Representatives from the technology sector told the Scottish Parliament’s Net Zero, Energy and Transport Committee on Thursday, November 5, 2026, that concerns regarding the impact of data centres on household energy bills are based on misinformation. The committee is reviewing the expansion of hyperscale data centres—large-scale facilities that house computer servers—which has increased following growth in artificial intelligence technology.
The testimony comes as Scotland evaluates several planning applications for these facilities. Proponents suggested Scotland’s cooler climate makes it a suitable location for data centres, which generate significant heat, while skeptics raised concerns about the environmental impact and the volume of electricity required to power them.
Craig Melson, associate director of techUK, told MSPs that while data centres have affected power prices in parts of North America, he disputed claims they would raise bills in Scotland. Melson noted that Scotland currently pays billions each year to turn off renewable energy sources due to overabundance. Conversely, Dr. Alejandro Gallego Schmid of the University of Manchester testified that the nine gigawatts of capacity currently in the Scottish planning pipeline would consume nine times the electricity used by every household in Scotland combined.
The scale of the proposed projects involves significant financial and resource commitments. Mr. Melson reported that a 100-megawatt hyperscale facility costs more than £200 million in energy in the UK, compared to £60 million in Sweden and £50 million in the United States. Residents and local councils in areas where these facilities are proposed would see large-scale infrastructure development similar to major road projects. However, Mr. Melson noted the current number of applications is likely "artificially inflated" because companies are filing multiple applications in anticipation that some will be rejected.
The outcome of these planning applications will determine how Scotland allocates its renewable energy "cake," as Dr. Schmid described it. Professor Wim Vanderbauwhede of the University of Glasgow recommended that the Scottish Government cap total data centre capacity at 500 megawatts to avoid interfering with decarbonization targets for other sectors. The committee has not yet set a date for a final recommendation or vote on data centre planning regulations.