UK businesses shifting AI operations overseas over power issues

UK businesses are increasingly moving AI operations overseas due to high domestic power prices and grid constraints, according to a new report.

Some 20% of firms surveyed said they have already relocated AI work and a further third said high energy costs are restricting their ability to expand infrastructure.

According to the International Energy Agency, data centres consumed approximately 415 TWh of electricity globally in 2024 — about 1.5% of total global consumption — a figure that will more than double to 945 TWh by 2030, slightly exceeding Japan’s current annual electricity consumption.

“AI infrastructure is no longer constrained only by algorithms or access to GPUs. It is being constrained by land, by the price and availability of power, and by the basic realities of the grid. Increasingly, electricity is what shapes the economics,” said the report.

The US is seen as the most attractive destination for new AI capacity followed by India and Eastern Europe.