Ministers Turn On Miliband Over ‘Net Zero’ AI Investment Block

Written by Richard Eldred on October 26, 2026. Posted in Current News

A Cabinet split has erupted over the government’s ‘net zero’ policy, with ministers accusing Foreign Secretary Ed Miliband of blocking AI investment by opposing data centre expansion

The Telegraph has the story:

Senior Government sources told the Telegraph there was frustration with the former energy secretary, who has questioned whether AI expansion can support Labour’s Net Zero plans.

Ministers are pushing for greater central control of the national grid so that data centres, which are vital infrastructure for powering AI, can be prioritised.

However, Mr Miliband, who is now the Foreign Secretary, is understood to oppose the plans over the large amounts of electricity data centres require and the impact on the Government’s Net Zero agenda.

Investment in data centres is the latest point to divide the Cabinet. A previous rift was caused when John Healey, the Chancellor, insisted a third runway at Heathrow Airport would turbocharge the economy, despite the Prime Minister refusing to back the plan.

One Cabinet minister said that working class families were “falling out of love with Net Zero”, arguing that it was hard for them to support something which was costing them both “jobs and a summer holiday”. …

The UK has been criticised by AI firms for its high electricity prices and slow grid connections, which have led many data centre developers to go abroad or build their own gas turbines.

“You can’t have AI growth zones one minute, and Ed [Miliband] the next saying he wants Net Zero everywhere,” one industry source said. “The two don’t compute.” They added that Mr Miliband was not “remotely pro-data centres” and was not “remotely pro anything that does not drive towards Net Zero”.

Some ministers argue that if Whitehall had greater control over the grid, they could make strategic decisions to prioritise projects that promote growth in the economy. …

Last week, the Telegraph revealed that Mr Burnham had sidelined a project launched by Sir Keir Starmer, his predecessor, aimed at providing power to data centres.

The AI Energy Council, a cross-departmental effort to boost electricity supplies for AI infrastructure, has been in limbo under the new Prime Minister, with members saying the project has gone quiet.