AI centers might stop new housing construction

The UK government plans to prioritize artificial intelligence data centers for connection to the electricity grid. However, builders are concerned that this decision could seriously hinder the construction of new homes. Reports bbc.com.
Currently, all new infrastructure, from hospitals to industrial facilities, must join a virtual queue to connect to electricity. In the first half of 2025, this queue grew by 460 percent. This is mainly due to highly energy-intensive data centers. As a result, some projects have to wait years to launch.
Under new proposals, projects promising economic growth and job creation could bypass the queue. The government wants to grant this opportunity to critical projects like AI infrastructure and electric vehicle charging stations. AI Minister Kanishka Narayan emphasized his belief that these reforms will make the country wealthier and fairer.
But the Home Builders Federation is unhappy that new homes are not included in the priority infrastructure list. Federation representative Steve Turner stated that prioritizing energy-intensive data centers over energy-efficient family homes during an ongoing housing crisis is unfair. If home building is neglected, the construction of new homes in areas with limited electricity capacity could come to a complete halt.
There are currently around 500 data centers across the country, consuming 2 percent of total electricity. With the development of AI, this figure is expected to increase sixfold by 2050. In some areas of London, new home construction has already been temporarily halted because the electricity grid has reached its maximum capacity.
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