New REA report: Flexible data centres are the grid’s new best friend

Industry calls for policy reforms to unlock AI growth while strengthening Britain’s electricity system, drawing on evidence from the International Energy Agency, NESO, National Grid Partners, NVIDIA and the Alan Turing Institute to show that intelligent, flexible computing infrastructure supports economic growth and the energy transition. Find the full report here: REA Data Centre – Flex 101

London, 1 July 2026:  The Renewable Energy Association (REA) today launches a new report, Data Centre FLEX 101: The Grid’s New Best Friend, setting out how the latest generation of AI-enabled data centres can intelligently adjust their electricity demand in response to grid conditions, absorbing surplus renewable power when it is abundant and reducing consumption during periods of peak demand.

Matt Parry, Head of Power, Flex & Energy Demand at the REA, said:

“Britain doesn’t have to choose between leading the AI revolution and building a clean energy system. Flexible data centres can help deliver both. The technology already exists – the missing piece is a policy framework that rewards flexibility, speeds up connections and recognises data centres as critical energy infrastructure, not just electricity consumers.”

Key takeaways:

• Modern data centres equipped with on-site battery storage and smart controls can quickly adjust their electricity use, helping to keep the grid stable and reducing the need for expensive network upgrades.
• Many AI tasks, such as model training and large-scale data processing, can be scheduled to run when renewable electricity is most abundant, making better use of clean energy without affecting users.
• Flexible UK data centres deliver wider economic and environmental benefits by strengthening UK’s digital infrastructure & powering AI applications that cut emissions across sectors including energy, transport, and manufacturing.

To unlock these benefits, the REA is calling on government, Ofgem and the National Energy System Operator (NESO) to prioritise three reforms:

• Introduce flexibility-first planning requirements for new data centre developments.
• Create faster, more cost-effective grid connection pathways for facilities that commit to providing demand-side flexibility.
• Reform balancing and ancillary service markets to allow data centres to participate fully in flexibility services.

About the report: Data Centre FLEX 101: The Grid’s New Best Friend explores how modern data centres can provide demand-side flexibility to support a renewable electricity system while enabling continued growth in AI and digital services.

About the Data Centre Coalition: The REA’s new Data Centre Coalition will give industry a unified voice and drive action. It will develop investable clean-power models, design an integrated national framework for planning, create policy certainty, and provide evidence-based input to government and regulators to enable clean, competitive growth in the UK’s digital infrastructure sector.

For further information or to join the REA Data Centre Coalition:

Matt Parry, Head of Power, Flex & Energy Demand, REA: [email protected]

For Media enquiries:

Aisha Afeef, Communications Executive, REA: [email protected]

Lindsay Barnett, Director of Marketing, Communications & Events, REA: [email protected]