SCOTLAND NOT FOR SALE

Energy

 

Data Centres

 

Data Centres in Scotland

What are we building, who benefits and what does it cost

Data centres underpin much of modern life — from banking and communications to cloud computing and artificial intelligence.

Scotland is seeking substantial new investment in data centres, including very large hyperscale developments.

But these facilities can also require significant amounts of land, electricity and infrastructure, while some designs require substantial water for cooling.

As development increases, there are reasonable questions to ask about resources, ownership, public support and the lasting benefits for the communities hosting them.

26 0820 large data centre
Large data-centre developments can extend well beyond the buildings themselves, requiring electricity, cooling, communications and other infrastructure.

What is a data centre?

Data centres are facilities containing computer servers and associated equipment used to store, process and transmit digital information.

They range from relatively modest buildings to enormous hyperscale data centres operated for cloud computing and artificial intelligence.

At the largest scale, the infrastructure associated with the development can be substantial

Energy

Potentially substantial electricity demand.

Water

Some cooling systems require significant water.

Land

Large sites plus associated infrastructure.

Communities

Planning, construction and long-term local impacts.

Explore the issues

Why is Scotland attracting data centres

Scotland offers several characteristics attractive to data-centre developers, including renewable electricity generation, potential development sites and digital connectivity.

The Scottish Government has identified green data centres as an economic opportunity and is actively seeking further investment.

That makes understanding the costs as well as the benefits increasingly important.

WHY SCOTLAND

Why is Scotland attracting data centres?

Scotland offers several characteristics attractive to data-centre developers, including renewable electricity generation, potential development sites and digital connectivity.

The Scottish Government has identified green data centres as an economic opportunity and is actively seeking further investment.

That makes understanding the costs as well as the benefits increasingly important.

The Central Question

Scotland may be an attractive place to build data centres — but how do we ensure Scotland and the communities hosting them receive an appropriate long-term benefit?

Energy

1. How much electricity will they use?

Data centres can be extremely large electricity consumers.

Electricity is required not only for servers, but also for cooling, networking, storage and supporting infrastructure.

Large developments can therefore create substantial additional demand for electricity and grid capacity.

The Energy Question

How much electricity will this development require — and what additional grid infrastructure will be needed to supply it?

WATER

2. How much water will they need?

Water consumption varies considerably according to the cooling technology used.

Some facilities may require relatively little water; others can require considerably more.

This means the important evidence needs to be examined development by development and location by location.

Communities should be able to establish:

  • projected water consumption;
  • where the water will come from;
  • the cooling technology proposed;
  • arrangements during water scarcity; and
  • whether actual consumption will subsequently be reported.

 

The Evidence Question

How much water was predicted to be used — and how much is actually being consumed once the data centre becomes operational?

26 )820 data centre 4
The buildings are only one part of a data centre. Electricity supply, cooling and supporting infrastructure also need to be considered.

LAND

3. How much land will they occupy?

Hyperscale developments can occupy substantial sites.

But the footprint should not be measured simply by the size of the main buildings.

Associated development may include substations, high-voltage connections, cooling equipment, backup power, roads, fibre connections, water infrastructure and security installations.

Key Question

What is the total infrastructure footprint of the development — not simply the acreage occupied by the data-centre buildings?


 

Communities

4. What does it mean for the local community?

Every development is different.

Potential issues can include:

  • landscape and visual effects;
  • construction traffic;
  • operational noise;
  • electricity infrastructure;
  • water demand;
  • environmental effects;
  • proximity to homes; and
  • cumulative development.

None of these automatically makes a data centre unacceptable.

But communities should have sufficient information to understand the consequences before decisions are made.


 

   

SAFETY

5. What are the safety and resilience arrangements?

Data centres contain substantial electrical infrastructure and, depending upon their design, may include batteries, generators, fuel supplies and cooling systems.

Planning and regulatory information should therefore provide appropriate assurance about:

  • fire prevention;
  • emergency response;
  • battery installations;
  • backup generation;
  • site security;
  • resilience; and
  • the ability of emergency services to respond.

 

Ownership

Follow the Land and the Money

6. Who actually owns the development?

For major developments we believe some very simple questions should have clear answers:

Who owns the land?

Who submitted the planning application?

Who is financing the development?

Who will operate the data centre?

Who ultimately owns the company behind it?

Could the development subsequently be sold?

Complex corporate structures do not themselves indicate wrongdoing.

But they can make it much harder for communities to understand who ultimately owns important infrastructure and land.

The Ownership Question

Who owns the land, who owns the development — and where does the economic value ultimately flow?

PUBLIC MONEY

7. Is public money or public infrastructure involved?

Large private developments can sometimes benefit from public-sector support.

For each significant project it is reasonable to establish whether support includes:

  • grants;
  • public investment;
  • government or enterprise-agency assistance;
  • publicly funded infrastructure;
  • favourable land arrangements;
  • tax incentives; or
  • other financial support.

 

Where public resources help enable private investment, the resulting public benefit should be capable of being demonstrated.

26 0820 o5 data centre

WHAT DOES SCOTLAND GET?

What do we get in return?

Data centres can bring investment, construction activity and important digital infrastructure.

But headline investment figures are not necessarily the same as lasting local economic benefit.

For major developments we should eventually be able to compare what was promised with what was delivered

Construction Jobs

How many – and for how long?

Permanent Jobs

How many remain after construction?

Local supply chain

How much expenditure stays in Scotland 

Community benefit

What does the host community receive?

Resources

How much electricity and water are actually consumed?

Public benefit

What lasting economic value remains in Scotland?

THE OVERALL TEST

For every significant data-centre development, we should eventually be able to answer:

 

Who owns it?

Who finances it?

Who approved it?

How much land does it occupy?

How much electricity does it require?

How much water does it use?

What additional infrastructure was required?

Was public support provided?

What was promised to the community?

And ultimately:

What was actually delivered?


 

Conclusion

A question of balance

Data centres are an important part of the modern digital economy, and Scotland may have genuine advantages in hosting them.

The issue is not simply whether Scotland should have data centres.

The issue is whether their development is:

transparent;

sustainable;

properly planned;

accountable; and

demonstrably beneficial to Scotland and the communities hosting them.

As development progresses, we will follow the published evidence.

 

Sources and Further Information

  1. Scottish Government — Scotland’s Artificial Intelligence Strategy 2026–2031
    This is our most important source. It covers data-centre investment, electricity/grid requirements, water management, local benefits, infrastructure and environmental risks.
    Scotland’s Artificial Intelligence Strategy 2026–2031
  2. Scottish Government — Green Industrial Strategy
    This establishes the policy commitment to attract a significant pipeline of green data-centre investment, including hyperscale development.
    Scottish Government Green Industrial Strategy
  3. Scottish Government — Water use for data centres: EIR release
    Particularly valuable because it records that the Scottish Government held no information specific to data-centre water use in Scotland at the time of the request.
    Water use for data centres — EIR release
  4. Scottish Government — Water EIR supporting annex
    This records Scottish Water’s position on protecting drinking-water resources, treated effluent, closed-loop systems and the importance of location.
    Water use for data centres — supporting information
  5. Scottish Government — AI Strategy: Data Centres & Infrastructure Action Plan
    This is worth separating from the main strategy link because it takes visitors directly to the particularly relevant material on grid connections, water infrastructure, hyperscale investment and community benefits.
    AI Strategy — Data Centres & Infrastructure Action Plan

 

Sources are provided to allow readers to examine the underlying published evidence. Inclusion of a source does not imply endorsement of all views or policies contained within it.