Octopus Energy's chief executive, Greg Jackson, has proposed building data centres in Scotland to make use of the country's abundant wind power, which currently exceeds local demand. He argues that the UK's aging electricity grid is forcing consumers to pay more for energy that cannot be effectively used, as the infrastructure struggles to transport surplus power from Scotland to England. Speaking at the Climate 100 event in New York, Jackson noted that Scotland now generates three times more wind energy than it consumes. Instead of investing heavily in expanding the grid to move this power south, he suggested shifting demand north by encouraging data centres to locate in Scotland, where electricity is cheaper.
Jackson's remarks were made at an event that also featured former UK Foreign Secretary David Miliband, who warned that climate change is increasingly affecting regions already dealing with conflict and instability. The Climate 100 initiative brings together global leaders in business, science, and activism to address the climate crisis. Focusing on the UK's domestic energy strategy, Jackson criticized the current approach of spending up to £150 billion on new grid infrastructure to transport Scottish wind power south. He argued that this would only increase costs for consumers, when a more cost-effective solution would be to move demand to Scotland instead.
He also criticized the practice of curtailment, where wind farms are paid to shut down when supply exceeds local demand. This process, which involves turning off turbines and using more expensive gas plants to compensate, is expected to cost the UK around £3 billion in the next year and could rise to £8-9 billion by 2029. Jackson also pointed out that the current market structure, which sets the same price for electricity regardless of its source, protects fossil fuel generators from having to compete on cost. He argued that in a more efficient market, companies like his could buy surplus wind power at a lower cost and pass those savings on to consumers.
Jackson emphasized that the shift to renewable energy, while presenting some initial challenges, would lead to a more robust and job-rich economy. High energy costs, driven by expensive gas rather than renewables with no input costs, have led to job cuts in many UK businesses, according to an Octopus Energy survey. Electrification through renewables, he argued, is not only essential for climate goals but also more resilient than fossil fuel systems, as seen in countries like Norway and Denmark, where electric vehicles now dominate new car sales. He warned that industries resistant to change would face the same fate as Blockbuster did with the rise of Netflix, as progress in energy transition accelerates.
Octopus CEO Advocates for Data Centres in Scotland to Utilize Surplus Wind Power
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