Planned data centre schemes will be prioritised for grid connections under new government proposals.

The move is part of a proposed revamp of how grid connection requests are handled after the current system was swamped with speculative applications from developers.

Applications grew 450% last year leaving some developments a 15-year wait to hook-up to the national energy grid.

Under the changes schemes like data centres and AI Growth Zones, EV charging hubs and electrified industrial sites will get priority.

Speculative applications could also be discouraged by increasing deposit fees for developers.

Kayte O’Neill, Chief Operating Officer at energy system operator NESO said: “the surge in demand applications shows the strength of investment interest across Great Britain, but the demand connections pipeline must reflect projects that are credible, ready and committed to progressing.

“We are committed to working with government, industry and Ofgem to prioritise strategically important projects, while removing speculative applications.

“This will ensure data centres, industrial sites and vital public services can access clean, reliable power, while also supporting growth, innovation and jobs across Britain.”

Planning consultants warned that the move could put housing developers at a disadvantage.

Lawrence Turner, Director, Boyer said: “The Government is right to clamp down on speculative grid connection requests if the queue has genuinely become clogged with projects that were never likely to move forward.

“However, the reforms go much further than tidying up the system. By signalling that sectors such as AI data centres and major industrial projects may be prioritised, ministers are effectively introducing politics into planning, by deciding which types of development get electricity first.

“That has real implications for developers. For many of our commercial and industrial clients, particularly those involved in data centres, logistics and advanced manufacturing, these changes could unlock schemes that have been stuck behind speculative projects in the queue.

“But there is a flip side. Housing delivery increasingly depends on access to grid capacity, and in some areas, power constraints are already slowing development.

“If strategic infrastructure begins to receive preferential access to electricity connections, there is a real possibility that new homes could find themselves competing with server farms for power.

“The question becomes is, when electricity is scarce, do we power servers first, or homes? Both are strategic development.”