Power-hungry AI data centres could more than offset their energy demands with the technology being used to drive down consumption across other industries, a science minister has said.
Labour frontbencher Lord Vallance of Balham told Parliament the UK stood “a very good chance” of securing a large number of computer processing sites, as critics cast doubt on Britain’s attraction given its high energy costs compared with other countries.
The Government has previously set out plans to turn areas of industrial wasteland into “hotbeds” for AI development.
Prime Minister Sir Keir Starmer wants to drastically expand use of the technology to help revolutionise struggling public services and turn around Britain’s economy.
Measures include the development of “growth zones” around the country to build infrastructure such as data centres and improve access to the power grid.
However, concern has been expressed at the amount of energy consumed by the new technology as the Government pursues the emissions goal of net-zero by 2050.
It follows the ending of the mainstream political consensus on tackling climate change, amid worries over the cost of the UK’s green transition on household bills.
Tory peer Lord Mackinlay of Richborough, director of the Global Warming Policy Foundation think tank, said: “For that diminishing number of people who still believe that diminishing Britain’s 0.8% of global CO2 still further is actually an undertaking worth having, I bring very good news.
“And that is the amount of CO2 to be released from UK data centres will be very close to zero.
“Because with energy price in the UK some three times higher than the US, double the price of much of mainland Europe – notably Switzerland where this is a developing industry – I very much doubt we will have any or very few energy hungry AI centres.”
But Lord Vallance said energy consumption of AI and data centres was not forecast to rise to more than 10% of the UK total.

He added: “It is the case that many places across the UK have expressed an interest in becoming an AI growth zone, it’s also the case that many data centre providers are interested in coming to the UK, so I think there is a very good chance of getting a large number of data centres here in the UK.”
The minister went on: “I think it’s the case that AI is going to be very, very important in reducing energy consumption across a number of industries.
“Estimates suggest that even factoring in the increased amount of energy consumed by data centres and AI, the reductions in use as a result of applying AI to a number of industries and elsewhere could outweigh that increase.
“So I think this is a complex picture where AI itself can be part of the solution.”
The UK’s AI sector is valued at 92 billion dollars (£71 billion) and projected to pass a trillion dollars by 2035, according to the Department for Science, Innovation and Technology.