Data centres delay new London homes

A London Assembly report warns that the rapid growth of energy-intensive data centres is delaying new housing in the capital, exacerbating the city's housing crisis. Some developments in west London were temporarily stalled after the electricity grid reached full capacity, highlighting energy supply as a constraint on housing and economic growth. While data centres currently account for under 10% of the UK’s electricity demand, usage is expected to rise sharply by 2050, with over half of new centres planned in and around London. The committee recommended creating a separate planning category for data centres and called on long-term investment in the grid to support both housing and digital infrastructure. The government is exploring tailored solutions, including input from the AI Energy Council, while the Mayor is urged to adopt a dedicated data centre policy in the next London Plan.

BBC News (04/12/2025)