Green concern
AI plan unveiled as council halts data centres
A plan to turn Scotland into a leader in artificial intelligence has been unveiled just a day after Edinburgh City Council put a temporary halt on data centres.
Independent analysis forecasts that AI could contribute £23 billion a year to the Scottish economy by 2035.
Deputy First Minister Kate Forbes presented a new report saying that nearly 300 AI-focused companies are already operating in the country.
However, the city council yesterday backed a motion from the Green group of councillors calling for a moratorium on data centre development until the Scottish Government issues clear guidance on what defines a green data centre.
The council has requested a report on whether a ban could be imposed. It comes after campaigners raised concerns over the environmental impact of AI data centres and a lack of a clear regulatory definition.
It follows an application for a proposed data centre in Edinburgh that was rejected on the grounds that it didn’t constitute a ‘green’ data centre and went against Edinburgh’s City Plan which sets out how land should be used.
Trevor Ivory, partner at global law firm DLA Piper, noted that a report is due to come back to council committee in June.
“Even if a moratorium were later adopted, its legal effect in the Scottish planning system would be limited,” he said.
“Planning in Scotland remains plan-led. A council motion does not rewrite the development plan. In practice, that means any future moratorium would be one factor in decision-making rather than a silver bullet.”
Instead, he argues that the real policy gap is that there is still no settled, practical definition of what qualifies as a ‘green data centre’ for these purposes, which creates uncertainty for both developers and planning authorities.
Speaking at today’s launch, Ritchie Somerville, deputy director at Edinburgh University’s National Supercomputing Centre, told attendees that “planning is not just about land, it’s about operation,” adding that location is an issue. “We have to be pragmatic. Some locations will not be right,” he said.
Commenting on the rapid growth of the AI sector, Santosh Takoor, head of public sector cloud and AI platform at Microsoft UK, said: “Right now it is like the wild west. Get what you can.”
Speaking to Daily Business after today’s presentation at the Edinburgh Futures Institute, Ms Forbes said guidance is set out in the national planning framework.
Business Minister Richard Lochhead, who also spoke at the launch, said the government would be happy to engage in a dialogue with anyone who has concerns about data centres.
“Other local authorities are using the guidance in the national planning framework now,” he said.
The Scottish Government’s official position is that to be considered a green data centre, planning authorities “may wish to consider criteria such as the extent to which the data centre is powered from renewable energy sources; makes use of energy efficient technologies; seeks to minimise water consumption; and supports the re-use of excess heat.”
This has prompted concerns that developers can achieve green status by implementing smaller-scale sustainable technology, such as energy-efficient lighting or water-efficient toilets, while still producing a large carbon footprint.
In a statement to the media ahead of last night’s vote, Green councillor Alys Mumford, who brought the motion, said: “We know that Edinburgh residents are really worried around the impact that data centres could have on our communities and our climate.
“The Scottish Government has said that so-called ‘green’ data centres are vital for our national infrastructure but have failed to provide any definition of what green actually means, despite repeated requests. Without this, developers are free to make claims about their environmental credentials with nothing to judge them against.
“In the face of the climate and nature emergencies, and the growing understanding of the huge energy and water consumption required by AI, it is right that Edinburgh agrees to have a moratorium on any data centres until we can be reassured that they are more than simply green by name.”
The call for a moratorium has been supported by the campaign group Action to Protect Rural Scotland. In a written deputation to the council, the director Dr Kat Jones said: “APRS are pushing the Scottish Government to urgently produce a well-considered, meaningful and rigorous definition of a green data centre, with accompanying guidance for local authority planners and decision makers.
“Our view is that this definition would need to be properly consulted on, because of the importance of getting this right due to the vast environmental impacts of hyperscale data centres, as well as the impacts they would have on the grid, electricity prices, local countryside and communities, as well as our climate targets.”
The Scottish Government’s new five-year AI Strategy will focus on “harnessing the economic potential of the technology, helping ensure all people and businesses can benefit from it”.
Among its plans, the government will establish an independent expert advisory board, appoint AI Champions to represent priority sectors and regions, and create a Future Jobs Panel to assess AI’s impact on the workforce.
“The unprecedented pace at which AI is increasing and evolving presents an enormous opportunity,” Ms Forbes told a packed room at the EFI. “It has the potential to be genuinely transformative – for every sector of our economy, and for people from all backgrounds and communities.
Mr Lochhead said: “AI is advancing faster than any technology we have ever seen and Scottish universities and businesses are at the forefront of the incredible services and products it is generating.
“Almost 300 AI‑focused companies now operate in the country – many of them home-grown, university spinouts. They are growing fast, exporting products, attracting investment and competing internationally.
“Global companies are meanwhile investing is our skills and expertise which is a major signal of confidence and tells the world that Scotland is a serious player in the development of AI as a force for good.”
Sandy Begbie, chief executive of Scottish Financial Enterprise, recently claimed that the opposition to data centres would send the wrong signals to the investment community.
AI is also seen as a risk to jobs, with HSBC the latest to warn of the impact it could have on the workforce. The bank could shed 20,000 jobs globally over the next three to five years as it harnesses AI to streamline many of its administrative functions.
According to Bloomberg, chief executive, Georges Elhedery, is weighing up how the use of AI could reduce the need for people in back and middle-office roles. Bloomberg said the cull could affect 10% of the bank’s global workforce of 210,000.
HSBC has about 34,700 people working in the UK, suggesting around 3,500 possible job cuts if Britain were to bear a proportionate hit.
Who is spearheading Scotland’s AI boom?
Lanarkshire has been identified as Scotland’s AI Growth Zone, designed to accelerate the development of AI-enabled data centres by streamlining planning processes.
The zone is being delivered by local firm DataVita, in partnership with AI cloud firm CoreWeave, with a new community fund planned as part of the project expected to deliver more than 3,400 jobs, including 800 high‑value AI and digital infrastructure roles.
Edinburgh, which has developed a strong reputation in the tech space, is being mentioned as the next AI zone in Scotland. The city hosts multiple UKRI centres for doctoral training in AI, the National Robotarium and the Generative AI Laboratory.
ARCHER2, the UK’s national supercomputer is based at Edinburgh University, and the university will host the new £750 million UK National Supercomputing Centre, one of the most powerful AI research systems in the world.
Glasgow is home to the ISAC3 Centre, which is pioneering new research into ‘cognitive cities’ and the Centre for Data Science which aims to support collaborative and ethical research to tackle social challenges. University of Strathclyde hosts the Socially Progressive AI Lab (SPAILab), an interdisciplinary research hub dedicated to ensuring that AI is developed in ways that serve the public good.
Aberdeen enjoys a strong reputation for linking AI with the energy sector, industrial technologies and offshore applications whilst Dundee is increasingly prominent in the digital, creative, and health sectors. Inverness and other parts of the Highlands show strength in consultancy-led initiatives and rural applications of AI. The South of Scotland is building capability in both advanced manufacturing and responsible AI development.
Edinburgh-based Wordsmith AI has emerged as one of the UK’s most successful legaltech start-ups, reaching a $100 million valuation just 18 months after launch, believed to be the fastest ever for a Scottish start-up.
Malted AI, also based in Edinburgh, is gaining international attention for its specialised approach to enterprise AI and positions Scotland at the forefront of next generation, efficient AI model design.
Lenovo is establishing an AI Research Hub focused on advanced model development and enterprise applications. This investment strengthens Scotland’s innovation ecosystem and builds international confidence in Edinburgh as a growing centre for AI research and high value digital work.
Glasgow-based Gigged.AI is scaling rapidly as enterprises struggle with AI-driven skills shortages. Gigged.AI exemplifies Scotland’s leadership in ‘AI for productivity’ and the future of work.
AI Pathfinder is pledging an initial £385m and a long-term commitment of £15 billion into Irvine, Ayrshire to develop one of the largest AI infrastructure hubs in Europe. It will have with up to 6,400 GPUs and create hundreds of skilled jobs.
Exception, based in Edinburgh, is among the digital transformation companies providing strategic consultation on AI.
The public sector is also helping to drive, and benefit from, AI. Organisations are deploying AI tools to improve service quality, streamline administrative processes, and enhance analytical and decision‑support capabilities.
This work is guided by two key national frameworks: Scotland’s Public Service Reform Strategy: Delivering for Scotland and the Digital Strategy for Scotland: Sustainable Digital Public Services Delivery Plan 2025–2028. Together, these strategies set a clear direction for the modernisation of public services, ensuring the effective, responsible, and outcome‑focused use of AI.
An example is SPARRAv4, a major upgrade to Scotland’s national emergency admissions prediction tool, using AI to analyse over 4.8 million health records and identify people most at risk of emergency hospital care in the next year, improving patient outcomes and reducing pressure on A&E.
FinTech Scotland provides a national focal point for Scotland’s FinTech cluster, while initiatives such as the Financial Regulation Innovation Lab, the Finance and Health Lab and the Smart Data Foundry enable testing and safe access to financial data for research and development.
AI plays a major role in Scotland’s fast‑growing space and satellite sector. AI is integral to satellite data processing, geospatial analytics, climate monitoring and environmental compliance.
Scottish companies are developing advanced AI systems that analyse satellite data at scale, enabling rapid and accurate insights that support areas such as climate resilience and disaster response for domestic and international applications.
AI is creating new opportunities across Scotland’s creative sectors by enabling new forms of digital creativity. Publishing Scotland supports this through practical guidance on AI tools and a framework for developing responsible AI principles, helping organisations adopt new technologies safely and with confidence.
However, the sector also faces risks, including concerns about intellectual property and the impact of AI on creative work. Protecting creators’ rights, supporting ethical practice and ensuring people can benefit from ethical and trustworthy AI will be essential to sustaining a fair and resilient creative economy.
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AI data centres, without strict regulation of AI would be an open door to the global organised crime industry who are already here and using AI deep fake and data / identity theft, as a direct result of no meaningful regulatory framework. AI data centres without strict regulation are also a dangerous threat to public freedom of choice by any government that may choose to follow an Orwellian state control surveillance regime, such as Keir Starmer’s proposed ID card obscenity.
This must be opposed at all levels to stop the abuse posed by AI being controlled by a few greedy unscrupulous and dangerous wealthy individuals & corporations.