Getting power to site is now the biggest barrier to building data centres in Britain. On 28th October, the government set out what it will ask in return for faster access.
The Data Centre Covenant, published by HM Treasury alongside the Autumn Budget, offers operators faster power in exchange for meeting a set of clear conditions. A new Ministerial Control Centre, chaired by the Minister for AI, will use state powers to speed up grid connections and planning for strategic data centres. To qualify, those sites must pass five tests on energy, communities, the environment, jobs and security.
For operators, this means access to power is becoming conditional. There is a faster route to the grid, but getting onto it means committing to clear energy obligations. Below we look at what's on offer, what it could cost you and five questions worth answering before the rules are finalised.
The government estimates the UK needs 6 GW of AI data centre capacity by 2030. To get there, it's opening four routes to faster power for strategic sites, using new powers in the Planning and Infrastructure Act:
There are also wider reforms that will affect every operator. These include post-2030 connections aligned to regional plans, more freedom to self-build connection infrastructure, flexible connections with backstop operational controls, support for Ofgem's data centre commitment fee, a draft National Policy Statement out for consultation and continued delivery of the five AI Growth Zones.
One important detail is still missing. The government hasn't yet said what counts as a strategic data centre.
All data centres are encouraged to meet five tests. Strategic sites must meet them to qualify:
The energy test will have the biggest impact on your commercial model. Operators must make credible commitments for the capacity they request, support security of supply and clean power and help run an efficient, flexible system. Strategic sites must report every year on energy and water use, efficiency, emissions, heat reuse and flexibility participation.
Each of these comes with a cost, a contract or a data requirement, so it's worth budgeting for them now.
The criteria will decide who gets the faster route. They're still to come, but operators shouldn't wait for them. Those who can already show credible demand, flexible operation and real local value will be first in line when the definition is published.
The Covenant supports Ofgem's proposed data centre commitment fee. Under the proposal, operators would pay a refundable deposit of £237,500 to £712,500 for every MW of capacity they're offered. The deposit would be held from the day you accept your connection offer until your site is connected, then returned. On a 100 MW project, that's roughly £24m to £71m of capital tied up before you draw any power. Once you add network charges, your Local Benefit Plan and the efficiency and reporting spend, the connection becomes a much bigger part of what power really costs you.
Reserving, reallocating and transferring capacity will benefit some projects at the expense of others. Strategic projects stand to gain. If you hold a pre-2030 connection contract for a project that may not qualify, you'll need to understand how transfers will work. That mechanism hasn't been set out yet. And if limited capacity is set aside for strategic demand, other projects could face longer waits.
Government wants more data centres on flexible connections, with backstop controls to keep the system secure. In practice, you could get more capacity, but on terms that allow the system to reduce your demand when it needs to. As we covered in our blog on AI load and new grid rules, you're accountable for load your tenants control. Your leases will need to set out who reduces load, when and who covers the cost.
Temporary on-site generation is a welcome option, but it's reserved for exceptional projects, depends on energy security and still needs permits. Generators running for months lose the lighter regulatory treatment that backup plant usually gets, so expect emission limits and monitoring to match. We'd plan it as a contingency with a clear route to the grid.
The Covenant is part of a wider European trend. Governments and regulators across Europe are attaching obligations to access to power. Each market is setting its own terms:
Wherever you're building, getting connected now involves agreeing terms. If you operate across several markets, you'll be working with different rules in each. Understanding the detail in every market is becoming more valuable each year.
In our white paper, Powering the Next Generation of Data Centres, we argued that energy strategy is becoming infrastructure strategy. The Covenant turns that into government policy. Operators now have to qualify for power, commit to how they'll use it and report on it every year.
It's a significant change, but it also gives the projects that matter most a clear route to faster power for the first time. Operators who get their evidence, costings and contracts in place early will be best placed to use it.
At True Group, we help data centre operators across Europe secure and manage power, from grid connection strategy, procurement and risk to battery business cases and the regulatory detail in every market they build in. When energy crosses borders, so do we.
If you're working out what the Covenant means for your portfolio, we'd be glad to compare notes.
A UK government policy paper published by HM Treasury on 28th October 2026, alongside the Autumn Budget. It sets five tests for data centres covering energy, communities, the environment, jobs and security. Strategic data centres that meet them get faster grid connections and planning support through a new Ministerial Control Centre.
The government hasn't published the definition yet. It has said the definition and any extra qualifying criteria will follow. Until then, it's worth preparing the evidence the five tests ask for, especially on grid capacity, flexibility and local benefit.
All data centres are encouraged to meet the tests, but only strategic sites must meet them to qualify for extra support. Government will also strongly encourage existing operators to publish annual energy and water data. Wider reforms such as Ofgem's commitment fee and flexible connections will affect projects across the queue too.