Scottish Parliament Votes on Hyperscale Datacentres: The Nuances of Planning and Policy
This week, the Scottish Parliament made headlines when it rejected a Green motion calling for a moratorium on new hyperscale datacentres. Instead, the Parliament opted for a more nuanced approach, amending the proposal to commit to publishing national planning guidance by Christmas while also incorporating a Labour clause that mandates a freeze on planning and consenting decisions until that guidance is finalized.
The Vote Breakdown
On September 16, the government amendment, introduced by Public Finance Minister Hannah Mary Goodlad, passed decisively with 72 votes in favor, 32 against, and 16 abstentions. The government’s stance was clear: they did not believe a moratorium was necessary or appropriate. Minister Goodlad argued that imposing such restrictions would send a negative message to potential investors looking to establish a presence in Scotland.
A Shift in Focus
The landscape of datacentre development in Scotland is rapidly changing. Goodlad emphasized the need for a “swift creation of national planning and spatial guidance” by the end of the year, signaling an ambition to complete the work faster than Labour’s proposed 12-month timeline. She reassured Parliament that they would return with guidance in three months, aligning it with the Christmas deadline.
New Environmental Regulations
Alongside this political maneuvering, Goodlad announced a new planning direction requiring an environmental impact assessment for datacentre applications exceeding 50MW. This requirement applies to both new applications and those already in the pipeline, effective immediately after the vote. This direction followed an August initiative mandating councils to notify ministers about applications that surpass the 50MW threshold within a week.
Rapid Pipeline Growth
The scale of proposed datacentre projects in Scotland is noteworthy. According to an analysis by Computer Weekly of Barbour ABI data, the committed pipeline has surged to 14 schemes totaling an impressive 2.4GW, up from just four projects with a capacity of 0.9GW as of March. This makes Scotland the fastest-growing datacentre market in the UK, which has a total committed pipeline of 173 schemes and over 14.6GW.
However, campaigners like the Scottish Greens and Action to Protect Rural Scotland argue the numbers are even higher, citing 24 proposals with a potential capacity of 6GW—more than one and a half times Scotland’s peak power demand. This discrepancy highlights the speculative nature of many proposals still under consideration.
A Call for National Design
In the parliamentary debate, Labour’s Paul Sweeney underlined the importance of a more strategic approach to datacentre development. He posited that Scotland now has 15 operational datacentres with 23 additional proposals and called for growth driven by “national design” instead of reactive, private speculation.
Monica Lennon, another Labour speaker, reinforced the necessity for robust guidance, asserting that communities should not face uncertainty while decisions could slip through the cracks before the new guidelines are implemented.
The Reality of Decision-making
Despite the amendments made, the motion did not impose a legally binding moratorium, meaning councils could, in theory, still consent to new schemes before the guidance arrives. Green MSP Mark Ruskell flagged that several hyperscale applications could potentially be approved this year, including one at the Larbert site in Falkirk, where a pre-determination hearing coincided with the parliamentary vote.
Rising Concerns Over Datacentre Projects
The pressure for a halt to new datacentre projects had been intensifying since the SNP’s national council endorsed a moratorium earlier in the summer. Minister Goodlad had since intervened in specific cases, demanding environmental assessments in locales like Wester Hermiston and Auchtertool.
The National Planning Framework 4 designates “green datacentres” as a priority development zone but lacks a clear definition, adding complexity to the ongoing debate. This has raised concerns among environmentalists and community advocates who argue for a more thoughtful and cautious approach to such substantial developments.
Implications for Developers and Investors
For developers and businesses reliant on datacentres, the outcome of this parliamentary vote presents a mixed message. While the door remains open to the burgeoning datacentre market in Scotland, the absence of a moratorium offers uncertainty. The new commitment for guidance by Christmas is a sign of progress, yet it leaves developers awaiting clarity on regulatory expectations and the future landscape of planning.
In this unfolding scenario, the Scottish Parliament’s decisions bring into sharp focus the balance between promoting economic growth and ensuring environmental sustainability, a conversation that is only just beginning.