Construction industry leaders have warned that massive artificial intelligence data centres in Scotland could lead to a freeze on new housing developments due to their enormous energy consumption. The warning comes as the country remains mired in a housing emergency, with at least 16 data hub proposals sparking controversy.
London Precedent Raises Concerns
The alert follows reports that parts of London effectively halted new housebuilding because of strain on the local electricity grid caused by data centres. So-called “hyperscale” facilities, backed by US tech giants such as Amazon, Google, and Microsoft, require vast amounts of electricity—sometimes equivalent to the power needs of two cities.
Scottish Government Under Pressure
First Minister John Swinney faces pressure to pause large data centres. Speaking to MSPs last week, he said: “I am giving consideration to whether the Scottish Government should provide planning guidance to balance the rapid expansion of hyperscale data centres with national energy and climate goals.” Gordon Jenkins, Scotland director for the Federation of Master Builders (FMB), called Swinney’s remarks “sensible” and highlighted Scotland’s housing crisis, noting a shortfall of about 100,000 new homes not built in the last 15 years. He added: “It’s an absolute priority for the relatively new Scottish Government to focus on that.”
Industry Body Calls for Clarity
Homes for Scotland, the industry body, agreed that there must be no further delays to housebuilding schemes. A spokesman said: “If large-scale data centre proposals place additional pressure on local or regional grid capacity, then there must be a clear understanding of the implications for housing delivery. Given Scotland’s housing emergency, any national approach to data centres must ensure that home building is not disadvantaged.”
Massive Energy Demands
Two planning applications for hyperscale data centres in Fife and Stirlingshire recently went live, sparking backlash from local communities. With 16 sites already in Scotland’s planning system, each requiring enormous amounts of energy, land, and water, campaigners fear they are an environmental timebomb that will increase pollution, raise consumer bills, and even cause blackouts. If all proposed data centres go ahead, they would need an estimated 6,200 megawatts of energy—50 per cent higher than Scotland’s peak winter demand.
Campaigners Sound Alarm
Donald Campbell, from campaign group Foxglove, said: “Just one of these facilities could use up the entire output of a full-scale gas-fired power station. This will hugely increase demand for power, and risks putting yet more pressure on the electricity grid. We’ve already seen examples in London of data centres delaying the construction of badly-needed new homes. But ministers—in both London and Edinburgh—still seem set on encouraging a data centre boom without giving proper thought to the consequences. Ultimately this comes down to a choice about which is the higher priority—new homes for people, or new warehouses for Big Tech’s computer chips?”
UK Government Plans Add to Fears
The UK Government set out plans in March that could allow data centres to get priority connections to the National Grid. The Home Builders Federation warned this could create an effective “moratorium” on new homes. Last year, three London boroughs reported delays to housing developments after the electricity grid reached capacity due to data centres.
