Scotland data centre moratorium warning hits investment

Rimkus has warned that a proposed moratorium on new data centre developments in Scotland would deter investment and weaken the country's position in digital infrastructure and artificial intelligence.

The intervention follows reports that the Scottish Government is considering national planning guidance that could lead to a pause in new projects. The SNP is weighing action after objections from communities, local authorities and campaign groups over the scale of planned schemes and their impact on the electricity network.

More than a dozen hyperscale data centre proposals are moving through Scotland's planning system. If approved, they would add significantly to electricity demand and increase pressure on long-term grid planning.

Rimkus argued that these issues should be addressed through infrastructure planning rather than by halting developments, warning that investor confidence could suffer if Scotland appears to be retreating from support for data centre construction.

Robert Eadie, data centre director at Rimkus, said the policy debate comes at a sensitive time in competition between locations seeking digital investment.

"Scotland has a genuine opportunity to establish itself as a leading destination for digital infrastructure and artificial intelligence investment, but that opportunity depends on creating the conditions for businesses to invest with confidence. A moratorium on hyperscale data centres would send a concerning signal to the market that Scotland is stepping back from supporting the infrastructure that underpins the modern economy.

"Investors looking to deploy capital into digital infrastructure have choices, and if projects cannot proceed here, they will simply move elsewhere in the UK or Europe.

"Data centres are often misunderstood as standalone developments that serve little purpose locally. In reality, they are fundamental to almost every aspect of modern life, supporting financial, healthcare, government and streaming services, advanced manufacturing, and the AI technologies that are rapidly transforming industries worldwide.

"If Scotland wants to participate fully in the AI revolution and attract the high-value industries of the future, it cannot simultaneously restrict access to the infrastructure those industries depend on."

Grid pressure

Concerns over power demand are central to the debate. Large-scale data centres consume substantial amounts of electricity, and the concentration of proposed schemes in Scotland has raised questions about whether the existing grid can cope without major investment.

Eadie said those concerns were legitimate but manageable. He argued that the main constraint is not generation but the network needed to move and use electricity, pointing to Scotland's renewable energy base.

"The scale of some of these developments undoubtedly raises important questions around energy supply, grid resilience and sustainability, but those are exactly the kinds of challenges that strategic national planning and infrastructure investment are designed to address.

"Scotland already has abundant renewable energy resources, with wind generation regularly curtailed when the grid cannot accommodate it. The challenge is not simply generating more electricity, but investing in the infrastructure needed to convert that renewable advantage into jobs, investment and long-term economic growth.

"A blanket pause risks oversimplifying a complex issue. The conversation should instead focus on how Scotland converts its renewable energy advantage into long-term economic value by accelerating grid investment, supporting renewable generation and attracting industries that increasingly want to locate alongside abundant low-carbon power.

"Locating data centres close to renewable generation makes better use of Scotland's clean energy than exporting it elsewhere. While individual facilities require cooling, most modern hyperscale data centres use closed-loop cooling systems that recirculate water, resulting in significantly lower water consumption than many traditional industrial processes.

"Other countries are actively competing to attract data centre investment because they recognise the wider economic benefits these developments bring. The construction and delivery of hyperscale facilities support skilled jobs while creating long-term opportunities throughout local supply chains.

"Scotland possesses many of the attributes global investors are looking for, including a highly skilled workforce, significant renewable energy potential, and ambitious technology and innovation sectors. There is a real opportunity to position the country as a major player in the digital and AI economy. The question facing policymakers is whether Scotland wants to lead that transition or watch investment and opportunity flow elsewhere. Pulling the plug on data centre development would make that decision for us."

Investment debate

The warning highlights a broader tension in economic policy. Governments want to attract AI-related spending and the industries linked to it, but the infrastructure needed to support that ambition can provoke local opposition over land use, energy demand and environmental concerns.

Data centres have become a focal point of that tension across Europe. Operators and investors are looking for sites with access to land, fibre connectivity and low-carbon electricity, while policymakers are under pressure to show that expansion will not overwhelm grids or clash with climate goals.

In Scotland, the debate is sharpened by the country's renewable energy profile. Supporters of further development argue that this gives Scotland a route to attract facilities seeking cleaner electricity, while critics question whether the network is ready for a wave of power-hungry projects.

What happens next will be closely watched by developers already in the planning process and by international investors comparing the UK with competing European markets. More than a dozen proposed projects are already testing how Scotland balances electricity constraints, planning policy and its wider ambition to capture a larger share of digital and AI investment.