UK Launches AI Energy Council to tackle power demands of tech growth

The government’s new AI Energy Council will meet for the first time today [8th April], bringing together energy and tech leaders to ensure the UK’s power grid can meet the growing demand of AI.

Co-chaired by Technology Secretary Peter Kyle and Energy Secretary Ed Miliband, the Council aims to align clean energy goals with AI infrastructure needs as part of the government’s 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,” Milliband said.

Industry heavyweights, including Microsoft, Google, Amazon Web Services, ARM, EDF, Ofgem, and National Grid, are expected to be present. Discussions will focus on energy efficiency, grid capacity, and how to ensure data centres are powered sustainably.

Peter Kyle says the Council will help “fire up the UK’s economic engine to make it fit for the age of AI.”  

Announced in January as part of the government’s response to the AI Opportunities Action Plan, the Council is intended to bring together expert input on the energy requirements of AI, as the UK government explores the economic impact of technology in its Plan For Change.

Countries worldwide are grappling with the energy demands of AI data centres. In the UK, new AI Growth Zones are to be located in areas with access to at least 500MW of power, equivalent to enough to supply around two million homes, intending to attract private investment and create high-skilled jobs in the emerging tech sector.

Ofgem CEO Jonathan Brearley says that AI can help make the energy system more efficient, but it must be implemented properly. 

“AI will play an increasingly important role in transforming our energy system to be cleaner, more efficient, and more cost-effective for consumers, but only if used in a fair, secure, sustainable and safe way,” he said.

However, the Conservatives criticise the move, accusing Labour of masking the economic impact of its net-zero policies.

“Labour may claim they are supporting UK AI, creating another quango won’t disguise the fact that their net-zero zeolatry and punishing tax hikes are slamming the brakes on growth and investment,” said Acting Shadow Energy Secretary Andrew Bowie MP.

He warns that the plans could push the UK’s already high electricity prices even higher and harm investment confidence.

“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.” 

The AI Energy Council is expected to meet quarterly, with the next session planned for the summer.

Tim Flagg, CEO of UKAI, said: “The UK should aspire to global leadership in AI energy innovation, developing and implementing solutions that maximise efficiency from our existing infrastructure. With UK energy prices triple those in the US, our AI sector faces significant competitive disadvantages that hamper investment attraction.

“British companies are already pioneering solutions, from efficiency enhancements and heat recovery to distributed computing models. AI isn’t merely presenting challenges; its technologies offer solutions. UKAI welcomes the announcement of the AI Energy Council and looks forward to collaborating on responsible, innovative approaches that support the AI sector’s growth and address its energy requirements across the UK for years to come.”