Ofgem has proposed rules requiring data center projects to post substantial
upfront fees or financial guarantees — for example letters of credit,
performance bonds or cash deposits — and to meet tighter project milestones to
prevent speculative projects from long-term occupation of grid connection
queues. The regulator will publish a consultation on Wednesday setting out fee
calculation, how the National Grid ESO would hold and manage the funds, and the
circumstances in which projects could lose queue priority and forfeit paid fees
or guarantees.
