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Ofgem Proposes Deposit Rules to Block Phantom Data Centers

8/27/2026

50 7 Full Breakdown

Summary

Story summary

Ofgem proposed rules to eliminate phantom data centers from the power-grid queue.
The July plan requires a non-refundable deposit that could total hundreds of millions of dollars.
Developers must secure early customers and demonstrate funding to complete builds.
Ofgem will accept industry feedback until September before finalising the rules.
Knight Frank’s Alex Burgoyne warned the measures could make the UK a costly data-center location.

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Story summary

Ofgem proposed rules to eliminate phantom data centers from the power-grid queue.
The July plan requires a non-refundable deposit that could total hundreds of millions of dollars.
Developers must secure early customers and demonstrate funding to complete builds.
Ofgem will accept industry feedback until September before finalising the rules.
Knight Frank’s Alex Burgoyne warned the measures could make the UK a costly data-center location.