Tech firms push UK government for zonal electricity pricing to boost AI datacentres

Tech companies, including Amazon and OpenAI, are urging the UK government to implement zonal electricity pricing. This would create cheaper electricity in areas with abundant power, like Scotland, to support the growth of AI datacentres. A report from the Social Market Foundation suggests that zonal pricing could reduce electricity costs for datacentres significantly. For example, costs in Aberdeen could be 65% lower than in Slough, making Scotland a prime location for such facilities. The proposal comes amid a government consultation on the electricity market. While supporters believe it could attract high-energy users to low-cost areas, clean energy firms worry it may threaten the profitability of new renewable projects. A government decision is expected soon.