Everyone is talking about AI. From governments to investors to global businesses, many are pouring billions into it and racing to adopt it. However, there is one critical issue sitting beneath the AI revolution that rarely makes the headlines: power.
Grid connectivity could become the UK’s biggest growth constraint.
As AI data centres, EV charging networks, housing developments, renewable energy projects, and industrial electrification all accelerate simultaneously, the UK’s electricity network is being asked to do something it was never originally designed for.
In a recent episode of the Infra Insider Podcast, Infra-Be’s Daniel Scorah sat down with Simon Reilly, our CEO, to discuss what is really happening behind the scenes of Britain’s growing grid capacity challenge.
The conversation revealed a fascinating reality: while energy generation often dominates discussions around net zero, the real bottleneck may actually be getting power to where it’s needed.
A grid built for a different era
According to Simon, many of today’s constraints stem from a simple fact: “The grid was built and designed for something very different to what is required now.”
Historically, the UK’s electricity network was designed around large-scale power generation from coal and gas-fired power stations. Energy flowed in one direction, from major generation sites to homes and businesses.
Simon compares the network to a motorway system.
The transmission network acts like the motorway, moving large volumes of power over long distances, while the distribution network functions more like A-roads, delivering electricity to end users.
The problem? Today’s energy system looks completely different.
Renewable generation is more distributed. Battery storage is becoming increasingly important. EV charging demand is growing rapidly. Perhaps most significantly, AI-driven data centres are creating entirely new levels of electricity demand.
As Simon explained: “My investment thesis for creating Aurora was around the electrification of heat, transport, industrial, commercial; the decarbonisation of industry effectively.
“What’s come into the mix since that has been AI and the need for data centres. That was part of the thesis, but not the main part at that time. Now it’s front and centre.”
The new competition for power
One of the most interesting moments in the discussion centred on a question many people outside the sector rarely consider: are all industries now competing for the same grid capacity?
The answer, according to Simon, is yes.
Whether it’s a housing development, an EV charging hub, a factory expansion, a battery storage project, or a new data centre, each is often drawing from the same available capacity within a local network area.
And that’s where problems begin. In some cases, organisations are being told that the power they require may not be available for many years.
Simon explained that developers often approach traditional network operators (otherwise known as Distribution Network Operators or DNOs for short) with a single figure in mind, they may say: “I need 10 megawatts.”
And the response might be: “You can have that in 2037.”
Yet the reality of their requirements is often more nuanced.
Many projects don’t require their full power allocation immediately. Demand grows over time, meaning there may be opportunities to secure an earlier connection through staged or “ramp-up” agreements.
It’s this type of practical problem-solving that Aurora as an Independent Distribution Network Operator (IDNO) can unlock, says Simon.
What exactly is an IDNO?
For many listeners, the episode also offered an introduction to a part of the UK energy sector that often operates quietly in the background: the IDNO market.
Aurora Utilities is one of more than 20 licensed IDNOs operating across Great Britain today. IDNOs emerged following the Utilities Act 2000, which opened electricity distribution to competition and paved the way for independent network operators.
An IDNO, just like a DNO, is regulated by Ofgem and held to the same standards. It plays a key role in connecting new developments to the electricity network. In simple terms, we own and operate the new electricity infrastructure that connects developments to the wider grid.
In the podcast conversation, Simon highlighted that in 2024, as much as 80% of new electricity connections in the UK were adopted by IDNOs. That’s a remarkable shift for a sector that many outside infrastructure have never heard of.
Why Aurora built a different model
When Aurora Utilities launched in 2024, the team weren’t looking to replicate what already existed, said Simon.
Instead, Aurora’s founders focused on the areas they believed were causing delays for customers.
- Land rights were taking too long.
- Design approvals were slowing projects down.
- Delivery ownership was fragmented.
The Aurora solution was straightforward: bring those capabilities in-house.
So over the last two years, Aurora’s management has built dedicated teams covering legal services, land rights, design, and project delivery, allowing clients to access expertise much earlier in the development process.
As Simon puts it: “We talk about being an extension of the client’s project team.”
Rather than simply providing a network adoption service, Aurora takes a consultative approach, helping developers understand what is achievable and identifying ways to accelerate progress.
The objective isn’t just to connect projects either, it’s to make complex infrastructure challenges easier to navigate.
Is power now the UK’s growth constraint?
Perhaps the biggest takeaway from the conversation was Simon’s view on the broader economic picture.
When asked whether electricity could become the limiting factor for growth, his answer was direct: “I think we’re at that point.”
From data centres to ports, manufacturing facilities to housing developments, demand for power is increasingly shaping investment decisions.
Yet, Simon is optimistic.
He believes regulators, policymakers, and industry participants are beginning to recognise the scale of the challenge.
He also argues that competition has an important role to play.
The creation of the IDNO sector introduced greater flexibility and innovation into electricity connections. Simon believes similar thinking could help unlock progress elsewhere in the energy system too.
The UK’s energy transition is often framed around generation, renewables, and carbon reduction targets. But, as Simon explains in this podcast, the real challenge may be something far less visible: accelerating grid connections to power economic growth.
From AI and data centres to EV charging and housing delivery, the infrastructure decisions being made today will shape Britain’s competitiveness for decades to come.
To hear Simon’s full insights on grid connectivity, energy infrastructure, investment, and the future of the UK’s electricity network, watch the complete episode of Infra Insider on the Infra-Be YouTube channel: 🎥https://youtu.be/Kjr9InWWJhU
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