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Scotland Could Freeze New Datacentre Projects, Putting UK's AI Plans at Risk

July 6, 2026 · The Guardian

Scotland's ruling party voted to pause all new datacentres, which could block a key part of the UK's plan to build artificial intelligence technology.

Scotland may soon freeze the building of all new datacentres after the Scottish National Party (SNP) voted to pause these projects. The SNP is the main political party that runs the Scottish government. The vote happened last Sunday at the SNP's national council meeting, and the decision has been sent to Scotland's government leaders to act on. This could put a major part of the United Kingdom's plan to grow artificial intelligence (AI) technology in serious danger.

A datacentre is a large building full of computers that store and process huge amounts of data. Many AI programs need datacentres to run. The UK government had chosen Scotland as a top spot for new datacentres because Scotland has a lot of clean, renewable energy, like wind power. But the SNP's vote could stop many of those plans in their tracks.

The SNP's vote calls for a moratorium, which means a temporary stop, on all new datacentre projects not yet approved for construction. Lesley Backhouse, who attended the SNP meeting, said Scotland's datacentre plans were overdevelopment and were intrusive and not keeping with the local environment. She was concerned that too many massive buildings were being planned for rural, or countryside, areas of Scotland. Communities there worried their land would be taken over by giant developments that would not bring the promised jobs and money.

One of the biggest planned projects is in Lanarkshire, a region of Scotland. It was set to become an AI growth zone, meaning a hub for building AI technology across the UK. However, a news investigation found that the UK government and developers overstated how practical and ready this project really was. People in the local community had raised concerns, but those concerns were not taken seriously.

Graham Simpson, a member of the Scottish Parliament from North Lanarkshire, said he does not think anyone wants to ban datacentres entirely. He said there needs to be a proper piece of work at the government level to decide how many the country needs and what is our capacity for them. His point was that the government should plan carefully instead of rushing ahead. That kind of careful planning has been missing so far.

The SNP's resolution points out that there are already 24 hyperscale, or extremely large, datacentre projects being planned in Scotland. Together, they would use more than one-and-a-half times the electricity Scotland uses at its busiest moment. That means Scotland does not have enough power to run all of them, even with its strong renewable energy supply. Critics say this shows the plans went too far, too fast.

Problems with AI planning are not just in Scotland. Another AI growth zone in North Tyneside, England, was described as more of a publicity stunt than a real project. The maker of the popular chatbot ChatGPT, a company called OpenAI, was supposedly involved, but the project was not truly viable. Several other large UK AI projects have also been called phantom investments, meaning the promised money and jobs never appeared.

Chi Onwurah, the chair of an important UK science and technology committee in Parliament, said the UK's AI investment strategy has been very opportunistic. She meant the government grabbed at promises of investment without having a real, solid plan. She said promised investments were often announced but never delivered. She also said plans for AI growth zones lacked clarity about how local people would actually benefit.

Onwurah's committee warned that the UK needs to protect its ability to access AI technology without depending too much on other countries. This warning came after the United States government blocked other nations from using tools made by a leading American AI company called Anthropic. The committee said this should be a powerful reminder that the UK may not be able to count on even its allies for access to vital technology. In other words, even friendly countries might cut off the UK's access to important tools.

The UK government launched a £500 million fund called the Sovereign AI Fund in April to support British AI founders, meaning people who start new AI companies in the UK. However, a freedom of information request revealed that four of the nine companies receiving money from the fund are actually controlled by American businesses. That discovery raised new questions about whether the fund is truly building British independence in AI. Many people now want the next government to come up with a clearer, stronger plan.

"I don't think anyone is arguing that we should not have any datacentres in the UK or Scotland."

Comprehension quiz preview

1. What did the SNP's national council vote to do regarding datacentres in Scotland?

  • ABuild 24 new hyperscale datacentres immediately
  • BApprove the Lanarkshire AI growth zone
  • CFreeze all new datacentre projects
  • DGive more money to American AI companies

2. How much electricity would all 24 planned hyperscale datacentres in Scotland use?

  • AHalf of Scotland's peak electricity use
  • BExactly the same as Scotland's peak electricity use
  • CTwice Scotland's peak electricity use
  • DMore than one-and-a-half times Scotland's peak electricity use

3. What is the name of the UK government fund set up to support British AI companies?

  • AThe Renewable Energy AI Fund
  • BThe Sovereign AI Fund
  • CThe SNP Technology Fund
  • DThe North Tyneside Investment Fund

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