A project has already been announced in Northumberland, but a decision regarding another in Teesside, northeast England, has been delayed until the end of this year by Miliband. His department is considering whether to approve plans for a hydrogen plant on the same site, potentially hindering data center constructions.
“There is a large fight within the government where Ed Miliband seems opposed not just to the prime minister, but also to several secretaries of state,” Houchen stated during the Conservative Party Conference in October.
The government is planning for a cleaner yet costlier energy source—nuclear, particularly small modular reactors. Michael Jenner, CEO of the nuclear firm Last Energy UK, shared they’ve received numerous inquiries from data center builders and emphasized nuclear’s green credentials could be a decisive factor against gas company bids.
“If you’re considering building data centers in South Wales, many are facing opposition from authorities against new gas,” he mentioned.
In September, EDF Energy revealed plans to partner with U.S. company Holtec International in erecting data centers next to small modular nuclear reactors at a retired coal plant in Nottinghamshire.
The Tony Blair Institute, influencing government officials, has asserted nuclear has a “unique” advantage for data centers. It suggests scaling back on net zero goals to lower energy costs, thus attracting data center investments.
“Cheap, firm power is … not a ‘nice to have’ but a prerequisite for attracting AI-driven growth,” it argued in a report last month. The report also recommended gas remain a part of the energy mix. In July, the AI Energy Council urged ministers to approve increased use of gas turbines temporarily.
Time is vital. Whether opting for gas, nuclear, renewables, or even wooden pellets, ministers driving the AI revolution must make swift decisions.
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