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Ofgem Weighs Power Curtailment for Data Centers

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Great Britain energy regulator Ofgem said on Tuesday that it is evaluating whether future data centers must mandatorily reduce power consumption during periods of extreme system stress.

The proposal serves as a regulatory backstop to maintain grid reliability, while grappling with a surge in electricity demand driven by artificial intelligence and cloud computing infrastructure, the regulator said.

Under these framework terms, data center operators could opt to adjust operations or curtail consumption during peak hours in exchange for preferential, expedited grid connection dates.

The pressure on the UK's power infrastructure is further highlighted by a massive pivot toward natural gas.

While Ofgem and the UK government acknowledge gas may act as a critical bridge to prevent near-term power shortages, regulators stressed the need to manage these demand-connection reforms carefully to avoid locking the digital sector into high-carbon dependency.

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