Businesses waiting years for grid connections could increasingly generate their own electricity using solid oxide fuel cells, as soaring AI and industrial demand puts access to power at the centre of UK investment decisions.
A new report from Centrica and British clean technology company Ceres warns some high-voltage grid connections can take between five and 15 years, while solid oxide fuel cell systems could potentially be installed in less than 12 months.
The companies argue “time-to-power” is becoming a significant constraint on data centres, advanced manufacturing, hospitals and other energy-intensive developments.
Global data centre capacity is forecast to rise from around 76GW in 2026 to 182GW by 2030, while power demand from AI workloads alone could increase from around 14GW in 2025 to more than 120GW by the end of the decade.
So what exactly is a solid oxide fuel cell?
Unlike a conventional generator that burns fuel to create heat and mechanical power, an SOFC uses a high-temperature electrochemical reaction to convert fuel directly into electricity.
A solid ceramic electrolyte sits between electrodes, allowing the chemical reaction to generate direct-current electricity without conventional combustion.
The systems can run on natural gas, biomethane or hydrogen and typically achieve electrical efficiencies of around 60% to 65%, compared with roughly 35% to 40% for an open-cycle gas turbine. Recovering their waste heat can push total efficiency above 90%.
They also produce very low levels of NOx, SOx and particulates, require little cooling water and generate less noise than conventional combustion equipment.
But they are not zero-carbon when fuelled by natural gas.
The report puts direct emissions at around 300g of CO₂/kWh, compared with 350g to 500g for an open-cycle gas turbine and more than 600g for stationary diesel generation. It argues future systems could move onto hydrogen or biomethane or potentially be combined with carbon capture.
Ceres’ technology can also be reversed to operate as an electrolyser producing hydrogen, while fuel cells could eventually work alongside batteries, renewables and advanced nuclear systems.
Chris O’Shea, Chief Executive of Centrica, said: “The UK cannot afford for power connections to become the reason investment goes elsewhere. Fuel cells can help bridge that gap by providing dependable on-site power for data centres, hospitals, manufacturers and other critical users.”
Ceres and Centrica argue the technology could allow projects to proceed before full grid reinforcement arrives, with on-site generation later retained for resilience or operated alongside the network.
That could become increasingly important as connection delays collide with a huge new wave of electricity demand from AI, electrification and industrial expansion.
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