Scotland moves to slow its datacentre boom

A proposed 600MW datacentre in Auchtertool, Fife, is facing 1,600 objections as Scotland moves to tighten oversight of hyperscale facilities. The project is planned at 35 meters high and would cover more than 100 football pitches—larger than the village itself. Its backers describe it as the world’s second-largest datacentre.

The opposition extends beyond Fife. Residents and campaigners are also challenging major developments planned for Airdrie and Larbert, citing pollution, noise, electricity demand and the effect of industrial-scale buildings on rural communities. Police Scotland has already warned one developer that public anger could lead to incursions and create a security risk, an issue covered in our report on proposed datacentre protests in Scotland.

“The public pressure is huge. I’ve never seen this level of objection to a local plan, and I have been in politics for 25 years.”

The dispute puts pressure on Britain’s strategy of encouraging datacentre investment outside England. Scotland has abundant energy and water resources, while England is dealing with drought and grid constraints, making the country attractive to hyperscale operators and AI infrastructure.

“They are coming up here because we are energy-rich, and we are water-rich, and England is in drought and the grid is struggling.”

New rules target projects above 50MW

Scotland’s minister for public finance has issued directions requiring planning authorities to notify the government when they receive an application for a datacentre larger than 50MW. That threshold is less than one-twelfth of the proposed Auchtertool facility.

Some projects, including Auchtertool, must also submit an environmental impact assessment. Developers had previously argued that these facilities were exempt. The new requirements give the government earlier visibility into projects that can consume substantial amounts of electricity and water, but they do not yet amount to a ban.

Campaigners are seeking a full moratorium on datacentre development while authorities assess projects already in the pipeline. The national council of the Scottish National Party passed a motion this summer calling for all new datacentre projects without planning permission to be frozen. A major demonstration is planned in Edinburgh in early September, three days after the Scottish Parliament returns.

“The Scottish government is inching towards a moratorium. MSPs return to parliament next week, after a summer in their constituencies where they have been hearing the concerns of local people about proposed hyperscale datacentres. They will be expecting action.”

The policy change is narrow, but it points to a planning gap: the source reporting says datacentres can currently be proposed across Britain without a national strategy or, in some cases, early government knowledge. The planning system was not designed for buildings whose scale and resource requirements resemble major industrial infrastructure.

Developers defend economic case

The companies behind the projects are pushing back. Data Vita, which is developing the UK’s AI growth zone in Lanarkshire, recently received an investment package that includes a £202 million guarantee from the National Wealth Fund. The Guardian has reported that the company’s plans for powering the site do not stand up, although the supplied reporting does not provide the underlying figures or the company’s response.

Mark Wilson, chief executive of ILI Group, which is developing the Auchtertool site, defended the project in an interview with the BBC’s Scotcast. He argued that criticism was being driven partly by inaccurate information and said the development could create long-term economic benefits through construction and other jobs. The interview is available through BBC Sounds.

“I understand how people can think in a rural area. There’s a lot of misinformation out there, it’s mainly coming from overseas, from America.”

Wilson also acknowledged that most datacentre developments currently in Scotland’s planning pipeline are unlikely to be built, while maintaining that the country could become a major international hub.

“Scotland can be No1. We can become a global hub for datacentres in Scotland.”

The dispute is over whether Scotland should attract AI infrastructure while the projects compete for land, water and grid capacity before their commercial case or power plans are fully resolved. The government’s 50MW notification rule and environmental reviews are the first formal constraints. Parliament returns and local opposition will reach Edinburgh.