Trump’s UK Tech Pledges Face Power Grid Challenges

President Donald Trump’s recent visit to the UK brought a wave of investment commitments from U.S. tech giants, with Microsoft, OpenAI and others pledging around £31 billion (US$41.8 billion) to accelerate artificial intelligence development. While the move signals confidence in the UK’s tech ambitions, industry experts warn the country’s strained electricity infrastructure could undermine these plans.

The UK’s ageing power grid, among the most expensive in the world, is already struggling to keep up with rising demand. Prime Minister Keir Starmer has promised to streamline planning approvals for data centres and speed up grid connections. However, companies highlight deep-rooted challenges, including high tariffs and lengthy approval processes that can delay projects for up to five years.

Joshua Leahy, chief technology officer at trading firm XTX Markets, described the UK’s planning system as “ill-suited” for data centre growth. XTX itself recently shifted investment to Finland, where cheaper energy makes large-scale machine learning projects more viable. Analysts caution that without structural reforms, similar investments could bypass Britain despite political promises.

Government officials are pushing for “AI growth zones” to support expansion, but this would sharply increase electricity demand. Forecasts from ICIS suggest data centre consumption could rise 40% by 2030, potentially absorbing much of the new renewable capacity the government hopes to bring online. Although the UK aims to achieve a fully clean grid by 2030 and reduce household bills by about £300 annually, experts warn that renewable growth may not keep pace with surging demand from tech infrastructure.

High power costs remain another deterrent. Even with strong renewable output, gas-fired plants often set marginal prices, keeping electricity expensive compared to markets like France, where nuclear energy provides a stable and lower-cost supply.

Despite these hurdles, companies such as Digital Realty continue to expand in London, citing connectivity and low-latency advantages. Yet without urgent upgrades to infrastructure, Britain risks losing parts of its AI investment boom to more energy-efficient rivals.