The Scottish Government has introduced new rules requiring planning authorities to notify Ministers of proposed data centres with a power capacity exceeding 50 MW within seven days of an application being validated.

The new direction doesn’t just apply to new planning applications, but also those already making their way through the planning system. Local authorities will be required to provide Ministers with the application, accompanying plans and supporting documents, alongside any Environmental Impact Assessment (EIA) or screening opinion.

It’s a notable change for a sector that is rapidly expanding in Scotland, giving the Scottish Government much greater visibility over where large data centres are being proposed and, crucially, the impact that pipeline could have on wider infrastructure.

The new direction doesn’t prevent local authorities from approving large data centres or introduce a new planning test for the sector. Instead, it creates a mechanism for Ministers to keep a closer eye on projects exceeding the 50 MW threshold as they enter the system.

That increased scrutiny comes at an interesting time. Scotland has spent years positioning itself as a potential destination for low-carbon digital infrastructure under its green data centre strategy, but the rapid growth of AI infrastructure has also prompted much greater concern over energy demand, environmental impacts and the benefits being returned to local communities.

The SNP’s National Council has even backed calls for a temporary moratorium on AI data centre developments, although that position doesn’t appear to be reflected by the Scottish Government’s policy – though this move is likely being made to quell some of the more vocal opponents to data centres. 

The data centres at the heart of the policy change

Scotland had promised to become a hub for green data centres, but that policy is now facing strong opposition from communities and action groups across the country. 

The changes being implemented by the Scottish Government come after Edinburgh Council rejected a proposed green data centre that was expected to be built on the site of the former RBS HQ. 

Following the rejection, the developers behind the site have since launched an appeal – which has now been recalled by Scotland’s Public Finance Minister. That means the decision on whether to allow that data centre to be built will now be in the hands of Hannah Mary Goodlad. She has previously been supportive of the economic opportunity that data centres bring to Scotland, while also recognising the importance of community engagement and the potential environmental impact of the sector. 

That means the appeal could go either way, although the Scottish Government has already determined that the plans will require a full EIA before its appeal can progress.

Ministers have also issued directions requiring an EIA for other proposed developments, including ILI Group’s proposed Fife data centre. 

The £5 billion Cato development near Auchtertool could eventually provide 600MW of data centre capacity, but the project has already attracted more than 1,200 objections, amid concerns over everything from its scale to the amount of energy it could require.

Goodlad commented, “Data centres is a rapidly emerging sector, and planning has an important role to play in considering applications, harnessing economic opportunities, and finding solutions which align with our climate goals.

“We must balance the economic and employment interests in developing data centres with national energy, climate and community wealth building ambitions, which are vital to our future prosperity, as well as the potential impact on local communities.

“It is essential to secure public benefits from this type of development, and I am clear that voices of communities that will be affected will be central to any considerations on data centres.”

A growing data centre pipeline

The timing of the new rules is particularly interesting given Scotland’s increasing push to attract AI infrastructure investment.

On the same day the planning direction was announced, DataVita confirmed that it had secured a roughly £300 million debt facility to expand its existing DV1 data centre and construct a second facility, DV3.

Both will form part of the North Lanarkshire AI Growth Zone, which was announced earlier this year as Scotland’s first AI Growth Zone and is centred around a major expansion of DataVita’s existing campus.

The latest financing is supported by a £202 million guarantee from the National Wealth Fund, alongside lending from ING, ABN AMRO, Santander, the Scottish National Investment Bank and Siemens Financial Services.

Both facilities have already had their full capacity contracted to AI cloud company CoreWeave under a 15-year agreement, with the projects expected to create around 600 jobs during construction and roughly 100 permanent roles once operational.

That investment highlights the balancing act facing the Scottish Government. Data centres offer the potential for significant investment and new jobs, particularly as demand for AI compute continues to grow, but large facilities also bring questions around energy requirements, infrastructure and their impact on local communities.

For developers, the new direction is therefore less of a new planning hurdle and more of an additional layer of Government oversight. However, with Ministers simultaneously recalling one data centre appeal and demanding EIAs for other developments, it’s clear that Scotland’s largest data centre projects are going to face much closer scrutiny as the sector expands.