U.K. Data Center Developers Eye National Gas Pipelines to Power Projects Amid Grid Delays

Time to read
1 minute
Read so far

U.K. Data Center Developers Eye National Gas Pipelines to Power Projects Amid Grid Delays

Posted in:
0 comments
Data Center with Rows of Server Racks (© IM Imagery / Shutterstock)
Data Center with Rows of Server Racks (© IM Imagery / Shutterstock)

Developers of five major data centers in southern England are exploring the possibility of tapping into the national gas pipeline network to power their facilities amid Britain's grid connection delays.

National Gas, the owner of the UK's gas transmission pipelines, told the Financial Times on Monday, August 25, that the projects have made formal inquiries about building on-site, gas-fired power stations to ensure a steady energy supply to the power-hungry data centers. 

This move highlights the urgent demand for power driven by the artificial intelligence (AI) boom and suggests a potential reliance on fossil fuels to quickly bring data centers online despite tech companies' pledges to reduce carbon emissions by using clean energy to power their projects. 

The five projects would require a combined capacity of approximately 2.5 gigawatts, which is enough to power several million homes, making it the first time data centers have shown interest in connections large enough to necessitate the use of the national pipeline network. 

Ian Radley, chief commercial officer at National Gas, stated that the network is "ready to play a key role in facilitating this critical investment."

The interest in gas connections is seen as a way to bridge the gap between securing real estate and chips and connecting to the grid. 

According to the International Energy Agency, global data center power demand could more than double to 945 TWh by 2045, exceeding Japan's current electricity use, with the increasing energy intensity of AI chips, like those made by Nvidia, exacerbating the issue.

While gas is not intended for full-time use, it would provide a temporary power source, allowing facilities to come online faster. Once a grid connection is secured, the on-site gas station would switch to a backup role.  

This strategy was employed by Elon Musk's xAI, which used gas turbines to initially power its Colossus data center in Tennessee. 

The exploration of gas connections underscores the industry's race to meet escalating demand, even if it means relying on fossil fuels in the short term, a strategy that is quickly becoming popular in the U.S. due to its abundant natural gas reserves. 

In mid-August, American Electric Power (AEP) contracted a US-based pipeline company, Hope Utility, to build a natural gas pipeline to supply a power generation station meant to supply electricity to a data center in central Ohio. 

AEP also signed a separate deal with Aspire Energy Express, the Ohio subsidiary of Chesapeake Utilities, to build and operate intrastate gas pipelines supplying gas to its power plant. A similar trend is also being witnessed in Europe. 

In June 2025, CyrusOne, a data center developer, signed an agreement with European energy company E.ON to build a gas-fired power plant capable of generating 61MW to expand its FRA7 data center in Frankfurt to 126MW.