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World of Software > News > Government seeks national grid upgrade to meet AI power demand – UKTN
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Government seeks national grid upgrade to meet AI power demand – UKTN

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Last updated: 2025/06/30 at 4:54 AM
News Room Published 30 June 2025
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The government is exploring how it can improve the UK’s energy grid to meet the intensive power demands of the growing AI sector.

First convened in April, the AI Energy Council is a joint effort from the Department for Energy Security and Net Zero and the Department for Science, Innovation and Technology, co-chaired by their respective secretaries of state.

The council will meet for their second meeting on Monday, joined by energy providers, tech companies, Ofgem and the National Energy System Operator to determine how much energy will be needed to delivery a planned twenty-fold increase in compute capacity over the next five years.

Increasing the UK’s compute capacity is a top priority for the government, which has bet big on the domestic AI sector to drive economic growth. The Treasury has handed the tech department £2bn to implement its AI Opportunities Action Plan, with a further £1bn designated for increasing compute capacity.

AI is expected to be implemented across numerous industries, with the council to determine which sectors are likely to rapidly adopt AI and what this sudden shift might do to energy demands.

“Giving our researchers and innovators access to the processing power they need will not only maintain our standing as the world’s third-biggest AI power, but put British expertise at the heart of the AI breakthroughs which will improve our lives, modernise our public services, and spark the economic growth which is the cornerstone of our Plan for Change,” said Tech Secretary Peter Kyle.

“We are clear-eyed though on the need to make sure we can power this golden era for British AI through responsible, sustainable energy sources.”

The AI Energy Council’s first meeting was concerned with how advancements in AI could be achieved without compromising sustainability requirements.

“We are making the UK a clean energy superpower, building the homegrown energy this country needs to get bills down for good and create new jobs,” said Energy Secretary Ed Miliband.

“Bringing together the biggest players in AI and energy will help us discuss the role AI can play an important role in building a new era of clean electricity for our country, and meeting the power demands of new technology as we build a clean power system for families and businesses.”

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