Scotland could block hyperscale data centres over environmental concerns

National planning guidance could be introduced to stop hyperscale data centres being built in Scotland amid concerns over their environmental impact.

The SNP’s national council has backed calls for a moratorium on the facilities which house servers used in cloud computing and AI and use large amounts of energy.

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.

An SNP spokesperson said the party “fully recognised” the concerns about the impact 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.”

Talk of a potential pause has been welcomed by the Scottish Greens, but business leaders have warned that such a move risks undermining economic growth.

Green MSP Patrick Harvie said: “I know there are SNP MSPs who share our concerns about the Big Tech land grab we are seeing and who have backed our calls since we first raised this issue in parliament. 

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

“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.”

But speaking to The Herald, Sandy Begbie, chief executive of Scottish Financial Enterprise (SFE), said a moratorium would “undermine economic growth and negatively impact investor sentiment towards Scotland”.

He said: “The SNP was elected two months ago with the explicit aim of putting economic growth at the heart of government.

“The adoption of a moratorium is a policy that would undermine economic growth and negatively impact investor sentiment towards Scotland.”

Last month, Edinburgh city council called on the Scottish Government to introduce a moratorium after rejecting plans for a data centre at a former RBS building at Edinburgh Park.

Officials warned the local authority could not ban applications for data centres outright and that introducing a policy of blanket refusal was likely to be challenged in court.   

A recent report by industry group techUK found data centres could “contribute an additional £44bn to the UK economy by 2035”.

But a report by the Scottish Parliament Information Centre (SPICe) said plans for hyperscale data centres had “outpaced national and local planning policy development in Scotland”.

Asked about the issue of hyperscale data centres at the last session of First Minister’s Questions before the summer recess, John Swinney said the government was looking at planning issues as a “matter of urgency”.

Swinney said he was looking at whether it was “appropriate” for decisions to be taken by local councils, “given the scale of the developments involved”.