Politicians must show leadership and face down data centre naysayers
We are in the midst of the most rapid technological advances in human history - Scotland resists its benefits at its peril, writes Sandy Begbie
Human history is littered with examples of innovation changing lives and societies, in the face of doubt and opposition.
In the 15 th century, many thought the printing press would cheapen knowledge and undercut the value of hand-written manuscripts, while 400 years later early railways were opposed on the grounds that they could destroy crops and scare animals. Both went on to expand the horizons of ordinary people across the globe, creating huge economic and social opportunities along the way.
Today, we live in the midst of one of the most rapid technological advances in human history, with the power of data and AI revolutionising the way we live our lives, how we work and how services are delivered.
Against a backdrop of constrained public finances and increasing demand, the need for technology to make our services more efficient will only increase. The fact of the matter is that if we want our education system to thrive, our health services to keep up with demand and our economy to grow, we must embrace the potential of technology, we have no choice.
Of course, the ethical, environmental and societal considerations of this transition must be managed sensitively. However, the current debate has lacked the voice of business and has been relatively fact free. Essentially the discussion has been hijacked by politics, minority vested interests and false information.
Whether we emerge from this transition a stronger, more prosperous and fairer society depends to a significant extent on decisions being taken right now in the corridors of power.
The politics of data centres - where they should be sited or even whether we should consider them at all – lies at the heart of how we manage this transition, and recent months have seen an increasingly public battle of ideas over what approach Scotland should take to this critical national infrastructure. And key national infrastructure is exactly what they are, in a similar manner to power, transport and water. In an increasingly volatile geo-political world, resilience and control of our own data is becoming evermore important.
In a number of cases, policymakers have come under increasing pressure to simply block any such development, with the City of Edinburgh Council’s planning committee calling for a nationwide moratorium on new data centres. First minister John Swinney indicated this week he was considering introducing national planning guidelines following pressure from politicians, petitioners and local authorities.
None of this is to offer a view on what specifically is or isn’t the right place for these facilities. But rather, these decisions need to be underpinned by a proper understanding of how our society is already dependent on digital infrastructure and how our future economic success will be determined by Scotland’s willingness and ability to embrace change and investment.
That is to say, data centres in themselves are not new. In fact, there are 23 operational data centres across Scotland, with five major centres already within Edinburgh’s city boundary.
These facilities have quietly powered our daily lives for years without incident or disruption.
Financial and professional services as a sector is key to the growth our economy needs, both in and of itself, but also as an enabler for every other sector in our economy. It is worth £17.7 billion annual to our economy or, in more relatable terms, around £7000 for every household in the country. In a globally competitive environment, the future success of financial services and the wider economy in Scotland is underpinned – to an ever-increasing extent – on the digital infrastructure that sits behind our innovative and world-leading firms.
Our premier institutions who pioneer in algorithmic trading, sustainable products, and fintech would be much better served having modern data centre facilities located here. It is part of a successful financial services ecosystem.
Data centres also provide strong economic value in themselves with up to 50 long term well-paying jobs being created, while thousands of construction jobs and apprenticeships are created in their construction. At a time when Scotland needs more employment this simply cannot be overlooked.
Our mainstream political parties have been very clear in articulating their ambition to drive economic growth, recognising its central role in delivering prosperity and strong public services for individuals, families and communities across Scotland. As we look across the globe, it is clear that data centres are the cornerstone of other high performing economies and investment into them will be core to economic growth. This is one area where policy – at a national and local level – can either support or undermine that ambition and where our politicians have an opportunity to show real leadership.
Politicians from all corners of the political spectrum say that we must look to the inward investment models championed nations such as Ireland or Norway. They should ask themselves, would either of those nations hesitate to welcome investment into data centres which will drive economic growth? The answer is resounding no.
These are decisions of national importance for economic growth, resilience and security, and we should treat them so by designating data centres as critical national infrastructure. As such, we should remove decisions around planning of these projects away from local authorities and the petty point scoring politics, and bring these decisions of national importance into central government.
As a country, some would have us stick our heads in the sand and carry on as we always have, using yesterday’s solutions to solve tomorrow’s problems.
Instead, our political leaders should learn the lessons of history and show leadership to facedown the naysayers.
Sandy Begbie CBE is the Chief Executive of Scottish Financial Enterprise
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