Edinburgh Council plans to BLOCK new data centres for climate reasons 'threaten UK's AI revolution'

Industry insiders fear other councils may now follow suit. The Edinburgh vote took place shortly before the Scottish Government announced plans to embrace AI and provide a £23billion boost to the economy.

It also follows Chancellor Rachel Reeves setting out plans to make the UK the “fastest adaptor” of AI in the G7. “Green” data centres have been classed as nationally important infrastructure in Scotland, making it more difficult for planning officials to challenge new developments.

But campaigners successfully argued that the definition of "green" was not clear, saying small-scale technology such as water-efficient toilets could be used to get the go-ahead, even if the firms concerned have a large carbon footprint. On Thursday, councillors voted to pass a motion for the proposed ban.

The measure does not itself impose a ban but is the first step towards one. A report on the issue is expected in June.

The council wants any ban to remain in place until clearer guidance is received on what constitutes a “green” centre. Previous guidance on the issues was described as “incredibly unhelpful”.

An industry insider warned that the Edinburgh moratorium could have a knock-on effect on other councils. They said: “We could have moratoriums popping up across the country if we’re not careful. From the second we wake until the second we go to bed, most of what we do relies on digital service to make it happen. Data centres are essential tools – they are needed for online prescriptions, booking our flights, sending texts – everything, whether we like it or not. These centres are as green as they can be. It’s a necessary evil but we try to get as much sustainability and efficiency as we can with them.”

Venessa Moffat, Executive Director of the Data Centre Alliance, said a ban would be out of step with the UK’s aim to become a focus of AI excellence. Ms Moffat, who is also a Liberal Democrat councillor in Colchester, Essex, said: “Data centres are necessary for everything we do, from sending a text, using computer or waching Netflix. Everything goes through data centres. Edinburgh Council need to make this work, rather than saying blindly ‘no’. This is a contradictory move to the rest of the UK, and the AI growth zones strategy. I don’t think it will impact our overall goal to becoming an AI centre of excellence. Scotland produces more renewable energy than it can export south. It seems a shame to waste it.”

But Dr Kat Jones, director of Action to Protect Rural Scotland (APRS), welcomed the temporary ban. She said: This is a very important result – it demonstrates the critical importance of having a proper definition of what a ‘green data centre’ is. Due to the very serious environmental impacts of hyperscale data centres, especially related to their energy and water use, unless there a meaningful, robust and scientifically coherent definition of what a ‘green data centre’ is, then it is impossible for Local Authorities to safely assess projects. We are calling for the Scottish Government to urgently produce a well-considered and rigorous definition of a green data centre. This definition would need to be properly consulted on, due to the 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.”

Anita Bhadani, of campaign group Global Justice Now Scotland, also backed the move. She said: “The decision from the City of Edinburgh Council shows that it is taking seriously the massive environmental and energy costs of hyperscale data centres. People in the local community rightfully raised concerns that there would have been little benefit to their lives from these data centres – and their voices were heard.”

The council’s decision highlights the tension between the drive to put the UK at the forefront of AI and the need to meet our climate obligations. Earlier this year, the same council turned down plans to build a "hyperscale" data centre on the former RBS headquarters in Edinburgh Park.

A report by the city’s chief planning officer recommended the application be granted, subject to some conditions. It found “the merits of the proposal outweigh the infringements”.

But the council’s development management sub-committee turned it down. APRS campaigners argued that diesel generators would be needed to provide backup to the site, as data centres need contingency plans to provide year-round power.

The site would require energy equivalent to 100,000 idling diesel cars, APRS said. A Scottish Government spokesman said all planning proposals would be considered on their merits. It added Scotland, with its access to renewable energy, was strongly positioned to be globally competitive in AI.

It said: “The Scottish Government’s new AI Strategy for Scotland, published this week, sets out the strategic and economic importance of data centres and digital infrastructure. Thanks to the abundance of renewable energy we generate in Scotland, we are able to build infrastructure and AI capability that is clean, efficient and globally competitive. The Strategy also sets out the steps we will take to assess and mitigate potential risks, including in relation to environmental sustainability. Planning authorities have a responsibility to consider the environmental implications of all developments which require planning permission, and all proposed developments are considered on their own merits. In cases where a proposal is likely to have a significant environmental effect, these powers are further supplemented by the procedures set out in environmental impact assessment legislation.”

The vote on the ban came shortly before the Scottish Government outlined its AI strategy. Properly harnessed, the “next major frontier” of AI could add £23billion to Scotland’s economy by 2035, ministers said.

Deputy First Minister Kate Forbes said: “The unprecedented pace at which AI is increasing and evolving presents an enormous opportunity. This strategy sets out a clear plan to harness the economic and social benefits of AI responsibly with practical, tangible steps to be taken this year.”

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