the top of the range, that means around £71 million at risk.

WHAT IT MEANS FOR DEVELOPERS AND LENDERS

The fee will filter out part of the speculative pipeline, but it also favours the deepest balance sheets. For lenders, the key question is sequencing: the security is posted before planning consents and local acceptance are secured. See how the UK compares with Germany, Ireland and France and the grid data center hub.

FREQUENTLY ASKED QUESTIONS

What is Ofgem's data centre commitment fee?

A proposed returnable security of £237,500 to £712,500 per MW for data centre projects of 40 MW and above, held from acceptance of the connection offer until energisation and forfeited if the project withdraws or misses milestones.

How big is the UK data center connection queue?

Ofgem identifies around 73 GW of data centre demand across some 315 projects, within a demand queue that reached 125 GW in June 2025, against a peak national demand of about 45 GW.

When will the UK commitment fee apply?

The consultation closed on 16 September 2026 and Ofgem expects to decide by the end of 2026.