Builders have warned massive AI data centres in Scotland could result in a freeze on property development due to their colossal energy demand.
Construction industry figures issued the warning as the nation remains locked in a housing emergency – while controversy mounts over proposals for at least 16 Scots data hubs.
It follows revelations parts of London had to effectively halt new housebuilding because of stress on the local grid from such sites.
So-called “hyperscale” centres, bankrolled by US tech firms such as Amazon, Google and Microsoft, require enormous amounts of electricity to operate – in some cases, carrying the power needs of two cities.
First Minister John Swinney is under pressure to halt large data centres and 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.”
View 3 ImagesFirst Minister John Swinney during First Minister’s Questions for back bench members at the Scottish Parliament in Holyrood
Gordon Jenkins, Scotland director for the Federation of Master Builders (FMB), said Swinney’s comments were “sensible”, adding: “In Scotland we have a housing crisis. There’s a shortfall of about 100,000 new homes not being built in the last 15 years.
“It’s an absolute priority for the relatively new Scottish Government to focus on that.”
In a statement, industry body Homes for Scotland also agreed there must not be any 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.”
It comes after two planning applications for hyperscale data centres in Fife and Stirlingshire went live in recent weeks, sparking a huge backlash among affected communities.
With 16 sites already in the Scottish planning system – all of which require massive amounts of energy, land and water – campaigners fear they are an environmental timebomb that will lead to increased pollution, rising consumer bills and even blackouts.
If all data centres proposed went ahead, it’s calculated they would need an astonishing 6200MW of energy – 50 per cent higher than peak winter demand for the whole of Scotland.
View 3 ImagesHousebuilders wary of data centre threat(Image: Chris Ratcliffe/Bloomberg via Getty Images)
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?”
The UK Government set out plans in March which could allow data centres to get priority connections to the National Grid, with the Home Builders Federation warning this could create an effective “moratorium” on new homes.
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Three London boroughs reported delays to housing developments last year after the electricity grid reached capacity due to data centres.
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