Future Of British Business

UK’s Strained Power Grid Faces Test From US Tech Plans

Britain has some of some of the world’s highest electricity prices.Photographer: Chris Ratcliffe/Bloomberg

Microsoft Corp. and OpenAI are among the US firms that have in recent days pledged to invest £31 billion ($41.8 billion) into artificial intelligence projects in Britain, but industry experts say the commitment could be undermined by the UK’s aging power grid and some of the world’s highest electricity prices.

Prime Minister Keir Starmer has promised to fast-track planning approval for data centers and ease access to the power grid. But AI is notoriously energy-hungry and companies could look elsewhere if the government can’t meet its commitments.