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January 26, 2026

The Data Centre Dilemma

Powering the Powerhouses

Last month, I stumbled across a stat that made me do a double take and spill my oat flat white. Pacific Gas & Electric (PG&E), America’s largest utility, is juggling a 10 GW pipeline of demand from data centres alone. That’s enough juice to power 7.5 million homes.

If you’re leading a tech-driven company in the UK — whether fintech, greentech, or just trying to land your next big data hire — you might think that’s a California problem. But what PG&E is doing now could be a blueprint for the future of infrastructure planning, recruitment, and the tech strategy you haven’t written yet.

So, what are they actually doing? PG&E is tossing out the one-size-fits-all utility playbook. Onsite generation, near-instant connectivity to the grid, and tighter integration with local communities. It's a bold shake-up — and one that UK founders and scale-up leaders should take more than a passing interest in.

Why Load Growth Is Everyone’s Problem

Data centres aren’t just hungry — they’re outright ravenous. The rise of AI, cloud-native everything, digital twins, TikTok dances explained in 8K — it’s all piling pressure onto power grids already strained by the net-zero transition.

PG&E’s case? A perfect storm:

Explosive data centre demand (10GW and counting)
Legacy grid systems unable to serve new loads fast enough
Communities wary of infrastructure buildouts in their backyards

So they stopped trying to win the race with just bigger wires. Instead, they’re building a new model:

Onsite gas generation for rapid deployment (to be replaced with green hydrogen down the line)
Modular substation design to speed up approvals and installations
Deeper partnerships with cities and developers to align needs faster

That’s not just innovation — it’s pretty damn pragmatic. As they say, when the grid can’t come to the data centre, the power has to pack its bags and move in next door.

What This Means for UK Tech Leadership

Here's the thing: our own version of this grid crunch is already happening. Ever tried launching an AI product, scaling a cloud platform, or hiring data engineers — only to find your tech stack (or infra partner) is stuck in 2015?

The UK doesn’t yet face a 10GW mountain from hyperscale data centres — but we do face:

Legacy thinking in infrastructure procurement
Hiring bottlenecks in niche skill roles (especially in data, cyber, and cloud)
Underestimated operational risks from over-centralised systems

PG&E’s model is fascinating for one reason: it’s flexible. Their new approach is built on distributed resource planning, scenario testing, and acknowledging that the game has changed. Founders and CIOs would do well to consider this lesson: if your operating model assumes linear growth or centralised everything — you’re already behind.

Infrastructure Isn’t Just Wires and Servers

One of PG&E’s biggest pivots is social: repositioning the utility as part of the community, not just a supplier. Think shared generation, faster permitting through trust, and mutually beneficial timelines between private and public initiatives.

Now think about your company. Are you building your team like a fortress, or a platform?

Ask yourself:

Are my hiring processes designed around what we want — or what the talent actually needs?
Have we built flexibility into our infrastructure and people plans?
Are we prioritising short-term speed over long-term adaptability?

Infrastructure is no longer just metal and megawatts. It’s hiring pipelines, data strategy, and the culture that binds them all together. Just like PG&E couldn’t wait for the grid to catch up, neither can you wait 6 months for that DevSecOps unicorn to stumble across your InMail.

Embrace the Onsite Energy Mindset

PG&E’s model doesn’t mean ditching net zero or giving up on renewables. It’s a reflection that reality is messy and timing matters. That you can solve long-term problems with short-term solutions — as long as you plan for both.

So what does this ‘onsite energy mindset’ look like for tech leaders?

Right-fit hiring — not just by tech stack, but by delivery timelines and context
Putting agility over purity — skill hybrids, flexible delivery teams, bridging roles
Redesigning workflows to match actual capability, not idealised structures

Sometimes that means hiring a contractor to bridge a 9-month gap while your perm unicorn search drags on. Sometimes it means rethinking the project entirely. But always — always — it means having a Plan B with teeth.

Don’t Wait for the Grid

PG&E aren’t waiting for miracles. They’re building faster, negotiating better, and meeting real-world demand with real-world solutions.

UK scale-ups and innovation leaders — we should be doing the same. Whether it’s data centres, hiring plans, or operational bottlenecks, the mindset shift is the same: stop waiting for the system to change, and start building around it.

Need help decoding where your recruiting infrastructure is creaking? Or plotting a people roadmap that won’t implode at Series B? I know a guy. Let’s make your utility model fit for the future – no gas required.

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