Plans to build more hyperscale AI data centres in Scotland could lead to higher electricity prices for consumers and pose a challenge to climate change targets, MSPs have been informed. Scotland has been identified as a prime location for these centres due to its significant renewable energy potential, primarily from wind.
However, academics have cautioned that this growth might still necessitate increased reliance on gas for electricity generation during periods of low wind and solar power. This situation has reportedly contributed to rising prices in the Republic of Ireland and the US. Dr. Callum MacIver, a research fellow at the University of Strathclyde, stated that adding demand generally puts pressure on meeting decarbonisation goals, as new demand is likely to increase fossil fuel use when renewable sources are not consistently available.
Conversely, the National Energy System Operator (Neso) suggests that more data centres in Scotland could help reduce electricity prices by absorbing surplus renewable energy. Matt Magill from Neso also highlighted that modern data centres offer flexibility, with large AI operators potentially able to shift data handling globally to balance supply and demand.
The Holyrood Economy, Tourism and Energy Committee is currently examining the energy consumption implications of placing additional data centres in Scotland. A key concern raised is how the increased infrastructure costs associated with the growth of AI data centres will be distributed between operators and consumers.