Energy Minister Michael Shanks has said artificial intelligence should help bring down electricity bills and improve the way Britain uses its energy system, as data centres place growing pressure on the grid.
Speaking to the UKAI trade association’s energy infrastructure working group in Westminster, Shanks said the UK must make the case that AI and data centres can support energy security, affordability and system efficiency.
The comments come as policymakers face rising questions about how to connect major new data-centre loads while maintaining progress on clean power, grid resilience and consumer affordability.
AI, data centres and electricity demand
Shanks, who serves as Minister of State for Energy, said the government needed to deliver energy security while reducing bills.
“We need to deliver energy security here at home, but we need to bring down bills. And affordability is the government’s number one mission,” Shanks said.
He also warned that the public narrative around AI infrastructure and data centres would need careful handling.
“There’s a bit of work we’ve got to do on the narrative around AI in data centres. I worry if we’re not careful, we could lose some of that argument with the public,” Shanks said.
He added that AI should be presented as an opportunity for Britain to lead in technology while also using the energy system more effectively.
Data centres are expected to become an increasingly important part of UK energy planning as demand for artificial intelligence, cloud computing and digital services grows. The challenge for government, grid operators and developers is to ensure that new demand is matched with faster grid connections, clean power, flexibility and local energy planning.
Local energy markets and renewables
Shanks also discussed the role of renewables, solar power, local energy markets and community energy in helping consumers manage energy costs.
Local flexibility and distributed energy resources are becoming more important as the UK tries to reduce pressure on the transmission system and make better use of power generated closer to demand.
The minister’s remarks reflect wider government interest in using AI to improve grid planning, forecasting and energy system optimisation. His GOV.UK ministerial brief includes responsibilities for Clean Power 2030, renewables, the grid and networks, energy market reform and Powering AI.
Justin Tilley, Retail Channel Lead at EcoFlow, said the discussion showed the importance of consumer-facing technologies such as solar and battery storage.
“As households continue to face high energy costs, exploring the role that solar and battery storage can play in the energy mix will be critical to helping consumers take greater control of their energy use, lower their bills, and strengthen the UK’s long-term energy resilience,” Tilley said.
Cyber risks to critical energy infrastructure
Shanks also warned that AI is changing the cyber threat landscape for energy infrastructure.
“The cost of resilience and the threats this country faces are growing day by day and the landscape is shifting to state actors and others who are employing AI in order to find vulnerabilities in our infrastructure,” he said.
He said the UK faces daily threats, increasingly from less sophisticated groups using AI to identify vulnerabilities that previously would have required far greater resources.
Graeme Stewart, Head of Public Sector at Check Point, said AI-enabled cyber attacks pose a severe threat to critical national infrastructure.
“A single attack could cause chaos for the government, impacting the daily lives of consumers and leaving them without core utilities and essential power supplies,” Stewart said.
He said the proposed Cyber Resilience Bill provides a framework, but that policymakers and business leaders must put security measures into practice.
Policy challenge for the next government phase
The remarks came days before Andy Burnham is expected to become Prime Minister on 20 July 2026, following Sir Keir Starmer’s resignation and Burnham’s selection as Labour leader.
The incoming government will inherit a complex energy agenda. Data-centre growth could increase pressure on grid connections and local electricity networks, but AI could also support system balancing, demand forecasting, asset optimisation and cyber defence.
The policy challenge is to ensure that digital infrastructure growth supports clean power and lower bills, rather than creating additional cost and resilience risks for households and businesses.
FAQs
What did Michael Shanks say about AI and electricity bills?
Michael Shanks said AI and data centres should be framed as an opportunity to use the energy system better and help bring down bills, while supporting energy security.
Why do data centres matter for the electricity grid?
Data centres use large amounts of electricity and can place pressure on grid connections, local networks and power supply planning, especially as AI demand grows.
How could AI help the energy system?
AI can support demand forecasting, grid optimisation, local energy balancing, asset management, cyber defence and better integration of renewables.
What cyber risks did the minister highlight?
Shanks warned that hostile actors and criminal groups are using AI to identify vulnerabilities in critical infrastructure, including energy systems.
When is Andy Burnham expected to become Prime Minister?
Current reporting indicates Andy Burnham is expected to become Prime Minister on 20 July 2026.
