What does an AI bubble mean for Scotland?
Independent analysis of the considerable risks is required now.
The north of Scotland is an area that will pay a high price if the bubble bursts.
We have summarised our thoughts about what an AI bubble may mean for Scotland and presented some relevant facts from what has been happening elsewhere. Read the full document here.
Some predict that AI may lead to a doubling of demand for electricity. Some politicians and companies appear to believe that a future is assured by being closely aligned with the supply of electricity and data centres - at any price.
The AI bubble is a period of inflated expectations and massive investment in artificial intelligence technology that may not yield proportional economic value. If the bubble bursts (leading financial analysts agree that it is a matter of “when” rather than “if”), major companies could fail, job losses would spike, and large infrastructure built to support AI — notably energy generation, transmission and data centres — could become financially stranded assets.
Scotland is rushing into large-scale grid, transmission, and data centre projects without robust independent scrutiny or obligatory environmental assessment. The Scottish Government and energy regulators are overly accommodating to corporate and political pressures, enabling a system of almost automatic consent.
Environmental groups and analysts warn that proposed AI data centres could double Scotland’s electricity demand, consume vast resources, and damage rural landscapes. The UK Government’s AI Growth Zones plan, which would subsidise electricity for data centres, could further shift costs onto ordinary consumers. In contrast, Canada’s provinces are introducing regulations to protect consumers from data centre–driven price spikes.
AI data centres might relocate internationally to cheaper energy markets; Scotland risks being left with underused, expensive infrastructure and environmental devastation.
Policymakers are urged to urgently and more carefully analyse risks
Want to understand more about why the Pylons are not needed? Read this item and/or watch this video.
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There is doubtless a long battle ahead and the likelihood of the need for funded legal action. Both of these organisations work tirelessly.
Scotland Against Spin Treasurer's account Sort code: 83-17-23 Account no: 00247833
Communities B4 Power Companies Sort Code: 80.22.60 Account no: 12250367
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This is Highland Council's map that invites applications for Wind Turbines in any of the areas coloured blue. That's right, peat is given more protection than people! In 2021 when the plan was revised, protective bubbles such as those enjoyed by the residents of Halkirk, Thurso , Castletown and Wick were removed from the likes of Dunbeath and Watten. Meanwhile, if you'd like to read about our thoughts on how rural residents are treated, try this article.
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