By Salma El-Sakka
Claims that data centres will raise household energy bills are "misinformation", MSPs heard at Holyrood's Climate Action Committee on Thursday. Representatives from the technology sector argued that Scotland's cooler climate and abundant renewable energy make it a natural location for such facilities, and that many environmental concerns have been overblown.
Industry representatives challenge concerns
Craig Melson, associate director of techUK, told the committee that fears about higher power bills have occurred in parts of North America but do not apply to Scotland. He said the industry has struggled with rising concern from councils and residents, and emphasised that data centre owners have a financial incentive to keep water and energy usage low. Melson compared the situation to building an A-road through a town, stressing the need for community engagement and mitigation.
Renewable energy and planning pipeline
Andrew Weir, chief executive of ScotlandIS, said he could not guarantee consumers would not face higher bills but noted many factors influence energy costs. MSPs also heard that data centre construction could help fund renewable projects. Melson highlighted that UK energy costs are a hurdle: a 100-megawatt hyperscale facility could cost over £200 million annually in energy, compared with £60 million in Sweden and £50 million in the US. He added that companies are submitting speculative applications, artificially inflating the number of proposed centres.
Experts warn of electricity demand
Dr Alejandro Gallego Schmid, a sustainability expert from the University of Manchester, said the nine gigawatts of data centre capacity in the Scottish planning pipeline would consume nine times the electricity of every Scottish household combined. He warned this demand coincides with Scotland's push to decarbonise transport and heating. Professor Wim Vanderbauwhede of the University of Glasgow advised capping data centres at 500 megawatts, stating larger capacity would be highly problematic for meeting net-zero targets.
