Call for AI data centre freeze ‘would hit economy’ – Daily Business

Ravenscraig data centreRavenscraig data centre
Huge data centres are proposed like this one at Ravenscraig

Scottish ministers are facing calls from a key SNP policy making body to impose a temporary halt on large scale data centre developments amid warnings from business that such a move will harm the economy.

The party’s National Council has responded to growing protests against proposed projects across the country as communities express concern about the impact of data centres on energy resources and the environment.

Following a vote by the council, it will now join the Scottish Greens in calling for a Scottish Government-led moratorium.

An SNP spokesperson said: “AI data centres are evolving at pace, and the SNP fully recognises the concerns about the environmental impact and the impact on energy resources of hyperscale data centres.

“The Scottish Government is currently reviewing what action can be taken to help balance the rapid expansion of such centres with our national energy and climate goals – including a potential pause on applications.”

Business leaders have warned that a freeze on data centre developments risk holding back growth and putting Scotland at a competitive disadvantage.

Sandy Begbie, chief executive of Scottish Financial Enterprise, has called data centres “critical national infrastructure”, and warned earlier this year that a moratorium would deter investors.

Local authorities in Edinburgh and East Ayrshire have already called for the Scottish Government to implement a moratorium and to set out more clearly what defines a green data centre.

The Scottish Greens welcomed the SNP council’s call. MSP Patrick Harvie said: “The Scottish Government’s tone is beginning to shift. I hope that these reports will encourage them to go further and faster in putting a stop to the speculative applications that we are seeing.

“This is an important step by the SNP’s National Council, and I hope the Scottish Government now acts on it.

“Scotland is facing a wave of hyperscale data centre applications that could have profound consequences for our energy system, our environment and our communities.”

There are currently 24 proposed hyperscale data centres across Scotland. If all are approved, they could consume up to one and a half times Scotland’s peak electricity demand, putting huge pressure on the grid, renewable energy supplies, water resources and climate targets.

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