Scotland could be global hotspot for digital data centres

In 2022, Scotland generated 113% of its electricity consumption from renewables, primarily wind and hydro. This surplus of clean energy is a major draw for operators seeking to meet net-zero targets and reduce operational costs. Scotland’s cool climate reduces the need for energy-intensive cooling systems, further lowering the carbon footprint of data centres.

Strategic sites offer proximity to renewable energy sources, robust grid connectivity, and access to subsea fibre cables, making Scotland an ideal location for both hyperscale and edge facilities. The redevelopment of the Cockenzie power station in East Lothian is a prime example.

The UK data centre sector is valued at £4.7 billion annually, with forecasts suggesting an additional £44 billion by 2035. Scotland is well-positioned to capture a significant share of this growth, with major regeneration projects such as the £3.9 billion Ravenscraig redevelopment including AI-ready data centres. A shortlist of 20 prime sites for data centre development has been published, with ongoing work to expand and update this list.

Ambitious new projects, such as ILI Group’s £15 billion "Stoics" network, aim to create one of the world’s largest clusters of green data centres, leveraging circular construction, low-carbon materials, and community heat recovery systems.

On the policy front, the Scottish Government’s Green Datacentres and Digital Connectivity Vision and Action Plan (2021, updated 2023) sets out a roadmap for Scotland to become a leading zero-carbon, cost-competitive data hosting location.

The Scottish Government’s National Planning Framework 4 (NPF4) designates green data centres as national developments, streamlining planning and signalling strong policy support for digital infrastructure growth. This also means planning authorities must “identify and support” such proposals, removing the need to justify their necessity during the consent process.

Leading hyperscalers such as AWS, Google, and Microsoft are investing in climate-neutral facilities, and Scotland’s policy environment supports this trend.

Collaboration between developers, energy providers and local authorities is fostering innovation and accelerating project delivery. Data centre development brings significant investment, creates high-value jobs, and supports local supply chains.

However, there are challenges. Grid capacity constraints and transmission bottlenecks can delay large-scale projects. Investment in grid infrastructure and early engagement with network operators are essential.

Planning uncertainty and the need for streamlined consenting regimes remain hurdles. The use of Masterplan Consent Areas and clear local development plans can help.

The scale of upcoming projects also requires a robust supply chain and skilled workforce. Leveraging Scotland’s oil and gas expertise and investing in training is one option.

Developers must address water usage, heat recovery, and biodiversity in their proposals. Environmental impact assessments and community benefit schemes are integral to project approvals.

Ultimately, Scotland offers a compelling mix of property advantages, corporate opportunities, and policy support for data centre development. While challenges around grid capacity and planning persist, proactive strategies including streamlined consenting, infrastructure investment, and supply chain readiness can unlock Scotland’s potential. Our commitment to sustainability, digital innovation, and economic growth positions us at the forefront of the next wave of digital infrastructure.

Data centres were covered as part of Harper Macleod’s Natural Futures Digital Digest, a series of discussions connecting natural capital, infrastructure and communities. Hear the full conversation at this link.

Alexander Johnson is an associate, Harper Macleod