Proposed data centre connection reforms

Consultation description

We are consulting on proposals to reduce the number of non-viable projects in the connections queue. These two proposals are to introduce a new data centre commitment fee and data centre queue management milestones.

A data centre commitment fee requires relevant data centre projects to secure all of the fee from when they accept an offer to when they are ready to connect. The fee is not returned if the project does not progress according to the rules.

Data centre queue management milestones mean that relevant projects must provide evidence at specific stages. They need to demonstrate:

• credible end-user of the data centre
• procurement of electrical equipment with long lead times, for example switchgear
• financial and technical capability to develop a data centre

This means the relevant network operator can check if a project is on track, at the right stage, and they can impose penalties if it is not.

Our proposals are intended to work together to make sure that we can:

• prioritise viable data centre projects in the connections queue
• reduce the negative impacts of non-viable data centres

This consultation is part of our work with government, NESO and network companies to develop reforms to the demand connections process, structured around three core pillars: Curate, Plan and Connect.

Who should respond  

We want responses from anyone with an interest in the demand connections process, including:

• data centre developers and operators
• network operators

How to respond  

Submit your response using the response template and send it to connections@ofgem.gov.uk by 16 September 2026.

Some of the files are not fully accessible. If you require an alternative format please contact connections@ofgem.gov.uk.