Tech Pledges From Trump’s UK Visit Will Test Strained Power Grid
Microsoft Corp. And Openai is one of the US companies that have promised to invest £ 31 billion in the UK artificial intelligence projects in the UK, but industry experts say that commitment can be weakened by some of the world’s aging power network and some world’s highest electric prices.
Prime Minister Keir Starmer promised quickly planning approval for data centers and facilitating access to the power network. However, if artificial intelligence is largely energy hungry and cannot fulfill its government commitments, companies can look elsewhere.
Joshua Leahy, Chief Technology Officer XTX Markets, said, “Britain, some of the world’s highest electric prices are not suitable for data center development with a poorly suitable planning system and systemic failure of governance.”
Earlier this year, the XTX Markets, a quantity supported by billionaire Alex Gerko, announced that it will build five data centers in Finland to support the increasing use of machine learning.
The US-UK initiative is a return from President Donald Trump to England this week.
It will be difficult to get these plans from the page and to the ground. In the UK, the new infrastructure, aging, tense grill is caused by a nervous grill. According to Savills PLC, a real estate company that works with developers to determine which sites are suitable for data centers, it may take at least five years to obtain a new connection.
The US explosion in the US has been promoting the biggest increase in power demand for decades, leading to rising benefit invoices. From Virginia to Illinois and hosting the world’s largest AI data centers, the largest grille uses mostly natural gas, nuclear reactors and coal instead of clean energy.
The same mix of power in the UK will not work. The central energy policy of the government envisages a clean grill until 2030, while the energy policy reduces invoices. Furthermore, if the planned “AI growth zones olan fruit, they would have made a major increase in electricity demand.
Looking at the US experience, it is increasingly difficult to see how England can achieve all this.
According to government data, the UK is progressing towards its 2030 target and receives 50% of the electric supply from renewable sources last year. According to the ICIS, the analysis company, even if the renewable power is added at a record speed, the demand from the data centers may grow by 40% by 2030, which will quickly wet the extra materials.
The UK has high electricity costs due to the role of gas fuel power plants in determining prices. The most expensive megawatt to meet the demand determines the price of everyone on the market. This means that even if the wind blows and the sun shines, a small amount of expensive gas on the grill can increase the cost. In other parts of Europe, cheaper resources such as France and nuclear energy keep prices low.
To be sure, the technology industry is often willing to pay for power. People in the energy sector talk about AI premium – they refer to the high cost that the industry wants to suck to obtain the supply they need. Last year, Microsoft agreed to keep prices upright to restart the Three Mile Island nuclear power plant in New York.
However, extra demand can increase prices for anyone who is politically likely in a country where public bills are in mind for inflation voters.
According to Aurora Energy Research Ltd. Without investing in parallel with renewable energies, higher demand is increased by 9% until 2040.
“Our invalid priority is the place where our customers are the most powerful connection and the lowest delay, Seam said Seamus Dunne, General Manager of England and Ireland in Digital Realty. The company runs one of the largest fleets in London with 13 data centers. “Therefore, even if the power prices are high, we continue to invest in London and other large metro areas.”
According to ICIS, countries like France, where energy prices are cheaper, are more attractive than the UK and will begin to enter into force by 2030.
ICIS analyst Luca Urbanucci said, the main distinction between the French and the UK markets in terms of data center attractiveness, ”he said. “As data center developers go to regions with lower power prices and abundant renewable resources, high UK electricity costs are likely to remain as a structural drag.”
This article was created from an automatic news agency feeding without changing the text.
