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4 July 2025

Upgrading National Grid to Power AI Future Tackled at AI Energy Council


The energy demands to drive the processing power needed for new waves of AI breakthroughs and the future energy needs of the wider AI sector were on the agenda as the AI Energy Council gathered for its second meeting.

With energy providers, tech companies, energy regulator Ofgem and the National Energy System Operator (NESO) in attendance, the meeting discussed how to work together to forecast how much energy will be needed to deliver a twenty-fold increase in compute capacity over the next five years.

Compute represents the key building block of AI development. It captures the vital resources which make AI models work, such as the processing power which allows them to be trained on data and process information. By increasing the UK’s capacity, it will give scientists and AI companies from across the UK access to the systems they need for their cutting-edge research – making the next big breakthrough from personalised medical treatments, more sustainable air travel, or developing new tools in the fight against climate change.

The meeting also covered which sectors are likely to quickly adopt AI and how this could drive significant shifts in energy demand. Discussions will focus on what assumptions need to be made to accurately forecast that demand, ensuring the energy system is prepared for AI.

The meeting was chaired by the Technology and Energy Secretaries, and followed the UK Government announcing £2 billion to deliver the AI Opportunities Action Plan.

Secretary of State for Science, Innovation, and Technology, Peter Kyle said:

“Giving our researchers and innovators access to the processing power they need will not only maintain our standing as the world’s third-biggest AI power, but put British expertise at the heart of the AI breakthroughs which will improve our lives, modernise our public services, and spark the economic growth which is the cornerstone of our Plan for Change.

 

“We are clear-eyed though on the need to make sure we can power this golden era for British AI through responsible, sustainable energy sources. Today’s talks will help us drive forward that mission, delivering AI infrastructure which will benefit communities up and down the country for generations to come without ever compromising on our clean energy superpower ambitions.”

Secretary of State for Energy Security and Net Zero, Ed Miliband, said:

“We are making the UK a clean energy superpower, building the homegrown energy this country needs to get bills down for good and create new jobs as part of our Plan for Change.

 

“Bringing together the biggest players in AI and energy will help us discuss the role AI can play an important role in building a new era of clean electricity for our country, and meeting the power demands of new technology as we build a clean power system for families and businesses.”

The meeting considered the future energy needs of the AI sector more widely, as the UK Government also continues to move forward with its plans to roll out AI Growth Zones across the country.



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