SSP Co-Spokesperson Natalie Reid discusses Data Centres and their environmental and economic impact. This series – originally published as four articles in the Scottish Socialist Voice – presents a socialist analysis of this critical issue.
The four parts of this piece are: The False Economy of Data Centres; Scotland and Datacentres; The Fightback; and Knocking on Holyrood’s Door.
Part One: The False Economy of Data Centres
Generative AI is everywhere. It has crash landed into almost every aspect of our personal and professional lives, predominantly in the form of Large Language Models such as Chat GPT, Gemini, Co-Pilot, and Grok. They’re presented to us as a free and accessible way to be more efficient at work, have more fun online, and fast track our creative projects. But it’s become increasingly clear that “free” and “fun” does not always translate to “harmless”. Whether we’re asking generative AI to write us an email, create a funny avatar, or tell us what to have for dinner, we are feeding it. And AI is hungry – for our data, our creativity, our ideas, our likeness.
However hungry AI is, it’s the thirst of its power source, hyperscale data centres, that’s currently grabbing the headlines. In a world already dangerously close to “the point of no return” in the climate crisis, the introduction of a rapidly growing industry that so heavily relies on large quantities of water and energy, should send alarm bells ringing.
Data centres are not new. We have been using them for decades to power computers, the internet and other IT infrastructure. In the simplest terms, data centres are home to the computer systems and hardware that power our online lives. Data centres started out as small rooms of equipment cooled by fans. As our reliance on being online grew, data centres grew with it; some expanding to the size of large buildings in order to house multiple servers.
These larger, modern day data centres run so hot that fans no longer cut it. Cold water is needed for rapid cooling, and lots of it.
The expansion of Generative AI takes this scaling a step further – it needs warehouses full equipment, known as hyperscale data centres. This means more land to build on, more IT equipment, more energy to run, and more water for cooling.
Money talks
Big tech is throwing its weight and money behind AI, hailing it as the key to all future
technological breakthroughs, and therefore the route to riches (as if they aren’t rich enough already). All around the world, capitalist governments and investors are trying to cash in on this latest “big business”. Morgan Stanley estimates that nearly $3 trillion will be invested globally in data centres by 2029. Countries all over the world, from the US, to China, Saudi Arabia and the UK, want that investment in their backyard. With dollar signs in their eyes blocking their view, governments around the world are willing to risk everything to accommodate big tech, including the very water we drink.
Need more water for cooling? No problem, take our drinking water! Hyperscale data centres need millions of gallons of water per day to keep cool. Australia, desperate to get in on the ground floor already has 260 data centres up and running, and dozens more in the works. The water demand to service data centres in Sydney alone is forecast to be larger than the volume of Canberra’s total drinking water within the next decade. Across the United States, communities near data centres report water pressure so low that they cannot take showers or even run their kitchen taps.
Need more energy? No problem, use and abuse our grids! When hyperscale data centres come to town, they often overwhelm local power grids, causing a surge in demand and the need for expensive upgrades to the grid in order to accommodate the energy-guzzling systems needed for them to function, resulting in an increase to local energy prices.
Colossus, Elon Musk’s data center in Memphis, can consume as much electricity over the course of a year as 200,000 American homes. And Colossus 2 is set to be even bigger…
Need a power source? No problem, use our dirty fossil fuels! Although there are many promises from big tech that in the future their data centres will run off of clean energy, right now the power they use comes from fossil fuels, predominantly natural gas. Another blow to the fight against climate change.
False economy
With all this risk and upheaval, you would think the payoff must be so large, it makes it all worthwhile…right?
Data centres may in the first instance boost the local economy. They create a flurry of jobs – construction for the buildings, IT roles for the technology, etc., which in turn may create an uptick for the local economy -but once data centres are up and running, their benefit to the local area starts to decrease rapidly. IT roles at a data centre are not the usual Monday – Friday, 9-5, they are more likely to be in the form of maintenance, carried out remotely and periodically, and therefore they do not create stable, long term employment opportunities.
Moreover, the profit driven from the data centres will not be for the benefit of the local economy, it will be for the benefit Google or Meta HQ, or Elon Musk. Whilst the benefits of a hyperscale data centre in your local community may be short lived, the costs are certainly not. Communities in the United States with hyperscale data centres have reported water shortages, air pollution and increased energy costs. The land given over to house the buildings is ripped from local hands- land which could have been used for housing, parks, a space for the community, is now a water-guzzling, energy burden for generations to come.
AI Boom – or bust?
As socialists, we understand the boom-bust nature of capitalism. Even as the US and Australia put the pedal to the metal trying overtake to China as the AI capital, doubts of just how transformative AI can be are creeping in.
Some say the more money we put into AI, the more likely it is that it will become so advanced, it will solve its own energy problem – that AI itself will figure out how to power AI in an energy efficient way. Maybe. Probably. Almost definitely. Only now, after billions of gallons of water, miles of rural land paved over, and gigawatts of energy consumed, are the markets and tech experts starting to ask…but what if it doesn’t?
With hotter countries naturally needing more water for cooling, the industry and has turned its eye to colder climates, including Scotland. The weather here may be colder, but with the demand for AI heating up, its time for us to ask – is there an ethical way to build and run hyperscale data centres?
Part Two: Scotland and Data Centres
Capitalism’s latest “filthy rich” scheme has arrived in the form of hyperscale data centres, with governments all over the world clamouring at the opportunity to take a cut and become the next “data centre capital”. But not everyone is welcoming this new infrastructure with open arms. Many are concerned about the environmental impact and long term value to local communities. Tech companies are keen to explore cooler climates to house their data centres in an attempt to reduce the amount of water needed to cool their hot-running, energy guzzling machines. As the demand for AI heats up, it’s time to ask – is there an ethical way to build and run hyperscale data centres in Scotland?
The Edinburgh ban
In early 2026, Edinburgh Council rejected a planning application for a data centre to be built in South Gyle. The main concerns were unsurprisingly related to energy use and environmental impact. Following this, after pressure from local environmental campaigners, Edinburgh Council took the decision to issue a temporary ban on the development of data centres in the city. In the future, companies wishing to build a data centre in Edinburgh will have to prove that it will meet the criteria of what the Scottish Government call a “green data centre”. They have such high hopes in the idea of green data centres, that they’ve classified them as “nationally important infrastructure”, meaning they are deemed a crucial element of the Scottish Government’s economic growth plans and net-zero targets. Granting hyperscale data centres this status means that future applications can be fast-tracked through the planning process because of their “national significance”. But not to worry, that’s only green data centres. They sound alright don’t they?
Greenwashing
So, what exactly is a green data centre? Nobody knows, because the Scottish Government never actually agreed upon a set definition of the term. The only guidance provided is a little wooly to say the least:
“To be considered a green data centre, planning authorities may wish to consider criteria such as the extent to which the data centre is powered from renewable energy sources; makes use of energy efficient technologies; seeks to minimise water consumption; and supports the re-use of excess heat.”
The word “may” is the first red flag. Not “must” or “will”, just may. So they also may not want to consider the energy efficiency. And as environmental campaigners have rightly pointed out, making use of “energy efficient technologies” also has no defining terms to it: is having an electric vehicle charger in the car park of a data centre enough use of energy efficient technologies to class the data centre as green? What if they use compostable coffee cups in the break room, would that do the trick?
For the term “green data centre” to have any real value, it must have a strict definition that details in no uncertain terms exactly what kind of environmental imapct the centre will have.
This is not an unreasonable ask, there are many ways to measure this including; How is the machinery cooled, is by water or cooling gel? How is it powered, by natural gas or renewables? How much energy will be used on an annual basis? And how does that compare to the current energy use and capacity of the local grid?
The temporary ban on planning applications in Edinburgh is a good first step, but more must be done. The ban must be extended across all Scottish Councils, until the definition of a truly green data centre has been agreed upon – in consultation with experts and campaign groups, such as Action to Protect Rural Scotland, who have invested an incredible amount of time and resource into thoroughly researching and understanding the environmental impact of hyperscale data centres. The definition of a green data centre must have strict criteria relating to water usage, energy efficiency, environmental impact and impact on the local grid.
Red data centres
Even if (and it’s a big if ) data centres find a way to utilise renewables and run off clean energy, it would still leave many questions unanswered. As discussed more in-depth in part one of this article, who actually benefits from these data centres? The answer is usually either a tech billionaire or some share holders. It is rarely the local community.
Over and above the environmental impact, planning applications should detail exactly how the data centre will benefit the community – how many jobs will it provide, and how long-term will these jobs be? Will the company building the data centre contribute to local infrastructure, especially any that needs to be purpose-made to facilitate the construction and maintenance of the facilities? How do they plan on investing in the local community?
What happens to the building and land if (or when) the AI bubble bursts?
Drinking communities dry
In a capitalist system, profit will always come first, even at the cost of a stable water supply.
The ruling class will quite literally sell our drinking water for a quick buck. If that’s not the symptom of a irrevocably broken and corrupt system, nothing is. Wanting a secure supply of drinking water should not be a radical ideal, but here we are.
What Scotland needs in the long term is to shirk off the corrupt capitalist system. We need to build an independent, socialist Scotland that invests in a green, Just Transition for decent jobs and thriving communities – not at the expense of the very water we drink and the air we breathe. Until then, mobilise in your local area and make sure you council doesn’t drink your community dry with a hyperscale data centre.
“In a capitalist system, profit will always come first, even at the cost of a stable water supply.”
Part Three: The Fightback
With 24 data centre proposals awaiting approval across Scotland, and governments and councils in the pockets of Big Tech, communities are organising themselves and fighting back.
In recent weeks, the village of Auchtertool, Fife, has been making headlines. The ILI Group is seeking to build a hyperscale data centre the size of 100 football pitches on the outskirts of the small town. In fact, the data centre would be significantly larger than the village of Auchtertool itself, and one of the largest in the world, guzzling more than 600MW of energy.
Despite its size and potential environmental impact, Fife Council decided that a full Environmental Impact Assessment was not required. This unsurprisingly did not go down well with the locals, with thousands of comments and complaints submitted to the council. The development group behind the data centre has been equally obtuse; instead of the promised public meetings, the ILI Group is instead trying to divide and conquer by hosting smaller individual consultations, meaning only two people can attend at once and only for half an hour, pre-booked appointments.
Unhappy with the complete lack of care shown by Fife Council, concerned locals have banded together to form the Auchtertool Action Group (AAG). The group has taken a range of direct and indirect action in aid of their cause – they have organised a range of public meetings, a leafleting and poster campaign, and a very successful social media campaign.
They have got the attention of the national media and the general public, and they have pursued more formal routes of objection by submitting several FOI requests, and writing to Historic Environment Scotland to seek protection for historic castle ruins on the proposed site. This week, they are planning a large, three-day protest in the town. Through grassroots organising, AAG has built a formidable and effective campaign that cannot be ignored – not even by multi-million-pound developers.
The Canary in the coal mine
Despite the usual promises that the data centre will create jobs and stimulate the local economy, with very little environmental impact, Auchtertool residents are not convinced. It’s not hard to see why – the evidence of the crushing impact of data centres is mounting, and it’s damning.
The United States is much further down the road of data centres. Communities near these centres across the US report little or no water pressure, undrinkable water, power outages, and increased local temperatures. The overreaching and devastating impact on local communities is undeniable. It’s no coincidence that the US builds its data centres almost exclusively in low income, working class areas.
As discussed more in-depth in parts one and two of this article, councils and governments are not stepping in to save towns like Auchtertool; they’re too busy lining their pockets with the short-term windfalls provided by big developers like the ILI Group. So across the globe, local communities like Auchtertool are stepping up, organising, and fighting back.
Global resistance
According to Data Centre Watch, grassroots organisations in the US alone have blocked 75 data centre projects worth an estimated $130bn in the first 3 months of 2026. That’s more than the grand total for all of 2025, which was 48. When the council of Festus, Missouri, went against residents’ wishes and approved a Clayco data centre, the town retaliated by unseating four council members running for re-election.
In the Netherlands, a small Dutch town ousted their entire local government after they approved zoning changes for a Meta data centre. The residents campaigned so relentlessly that the Dutch government ended up blocking the sale of the state-owned land, and Meta cancelled the project altogether.
All across the world, working class people are facing multiple crises at once – the cost of living crisis, the climate disaster, endless warmongering – yet they are still finding the will and the wit to stand up to governments and to resist Big Tech. Communities can see the stark consequences of data centres; not only a death sentence for the towns they dwarf with their size and consumption, but another step towards the point of no return in the global climate disaster.
In hot water
According to campaign group Stop Data Centres Scotland, the country’s peak energy demand is currently 4000MW. If all 24 of Scotland’s data centre proposals were to go through, their combined energy demand would be over 6000MW, in other words, 1.5x Scotland’s current energy demands. The idea that this wouldn’t put immense pressure on our infrastructure and eco-systems is laughable.
As we speak, wildfires rage across Europe, over 300,000 people across Spain and France have been evacuated. In one region near Bordeaux, the wildfire was so extreme and so large it had its own weather system, causing a “fire thunderstorm”, which is about as apocalyptic as it sounds. And much closer to home, a major incident has been declared in Cairngorms with wildfire raging for over two weeks. The damage is so vast and devastating that park bosses described it too as “apocalyptic”. Half of England is officially in drought. The world is heating up at an alarming rate, we can barely sustain our current infrastructure, it is plain madness to start mass producing data centres that will burn fossil fuels and guzzle up our water.
But that’s capitalism. Why consider long term need when you can satisfy short term greed?
Stand up, fight back
Time will tell if the residents of Auchtertool are able to emerge victorious from this fight. But we can take heart from the many international grassroot campaigns, not least of all the Dutch of Zeewolde that took on Meta and won.
The Scottish Socialist Party stands in solidarity with the people of Auchtertool, and working class communities worldwide who are taking the fight to government and Big Tech.
Part Four: Knocking on Holyrood’s Door
On 3 September, community groups are banding together to protest outside Holyrood, demanding MSPs act to stop the rollout of data centres across Scotland. Their demands are simple: a moratorium on hyperscale data centres in Scotland whilst the government examines their immediate and long term impacts on national climate targets, electricity grids and water supply: that an Environmental Impact Assessment (EIA) is carried out for each proposed data centre site: and for the Scottish Government to finally determine just what they mean by a “Green data centre”.
Organised by Action to Protect Rural Scotland (APRS), in conjunction with a whole swathe of community based groups in areas set to be impacted by data centres, the protest will coincide with the first FMQs at Scottish Parliament following its summer recess. Throughout the summer, pressure against data centres has been building at both a community and national level. With 24 data centre proposals awaiting approval across Scotland, and thousands of objections officially lodged against them, it may now have reached boiling point.
Public backlash
The establishment know full well just how strong public opinion against data centres has become. There are now dozens of grass roots campaign groups operating in areas under threat by data centres. Protests are attracting hundreds of people, the groups are organising their attendance at planning meetings, arranging mass email campaigns and petitions aimed at local councillors and MSPs, and they are running strong social media campaigns both on their own and in collaboration with organisations such APRS and Stop AI Data Centres Scotland. This up-swell in community activism has not gone unnoticed by the establishment; a few weeks ago, Police Scotland shared that they anticipate “robust security measures“ will be needed at proposed sites for data centres, specifically the massive 300MW data centre planned for Larbert, Falkirk.
Despite the promise of job creation, once up and running, data centres require very minimal on-site staff, meaning these large buildings are often unattended. Their components are easily destroyed or vandalised, making them easy targets for activists. Targeting buildings and infrastructure has become a popular tactic of activist groups, such as those protesting the genocide in Gaza. Disruption to day to day operations hits the owners and investors where it hurts – in their pockets. By ignoring local communities’ objections, the Scottish government is risking an extra layer of expense to these already costly data centres – state funded security of the very infrastructure that already takes so much from our land and people whilst giving
so little back.
Green data centres?
Thanks to the sustained efforts of community activist, the movement has seen some wins of late – the Scottish Govt has confirmed that two of the proposed data centres, Auchtertool in Fife and West Hermiston in Edinburgh, must publish EIAs. They also stated that planning authorities must notify Scottish Ministers of new data centre planning applications that are over 50MW. Although a step in the right direction, this falls short of a full ban or moratorium, as informing ministers of the plans does not compel them to actually do anything about it.
This is especially ambiguous when we still don’t have any specifics on what will count as a green data centre – will this be decided on case by case basis, allowing big tech to throw money at the problem? Robust rules and regulations are essential to give communities the clarity they need.
“Green data centres” is a term a the Scottish government coined months ago, but we still have no concrete definition of what conditions would have to be met to achieve this standard. Many would argue the term is an oxymoron, which is why the Scottish Government is having such a hard time defining it.
You have to be red to be green
Advancements in technology can bring a whole range of societal benefits – increased access to education and information, advancements in science and medicine, practical ways to make everyday life easier, to name but a few. But, like all assets, they are only valuable when they are harnessed for the good of the people and planet, not for shareholder profits. What Scotland, and the rest of the world needs, is a plan for the tech industry that is part of a wider Just Green Transition; a bold and robust plan that transitions workers away from fossil fuel industries into renewables with training and well paid jobs, investment in renewable energy sources, and technological advancements that run at pace with our energy and infrastructures’ capacities. There’s no point having the most advanced artificial intelligence if we don’t have drinkable water.
Communities have organised themselves and built a grass-roots campaigns against hyperscale data centres that our government can’t ignore, but money talks. The coming weeks should have some interesting developments which we should all watch closely.
The protest will take place on Thursday 3 September, 11:30am-1:00pm, outside The Scottish Parliament in Edinburgh. Find out more about the campaign at aprs.scot