Energy and tech giants to meet Government over plans to power UK AI

8 April 2025, 07:04

A server room in a data centre
Modern server room data center blue tone 3d background. Picture: PA

The first meeting of the Government’s new AI Energy Council will take place on Tuesday.

Energy firms and tech giants will meet Government ministers on Tuesday for the first round of talks on how to power the UK’s plans to expand its AI infrastructure.

In January, the Prime Minister laid out plans to make the UK a “global superpower” in AI by expanding on the data centres and compute needed to power the technology, as part of the Government’s AI Opportunities Action Plan.

The plan included the creation of an AI Energy Council, which will meet for the first time on Tuesday and, chaired by the technology and energy secretaries, will also discuss plans to boost the UK’s clean energy production.

The work of the AI Energy Council will ensure we aren’t just powering our AI needs to deliver new waves of opportunity in all parts of the country, but can do so in a way which is responsible and sustainable

Technology Secretary Peter Kyle

The Whitehall gathering will have representatives from the energy sector, including EDF, Scottish Power, Ofgem and the National Grid.

They will be joined by tech giants such as Microsoft, Amazon Web Services (AWS), Google and British semiconductor firm Arm.

The first meeting is said to be about members agreeing on the council’s objectives, specifically around improving clean power generation and improving AI and compute infrastructure.

AI is seen as one of the key innovations of the coming years, but development of new technologies in the sector are notoriously power-hungry, as AI models require large amounts of energy to process data and help complete tasks they are set.

The Government has set out plans to place the UK as a world leader in the sector to help boost the economy.

Technology Secretary Peter Kyle said: “The work of the AI Energy Council will ensure we aren’t just powering our AI needs to deliver new waves of opportunity in all parts of the country, but can do so in a way which is responsible and sustainable.

“This requires a broad range of expertise from industry and regulators as we fire up the UK’s economic engine to make it fit for the age of AI, meaning we can deliver the growth which is the beating heart of our Plan for Change.”

Energy Secretary Ed Miliband said: “We are making the UK a clean energy superpower, building the homegrown energy this country needs to protect consumers and businesses, and drive economic growth, as part of our Plan for Change.

“AI can play an important role in building a new era of clean electricity for our country and as we unlock AI’s potential, this council will help secure a sustainable scale-up to benefit businesses and communities across the UK.”

Andrew Bowie, the acting shadow energy secretary, said: “Labour may claim they are supporting UK AI, creating another quango will not disguise the fact that their net zero zealotry and punishing tax hikes are slamming the brakes on growth and investment.

“The UK has the highest electricity prices in the world, and the government’s plans are going to send bills soaring even higher.

“Businesses and families across the country are paying the price of Labour’s ideology first, national interest second approach with firms like Microsoft warning they might have to pull investments due to their inability to secure grid connections.

“Kemi Badenoch and the Conservatives are telling the truth about net zero by 2050 and what it will cost the country. Labour need to come clean.”

By Press Association

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