The SMF report pointed to research by the tech-focused energy supplier Octopus Energy that claimed zonal pricing would mean a datacentre in Aberdeen would have electricity costs 65% lower than one in Slough, and make Scotland’s electricity prices the lowest in Europe.
Supporters of the plan believe that different pricing zones could encourage high energy users such as datacentres and factories into areas of the country with low energy prices, creating new job opportunities beyond south-east England and making sure that windfarms in remote areas do not need to be turned off because of low demand to avoid overwhelming the local grid.
This market arrangement, known as zonal pricing, would make areas such as Scotland a hotspot for AI datacentres – which use vast amounts of electricity – because of an abundance of windfarms and low population density, according to the report by the Social Market Foundation (SMF) thinktank.
Tech firms call for zonal electricity pricing in UK to fuel AI datacentres Report urges ministers to overhaul market to increase rollout in areas that have ample power generation.
A report paid for by the tech companies Amazon and OpenAI has called on ministers to overhaul the UK’s electricity market by splitting it into different zones so that prices become more expensive in areas where power is in short supply, and cheaper in those where it is ample.
