AI is eating the world - can Scotland lead? Guest blog by Richard Lennox, a scaleup adviser who previously held leadership roles at Skyscanner and Current Health

In 2011, Marc Andreessen suggested that “Software Is Eating the World”. And mostly, it has – with software affecting every aspect of our lives. As we begin 2025, we are at the start of a new epoch, with Artificial Intelligence reaching critical mass. The rise of generative AI tools like ChatGPT, Claude, et al. are pushing AI into being a fundamental part of how we all work and innovate.

Contrary to some, I do not think we will see Artificial General Intelligence in 2025. What we will see is increasingly mature and sophisticated AI models capable of tackling significantly more complex tasks, faster. Every significant breakthrough going forward — in medicine, climate solutions, and realistically every other field — will leverage AI to a greater or lesser extent.

Scotland is well-placed to be on the front foot in this new epoch. AI has been a focus in our universities for decades, and with many emerging AI startups, like Malted.AI and Wordsmith AI, there is already momentum.

However, a fundamental opportunity is going under-addressed amidst the hype. AI progress will continue to depend on two critical factors: data and computational power.

AI is energy-intensive; data centres require enormous power supplies to fulfil its computational demands. Globally, data centre innovators are exploring nuclear power to provide the clean energy necessary. The national experience and regulatory landscape mean that this is unlikely to gain traction in the UK quickly enough to be significant. This is where Scotland has a distinct advantage. With the growing renewable energy sector, we can position ourselves as a leader in sustainable AI infrastructure. We already have increasing renewable energy capacity, often with surplus power the National Grid cannot handle, and the necessary capability to create sustainable data centres.

Data is one of our most valuable resources, beyond the AI need for it. Control and ownership will be essential over the next few years. We cannot rely on external nations or organisations to manage this critical resource. By building locally operated data centres, we can secure our data, safeguarding individual and national interests.

The idea is not new. In 2021, the Scottish Government highlighted the potential for green data centres. Yet, while 20 potential strategic data centre sites have been identified, none have progressed to the point of operation and overall progress is glacial. By contrast, since 2021, several new data centres in south west England are becoming operational.

As we start the new year, I suggest a bold yet achievable vision: Scotland should build at least five new AI data centres by the end of 2026 and a further twenty over the next 5 years. These data centres should be powered with renewable energy, directly partnering with power producers for a sustainable energy supply. I am not suggesting that this would be easy. It would require significant public-private commitments to overcome challenges. Yet I see nothing intractable.

AI is already reshaping the world. Investing in AI computational capacity alongside renewable energy infrastructure is an economic necessity. Such infrastructure has the potential to position Scotland as the UK leader in AI development, data management, and green technology, with much broader economic benefits. We have the resources, expertise, and opportunity. However, leadership in this area requires the will to act.