Growing electricity demand across London is now being shaped by the rapid expansion of data centres, which is becoming a key factor contributing to delays in new housing delivery.
A new report from the London Assembly Planning and Regeneration Committee, Gridlocked: how planning can ease London’s electricity constraints, shows how soaring power requirements from digital infrastructure are tightening pressure on an already stretched grid and slowing the pace of new homes across the capital.
The report warns that long-term pressures will intensify as data centres, among the most energy-intensive sectors, are forecast to grow by more than 200% to 600%. A single site can demand as much electricity as tens of thousands of homes, placing heavy, localised strain on the grid and making it harder and more costly to bring forward new housing.
To address this, the report calls for reforms including a separate use class for data centres to support clearer, more co-ordinated planning. It also urges a dedicated data centre policy in the next London Plan, prompt publication of the GLA’s forecasting work and targeted retrofit funding.
Chair of the London Assembly Planning and Regeneration Committee, James Small-Edwards AM, said: “London is at a critical moment, with energy capacity becoming a real constraint on both housing delivery and wider economic growth.
“As demand for power rises, particularly from large energy users like data centres, we need a clear, strategic and long-term approach.”
