Britain’s future economic growth and leadership in industries like artificial intelligence depend critically on securing reliable, affordable energy infrastructure and making better use of existing assets, says Will Gardiner

Britain needs stronger growth, and the investment and jobs that come with it. The UK has the talent, technology and ambition to become a world leader in the industries of tomorrow, but realising that potential will depend on something more fundamental: whether we have the energy infrastructure to support growth.

Britain is competing internationally for businesses to invest and grow, and electricity that is both reliable and affordable is a core component. Since the end of 2019, the UK has grown by 6.2 per cent compared to 16.3 per cent in the US. CBI and Energy UK are calling for government to tackle the cost of energy for businesses to achieve greater growth. If we are to achieve these levels of growth, we need to be decisive and competitive in the upcoming budget. 

Energy is the often-overlooked foundation of economic growth. When the system works, we barely give it a second thought. But without reliable and affordable electricity, even the most advanced technologies cannot reach their full potential.

History shows us what is possible when infrastructure keeps pace with innovation. When London’s first electric underground railway opened in 1890, it demonstrated how new technology, supported by the right infrastructure, could transform a city. Today, we take the Tube for granted, rarely considering the energy system working behind the scenes.

Britain faces a similar challenge today. The technologies may be different, but the principle remains the same: ambition alone is not enough. We need the infrastructure to turn it into reality.

As electricity demand grows, that challenge is becoming increasingly urgent. Westminster projects that the UK’s electricity demand is likely to double by 2050. 

For too long, the debate about Britain’s energy future has focused on how much electricity we can generate. What matters just as much is whether we can deliver reliable, affordable electricity to businesses when and where they need it, regardless of the weather or season. Recent scrutiny of the National Energy System Operator (NESO) acts as a clear reminder that delivering energy security requires strong governance and operational resilience to keep our electricity system running. 

Not just renewables

A diverse and flexible energy system – one that combines growing renewable generation with energy storage and dispatchable power that can respond when demand rises or when the weather doesn’t cooperate – can deliver that. It also requires stronger grid infrastructure and smarter technologies to manage supply and demand.

Crucially, we need to make better use of the infrastructure Britain already has.

Across the country, existing power stations, grid connections and industrial sites represent valuable assets – these can and should be adapted to support emerging industries, alongside continued investment in new infrastructure.

Nowhere is the importance of getting this right clearer than in artificial intelligence.

AI has the potential to transform industries from healthcare and financial services to manufacturing and scientific research. But unlocking that potential will depend on Britain having the energy infrastructure to deliver reliable, affordable power at the scale required to support a significant expansion in data centre capacity. AI and data centres alone will account for up to 16 per cent of Britain’s electricity demand within a decade.

Building that capacity here is critical to strengthening the UK’s AI capabilities and ensuring Britain captures the investment, jobs and economic benefits of the technology that will define the next century.

Yet delivering the infrastructure is proving challenging. Grid connection delays risk holding back projects at precisely the moment international competition for AI investment is fierce.

This is where making better use of existing energy infrastructure, alongside developing new capacity, could help Britain unlock investment more quickly.

From the Ukraine War to tensions in the Middle East, the case for a diverse, flexible energy system has never been clearer as an energy security and economic priority.

Britain cannot control the next global crisis or the pace of international competition, but it can make decisions today that strengthen its resilience and competitiveness. The upcoming budget provides a chance for just that: investing in growth.

Will Gardiner CEO of Drax