Britain's state-owned electricity system operator, Neso, awarded Palantir a £21mn contract without inviting rival bids, citing critical dependencies on the US tech giant's technology. The new agreement, extending a deal from March 2023, covers essential grid processes including user connections and "skip rates." Neso argued a legal exemption applied as existing dependencies leave no reasonable alternative to Palantir. The contract lasts 10 to 22 months, pending a future competitive procurement process.

This decision follows the Ministry of Defence's awarding of a £240.6mn follow-on contract to Palantir without tender. The news fuels scrutiny of the UK government's reliance on US technology, with Labour MP Chi Onwurah warning that critical national infrastructure dependent on a single US-based supplier raises major national security concerns. The Science, Innovation and Technology Committee, chaired by Onwurah, has urged ministers to exercise a 2027 break clause in the controversial £330mn NHS contract.

Neso, formerly part of FTSE 100 National Grid, was nationalised in October 2024. The operator is currently under investigation for grid management during a late June heatwave. Critics argue the ageing computer systems and outdated network hinder efficiency, though Neso claims constructive engagement to improve performance.