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UK budget proposes grid incentives for data center operators

The planned British Data Centre Covenant would tie electricity connection priority to commitments on local investment, employment and water supplies.

Data center server racks and electricity infrastructure
Photo: CNA

Britain would offer data center operators preferential access to grid connections under a budget proposal announced by finance minister John Healey on October 28. Operators would have to make commitments covering local investment, jobs and water supplies.

Healey said the planned British Data Centre Covenant would also allow operators to build their own on-site electricity generation facilities when necessary. The incentives are intended to support data center development in Britain.

Speaking in parliament, Healey connected the proposal with government goals for artificial intelligence and national security. He said Britain wanted sensitive information used by its military and public services to remain in the country as AI use increases.

Other budget measures included an AI Challenge Prize aimed at promoting adoption of the technology across public services. Healey also announced funding to help workers adapt to technological changes.

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Hao Chen

Technology Editor

Edits and reviews technology business stories: artificial intelligence, chips, big tech, software, cybersecurity incidents, start-ups and platform regulation.