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UK’s Healey offers grid access incentives for critical data centres

By Thomson Reuters Oct 28, 2026 | 8:27 AM

LONDON, Oct 28 (Reuters) – Finance minister John Healey on Wednesday unveiled plans in his budget ​to support the development ‌of data centres in Britain, linking the measure to the government’s artificial intelligence and national security objectives.

Healey said ‌the ​government would launch ⁠a new British ⁠Data Centre Covenant requiring operators to invest in local communities, create jobs and protect water supplies, ​in return for priority grid connections and, where necessary, ⁠permission to build ⁠on-site power generation.

“Built on ​sovereignty and security, I want to ​ensure that the British people can ‌benefit from the huge potential upsides of AI,” Healey told parliament.

He said the aim was ⁠to keep sensitive data used by public services and the armed forces in ⁠Britain ‌as the use of ⁠artificial intelligence expands.

Healey also ​announced ‌an AI Challenge Prize ​to encourage ⁠the use of AI in public services and funding to support workers adapting to technological change.

(Reporting by Sam Tabahriti; Editing by ​Kate Holton)