The SNP has joined the Scottish Greens in calling for a Scottish Government-led moratorium on AI data centre developments, following a vote by the party’s National Council.

The move comes after months of community protest against proposed sites across Scotland, as well as growing pushback from MSPs and local authorities. It also follows similar calls from the Scottish Greens, as well as councils in Edinburgh and East Ayrshire, both of which have urged the Scottish Government to take a more cautious approach to large-scale data centre development.

Edinburgh Council backed a move towards exploring a temporary ban earlier this year, after councillors raised concerns over the lack of a clear definition of what constitutes a ‘green data centre’. That vote did not immediately introduce a ban, but it did underline the growing concern that local authorities are being asked to make decisions on major AI infrastructure without enough national guidance.

The intervention by the SNP is the biggest so far, however. It is the largest party currently in the Scottish Parliament with 57 MSPs, which makes it ultimately responsible for the decisions of the Scottish Government. 

Following the decision to back a temporary moratorium on AI data centres, a SNP spokesperson noted, “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.”

A huge u-turn for the Scottish Government

The Scottish Government has previously been supportive of green data centre development. Under existing guidance, planning authorities are told they ‘may wish to consider’ factors such as renewable power, energy-efficient technologies, minimised water consumption, and the re-use of excess heat.

Despite being supportive, however, there’s been a groundswell of opposition to AI data centres in Scotland. Action to Protect Rural Scotland has been especially vocal, with it calling for a nationwide moratorium back in March, citing the need for the Scottish Government to investigate the industry’s impact on electricity demand and set a clear definition for what it means by ‘green data centres’.

While Scotland hasn’t traditionally been a major data centre market, it has recently seen growing interest from a number of players primarily thanks to its dominance in the renewable energy sector. ILI Group recently submitted plans for a £5 billion data centre campus near Fife, which is the first in a planned network of large-scale digital infrastructure projects across Scotland’s central belt.

Given the fight for power across the UK, Scotland’s appeal to data centre developers is not difficult to understand. The country already has a large base of renewable electricity generation, particularly from onshore wind, while a major pipeline of offshore and onshore wind projects has made it an obvious candidate for companies looking to market new AI infrastructure as low-carbon.

That has also been part of the Scottish Government’s own pitch. Scotland has previously sought to position itself as a hub for green data centres, arguing that its renewable energy resources could support facilities with minimal reliance on fossil fuels.

However, that is also where the argument becomes more complicated. Having a large amount of renewable generation in Scotland does not automatically mean that hyperscale AI data centres can access enough clean power, at the right sites, at the right time. Grid connection delays, the intermittency of renewable generation, and the sheer scale of demand from some of the proposed facilities have all raised questions over whether the projects can realistically deliver on their green claims.

In the event that the clean electricity isn’t able to provide enough power to cover a data centre’s needs, some Scottish residents are concerned that developers could use on-site generation fuelled by fossil fuels. That is in contravention of the ‘green’ image the Scottish Government has tried to portray for the data centre industry. 

A growing problem for the UK’s AI ambitions

Scotland would not be alone in considering a moratorium on data centres, but it would be one of the most sizable close to home. There are other areas across Europe that have looked to similarly curb data centre development, such as Ireland and the Netherlands, while the US state of New York is poised to become one of the biggest markets looking to hit the pause button. 

It comes at an awkward time for the data centre industry, which is trying to scale to meet the ambition that is promised by AI. That is coming at a time when there is huge public opposition, however, predominantly fuelled by what’s happening over in the United States, and the underinvestment in grid infrastructure across Europe. 

While it’s not ideal timing for the data centre industry, it is also likely to prove awkward for both the Scottish and UK Governments, with data centres increasingly viewed as essential to the growth of the AI economy.

The UK Government has been eager to attract investment into AI infrastructure. However, the backlash now shows the difficulty of balancing those ambitions with local opposition, grid constraints and climate targets.

But it’s also true that many are fearful of the sheer scale of data centre developments, with eyewateringly large figures constantly banded about showcasing the amount of power that the industry will require over the coming years. That fear may not be wellfounded, however, with many in the industry arguing that speculation is not the same as reality – and the scale of development is unlikely to reach the dizzying heights that have been suggested. 

Until the industry can address its ongoing PR problem, however, it’s likely that Scotland won’t be the last in considering a moratorium on data centre development.