Britain’s Data Centre Covenant, published on 28 October, offers qualifying strategic projects help with grid connections and planning. All operators are encouraged to meet its standards; strategic sites must do so to qualify for additional government action. The definition of strategic projects and further criteria are still to come.[1]
A ministerial control centre will consider support, including reserving future capacity and reallocating connections released by departing projects. The commitments cover local benefit plans, energy-system costs, efficient water and energy use, national resilience and UK jobs and supply chains.[1]
Evidence that changes as a project develops
Ofgem’s separate consultation, launched on 29 July, still awaited a decision on 29 October. It proposes financial security covering a fee from acceptance of a connection offer until the connection goes live. Failure to progress under the rules would make the fee payable.[2][3]
Proposed milestones cover customer demand, procurement of electrical equipment that takes a long time to supply, and financial and technical capability. For projects intended for lease or sale, customer evidence would strengthen from an early non-binding agreement to a binding commitment before final investment and construction.[3]
The sequence addresses a difficulty identified in the consultation: a customer agreement may itself depend on confidence about the electricity connection. Staged evidence would help test seriousness before major spending decisions.[3]
Taken together, the two documents ask different questions: can the project progress to connection, and does it justify special government help? The covenant establishes the second offer; its strategic eligibility criteria remain unfinished.[1][3]
Sources & further reading
- The Data Centre Covenant HM Treasury · 28 Oct 2026 · Accessed 29 Oct 2026
- Proposed data centre connection reforms Ofgem · 29 Jul 2026 · Accessed 29 Oct 2026
- Curate: Demand Connections Reform consultation Ofgem · 29 Jul 2026 · Accessed 29 Oct 2026