Clear the way for data centres

The scale of opportunity is striking. Scotland offers a unique combination of renewable energy generation, cooler climatic conditions and land availability that is becoming scarce elsewhere in Europe and across the UK. The Scottish Government’s National Planning Framework 4 (NPF4) explicitly supports “green data centres”, underlining a national ambition to make Scotland a leader in sustainable digital infrastructure. The question now is not whether Scotland should accommodate data centres, but how it can do so responsibly.

The planning system is at the heart of a complex balancing act. Planning authorities are being asked to determine applications involving significant land use, major grid connections and intensive energy requirements. Traditional considerations such as visual impact, traffic and noise remain relevant, but the debate has shifted towards infrastructure capacity, climate obligations and cumulative environmental effects.

Some environmental groups claim current data centre proposals could require electricity equivalent to Scotland’s existing winter peak demand. While some estimates may be speculative, they highlight the magnitude of the challenge facing planners, operators and policymakers.

Recent controversies surrounding proposed AI-focused developments in Edinburgh and Ayrshire demonstrate how quickly local opposition can coalesce around concerns about energy use, water consumption and environmental impact. Communities question whether local economic benefits promised justify the infrastructure demands. Edinburgh City Council is even considering a moratorium on new data centres until the Scottish Government provides a clear definition of “green data centre”.

This perhaps reflects a lack of wider understanding about the role of data centres in delivering not only economic but also environmental and social benefits. Once seen as niche industrial developments, data centres are now viewed as nationally important and essential infrastructure, directly tied to Scotland's economic resilience, AI capability and technological competitiveness.

One key opportunity is the co-location of data centres with renewable energy projects such as wind, solar and battery storage.

Renewable energy developers and data centre operators are increasingly forming strategic partnerships as both sectors face growing pressure around electricity demand, grid constraints and decarbonisation. Their relationship is evolving from simple supplier-customer arrangements into integrated infrastructure collaboration.

These arrangements can involve private wire connections, shared grid infrastructure or behind-the-meter generation. For renewable developers, this can offer long-term revenue certainty and improve project bankability. For data centre operators, it can enhance energy security, support net zero commitments and reduce exposure to constrained electricity networks.

Fundamentally, there are clear planning and policy advantages. Renewable-backed data centres may align more closely with government objectives around digital infrastructure, energy security and decarbonisation. Integrated projects can strengthen economic and sustainability arguments for any planning application, particularly where waste heat from data centres can support district heating or industrial heat reuse schemes.

Scotland has an opportunity to establish itself as a leader in sustainable data infrastructure, but only if planning policy evolves strategically. The newly-elected Scottish Government must urgently deliver clearer national guidance, coordinated infrastructure planning and robust environmental standards to command public confidence. Planning decisions made now will determine whether Scotland is simply a host for energy-hungry infrastructure or a genuine pioneer of low-carbon digital growth that serves the wider public interest of a sustainable and economically competitive country.

Sarah Baillie is a Partner, Planning & Infrastructure Consenting, Addleshaw Goddard LLP​