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Market Chatter: UK Targets Speculative Data Center Projects With New Grid Rules

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The UK plans to require financial commitments from data center developers seeking electricity grid connections to discourage speculative projects and ease congestion, Bloomberg reported Tuesday, citing an emailed statement from Ofgem.

The report said Ofgem will outline proposals on Wednesday requiring developers to provide upfront financial guarantees while setting stricter milestones that could cost projects both their deposits and places in the grid connection queue.

Data center projects have requested about 73 gigawatts of grid capacity, with 40 developments each seeking more than 500 MW, adding pressure to Britain's electricity network, the report added.

Ofgem did not immediately reply to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumors and speculation. Accuracy is not guaranteed.)

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