Chief executive of one of Canada’s largest commercial property developers said that he would invest “hundreds and millions” more in new data centres, if only he could ensure the supply of electricity needed by these sites.
David Sleath is the chief executive officer of Segro. The FTSE 100 developer, landlord and property manager, said that in some cases his teams waited “a number years” to upgrade local substations, increasing grid capacity. Segro, the FTSE 100 developer and landlord, said that if this capacity was available today, it would be building more data centres.
Sleath said that the biggest obstacle is power access. It’s been an ongoing problem, and right now it’s a major issue because it is preventing investment in critical sectors the government recognizes as important to UK success.
The government has identified artificial intelligence (AI) technology as an area of critical focus. We alone would invest hundreds of millions of dollars and possibly more.
Most data centres are almost identical in appearance to the warehouses that line the motorways and towns’ edges. Data centres are required for almost every consumer activity. From streaming TV to shopping online and accessing our email, data centres are needed.
Equipment inside can get extremely hot, and it requires a lot of power. This connection is required to the grid.
David Sleath, Segro’s boss, says that upgrading the National Grid will be vital for future power requirements
Sleath stated that “getting a connection can be a painful process due to the archaic way in which the National Grid plans and meets the requirements.” You have to wait in line to receive an energy connection. Everyone is currently facing a bottleneck. It all depends on where you’re at in the queue.”
He said that while the upgrade of Britain’s grid is a priority for now, his concern extends to Britain’s energy security in the long-term.
Solar and wind power will make an important contribution. But we need to supplement it with other sources of energy or the battery technology needs to improve. “There’s likely to be a role for the nuclear power in this.”
Peter Kyle, technology secretary, reclassified data centres last month as critical national infrastructure. This was just before four American data center developers announced their plans to invest £6.3 billion in building new sites across Britain.
National Grid’s spokesman said that the company was “committed” to connecting as many viable projects as possible to the grid. To achieve this, we are working closely with developers and supporting the National Energy System Operator(Neso), Ofgem, and the Government to deliver reforms which will speed up the processes and ensure that the right projects connect to help us reach Britain’s Net-Zero targets and economic expansion.”
A spokeswoman for the government said: “We’re working with Ofgem, network companies and other stakeholders to reform outdated connection processes and accelerate delivery of new infrastructure including substations. This includes the removal of stalled projects and making it easier for data centers to secure a timely connection.
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