UK energy regulator Ofgem has provisionally approved a £24 billion ($32.7bn) investment package into the country’s gas and electricity transmission system.

The funding will back the construction of 80 electricity transmission projects aimed at connecting more than 120GW of clean energy capacity by 2030. The investment is seen as the first step in an estimated £80bn ($109.2bn) program to boost the network’s capacity.

Included in the investment is £8.9bn ($12.1bn) into Britain’s high voltage electricity transmission network and more than £15bn ($20.4bn) investment in gas networks between 2026 and 2031. The investment, according to Ofgem, marks the “biggest expansion of the electricity grid since the 1960s,” and is seen as a crucial driver in allowing the country to meet its Clean Power 2030 goal.

The projects will upgrade more than 4400km (2,734 miles) of overhead lines and deliver 3,500km (2,174 miles) of new circuits, including investments offshore, doubling the total build in the last ten years.

Responding to the investment, The National Grid said it was “pleased to see Ofgem continuing to recognise the need for significant levels of investment in networks”.

“We will now review the detail contained within the draft determination to assess whether it delivers an investable overall financial package.”

However, SSEN Transmission, which operates and owns some of Scotland’s grid, said the proposal did “not go far enough to deliver the investible, financeable and ambitious framework required” to unlock the “unprecedented” levels of investment needed to deliver lower and more stable bills.“

The investment follows Ofgem’s approval of the wholesale reform of the UK’s interconnection process. Announced back in April, the reforms aim to clear the connection queue of “zombie” projects and prioritize projects aligned with the country’s strategic energy plans.

The agreement is expected to support the UK government’s Clean Power Action Plan, which could see around £40 billion ($51.3bn) of investment into the clean energy sector between 2025 to 2030.

This could have significant implications for the UK’s data center market, which is being positioned by the government as a key driver of growth. The UK government recently launched its new AI Energy Council, which aims to align the government’s clean energy objectives with the rising demands of computing power, driven primarily by the growth of AI.

In addition, the reforms are likely to allow for an expedited route to market for data centers, which were classified as critical national infrastructure last September. Data centers in the UK market currently face long lead times for connection, around five to ten years on average, with some facing connection dates as far into the future as the 2030s.

Investment in grid infrastructure will play a crucial role in supporting this expedited route to market. Last month, the National Grid announced it had commenced work on the UK’s largest electrical substation, Uxbridge Moor, in Buckinghamshire, which is expected to supply electricity to more than 12 new data centers. The substation is expected to be completed by 2029.