The AI Boom Is Driving Huge Demand for Data Centres – What Does It Mean for the Electrical Industry?
Artificial Intelligence may be dominating the technology headlines, but behind every AI platform sits something much more physical: huge data centres requiring enormous amounts of electrical power.
As AI, cloud computing and digital services continue to grow, the UK is experiencing a major increase in demand for new data-centre infrastructure – and this could create significant opportunities across the electrical industry.
Data centres are consuming more electricity
According to Government figures, data centres consumed approximately 4.5TWh of electricity in Great Britain during 2024 – around 2% of total grid electricity consumption.
That was already a 41% increase compared with 2020.
With AI requiring increasingly powerful computing infrastructure, electricity demand from the sector is expected to continue growing.
The scale of proposed development is becoming clear.
Ofgem recently revealed that applications for electricity demand connections increased from 41GW to 125GW in less than a year, with data-centre projects responsible for a significant proportion of the increase.
This has become such an issue that Ofgem is proposing new measures designed to prevent speculative data-centre developments from taking up valuable capacity in Britain's grid connection queue.
What does this mean for electricians?
Although conversations around AI often focus on software and technology, constructing and operating data centres requires extensive electrical infrastructure.
Projects can involve everything from high-voltage power distribution and switchgear to containment, cabling, lighting, emergency systems, backup power, UPS systems, generators, monitoring and increasingly sophisticated cooling infrastructure.
And that means electricians and electrical contractors will be essential to delivering them.
Recent industry analysis has already highlighted a potential shortage of skilled electrical workers as the number of proposed UK data-centre developments increases.
For contractors with experience in large commercial and industrial installations, data centres could therefore become an increasingly important sector.
AI is changing the specification too
It isn't simply a case of building more conventional data centres.
AI computing requires extremely high levels of processing power, creating significantly greater power densities within facilities.
New developments are consequently being designed around much larger electrical loads, while technologies such as liquid cooling are becoming increasingly important.
Data centres must also operate continuously, making reliability, resilience and backup power critical parts of their electrical design.
Could data centres become a bigger opportunity in the North?
Historically, much of Britain's data-centre capacity has been concentrated around London.
However, new developments are increasingly being considered elsewhere in the UK as developers look for locations with available land and, crucially, access to sufficient electrical power.
The Government is also supporting AI Growth Zones around the country, designed to encourage the development of major AI and data-centre infrastructure.
This could help create opportunities beyond the traditional London data-centre market and across the wider electrical supply chain.
Another growth area for the electrical industry
EV charging, solar PV, battery storage and heat pumps have already changed the electrical landscape significantly over recent years.
AI and data centres could represent another major area of growth.
While most electrical contractors won't suddenly find themselves wiring hyperscale data centres, the wider investment required to strengthen the UK's electricity infrastructure could create opportunities throughout the sector.
From new substations and distribution equipment to cabling, containment, lighting, controls and energy management, increased electricity demand ultimately means increased investment in electrical infrastructure.
For electrical contractors, wholesalers and manufacturers, AI may therefore prove to be as much an electrical story as it is a technology story.
Supporting Electrical Contractors Across the North West
At Lancashire Electrical Distributors (LED), we continue to follow the technologies and developments shaping the future of our industry.
From everyday electrical installations to commercial, industrial, EV, lighting and low-carbon projects, our Stockport and Oldham teams can help contractors source the products they need.
With knowledgeable staff, an extensive product range and same-day delivery available on stock items, we're here to help keep projects moving.
Contact LED Stockport or LED Oldham for your next electrical enquiry.