A: Not as much as you think if your new connections aren’t in place..

Seismic changes are underway in the UK’s real estate market. As the country accelerates its transition to a low-carbon economy, availability and capacity of electricity infrastructure have emerged as critical factors in property development and investment decisions. Grid capacity is the new currency and connectivity to the grid (or lack of it) can make or break a deal.

In the past, developers have focused on planning permissions, transport links, and demographic trends in bringing their sites forward. Today, power availability is an increasingly important factor in the viability of development sites. With the rise of electric vehicles, heat pumps, and energy-intensive digital infrastructure, demand for electricity has never been higher, and the cracks are starting to show. Investors are scrutinising grid capacity prior to committing capital, and sites with limited access to power are being pushed to the back of the queue.

Aside from affecting a site’s development potential, connectivity is now being linked to its value. In a quote from a recent Estates Gazette article, Kevin McGee, head of geoenvironmental engineering at Cundal, acknowledged a “general trend” in the sense that “once power is secured in an area, land value is increased by 20 to 30 times”. This phenomenon is affecting data centre developers in particular, the article goes on to note, but is not confined to these projects. Developers of large residential, office and retail sites, who are proposing to provide EV chargers and electric heating on their schemes, are also running into difficulties.

The problem, the article notes, is especially acute in urban and suburban areas, where ageing infrastructure is struggling to meet modern energy needs, and in areas like mid Wales and Cumbria. But capacity is better in the North East, which was highly industrialised in the past, and required huge amounts of power, because the extensive deindustrialisation that took place in this region has left the grid with more capacity.

Implications for Developers and Landowners

Private developers planning large mixed-use or industrial projects, are increasingly finding that grid connectivity will play a crucial part in the success of their scheme. Landowners with estates that lack sufficient power capacity may also face hugely expensive upgrades or risk their land or property falling into disuse.

Some developers are partnering up with energy providers early on in the planning process, while others are exploring on-site generation options, such as solar PV and battery storage. However, these solutions are not universally viable, and the need for systemic grid upgrades remains urgent.

To put it bluntly, until sufficient infrastructure is in place to bridge the gaps, developers will need to act fast and seek advice well in advance, if they are to ensure that the power needs of their developments will be met. If those connections aren’t there, their sites will be worth far less than they thought.

Evelina Grecenko, ‘The power plays behind land value calculations’, Estates Gazette, 2 August 2025.