Scottish data centres are 'whisky bonds' of AI, says minister

Scottish Government Innovation Minister Alyn Smith said planning rules needed to be strengthened to address the energy demands of AI data centres. <i>(Image: Jane Barlow)</i>
Scottish Government Innovation Minister Alyn Smith said planning rules needed to be strengthened to address the energy demands of AI data centres. (Image: Jane Barlow)
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Scotland's self-described AI minister has said the planning system needs strengthened to deal with huge data centres, as he compared the controversial developments to the "whisky bonds" of the technology industry.

Alyn Smith said new planning guidance would be published "in a matter of weeks" amid growing concerns about the energy demands of artificial intelligence (AI).

The SNP minister also admitted data centres would create relatively few jobs, but insisted they could deliver major economic benefits.

Speaking on BBC Radio Scotland's Breakfast programme on Tuesday, he said: "People are up for these developments, but we need to see, obviously, the planning system augmented to take due note of the significant implications of, particularly on energy use, some of these projects."


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He said Public Finance Minister Hannah Mary Goodlad was working to ensure new planning guidelines were introduced within weeks.

The comments come amid calls from the Scottish Greens for a moratorium on hyperscale data centres until stronger environmental safeguards are in place.

The Herald previously revealed that the Scottish Government had faced questions over apparently conflicting commitments to introduce national planning guidance for the developments.

The government has since confirmed the guidance will be published before the end of the year.

Mr Smith, who described himself as "Scotland's AI minister", insisted the developments should be judged individually rather than automatically approved.

He said: "Data centres are the whisky bonds of the AI sector, and they're an integral part of what the sector needs to be."

He argued they could help Scotland keep control of sensitive information rather than relying on infrastructure overseas.

But he acknowledged their limited employment benefits.

"Now, they're not great for employment. There's not a lot of jobs created by AI data centres, but there is community benefit. There is business rates. There's a lot of economic development and tech sovereignty," he said.

Scottish Green MSP Patrick Harvie has previously called the government's environmental safeguards the "bare minimum" and warned against allowing a "big tech free-for-all".

He has also demanded assurances that planning guidance will consider the combined impact of major developments on Scotland's electricity supplies and infrastructure.

Mr Smith said he respected the Greens' concerns but criticised some of the wider debate.

"Some of the wider discourse on this has been wild," he said.

He was also challenged over fears that AI could replace workers across Scotland.

Asked about the potential impact on jobs, he initially said: "I don't think it's happening now."

But when presenter Martin Geissler described people losing their jobs after employers introduced AI software, the minister acknowledged it was happening.

"No, I don't deny it's happening, but I don't think it's happening on anything like the scale that some people are saying it is," he said.

Mr Smith said the Scottish Government was establishing a workplace jobs observatory, led by the STUC, to monitor the impact of the technology.

He also called for stronger regulation based on European Union standards.

The interview followed comments from Mr Smith over the weekend that AI could boost Scotland's economy by up to £23 billion a year within a decade.

He compared some AI sceptics to people who might have dismissed the invention of the lightbulb as a "dangerous anti-candle device".

Mr Harvie criticised the comparison, warning that AI was already being used to spread disinformation and generate abusive images.

He said the technology had positive uses but required proper regulation.

Mr Smith rejected suggestions that he was branding everyone concerned about AI a Luddite.

He added: "Where there are opportunities for AI in Scotland, I want us to be all over it. And where there's things that people need to be reassured about, I also want to be all over it."

He insisted: "I'm not a subsidiary of any of the tech companies or any of that, we need to have proper regulation on this to make sure that people feel confident going forward."

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