New direction for data centres in Scotland

Current National Planning Policy

At a national policy level, the current position under National Policy Framework 4 (“NPF4”) is broadly supportive of data centres. ‘Green data centres’ are recognised as a form of national development, proposals that have been identified as having national significance for Scotland’s long-term spatial strategy. A designation as national development means that the principle of the development does not need to be agreed in later consenting processes.

However, NPF4 does not expand on what is meant by a green data centre and the class of national development that it falls within is part of the ‘Digital Fibre Network’.  How that translates to the proposals currently within the system is yet to be determined. 

New data centre Directions

The question of application content has been made clearer by a recent Scottish Ministers’ direction. On 16 September 2026, the Scottish Ministers published a new Direction relating to data centres being built in Scotland. The Direction now requires an Environmental Impact Assessment (EIA) for applications for new data centres exceeding 50MW power capacity to be submitted with a planning application.

In making the direction, the Chief Planner and Director noted that there are considerable benefits where the need for EIA is identified and planned for at the outset, when there is greatest scope to integrate mitigation measures to minimise impacts. Embedding the consideration of environmental factors from the start can also help minimise the risk of delay at later stages and can support a smoother planning process.

Further, the Chief Planner noted that the Scottish Government considers it appropriate to apply caution in ensuring potentially significant environmental effects are considered from the outset for new data centre proposals.

While the direction only applies to data centres over 50MW, any data centre not meeting the 50MW threshold will still remain subject to case-by-case consideration in accordance with the existing Town and Country Planning (Environmental Impact Assessment) (Scotland) Regulations 2017.

The direction came into force on 17 September 2026 and contains no transitional provisions. The Direction therefore applies to both new applications as well as existing applications already within the planning system, including those in later stages. This could have significant impacts on developers with applications which have largely progressed through the planning process where an EIA has not been submitted.

In England, EIA remains a case-by-case determination. However, following the Woodlands Park case (covered in our May update), this process is under heightened scrutiny and remains an area of focus for the data centre industry.

More oversight by the Scottish Ministers

The recent Direction follows on from another made in August 2026, which requires the Scottish Ministers to be notified within 7 days of validation of a planning application for a proposed new data centre development exceeding 50MW.

This gives the Scottish Minsters an opportunity to call-in an application and determine it themselves, rather than the local planning authority being the decision maker.

On the same day, the Scottish Ministers exercised powers under paragraph 3(1) of Schedule 4 to the Town and Country Planning (Scotland) Act 1997 to recall an appeal relating to a proposed data centre in Edinburgh (ref. PPA-230-2794). The City of Edinburgh’s Development Management Sub-Committee resolved to refuse planning permission in principle for the data centre, contrary to the recommendation of the Council’s Chief Planning Officer. The developer appealed the decision. In the recall direction, the Scottish Ministers noted that the appeal “raises important issues regarding the interpretation and application of National Planning Framework 4 in relation to hyperscale Data Centre development, an emerging area of development in Scotland.”

These Directions show that the Scottish Ministers want greater oversight over the sector as it progresses and more proposals are put forward.

One step short of a moratorium

A further development has been a recent debate in the Scottish Parliament on hyperscale data centres which took place on the same day as the EIA Direction was made on 16 September. The Scottish Parliament voted in favour of a moratorium on planning decisions for hyperscale data centres which exceed 50MW following an opposition debate led by the Scottish Green Party.

The Scottish Greens called for a complete pause on data centre applications until new national guidance was in force. In bringing the motion, the Scottish Greens MSP stated that “it is simply impossible for local planning decisions, made on a piecemeal basis, to take account of national strategic issues, whether around fossil fuel back up, grid stability or prices.”

While the Parliament stopped short of endorsing a formal moratorium, MSPs approved amendments stating that no planning or consenting decisions should be taken on hyperscale data centre applications until new national planning and spatial guidance has been published. Parliament called on Scottish Government to report back on the development of national planning guidance by the end of the year and to publish the guidance including clear definition of what constitutes a hyperscale data centre within 12 months.

What’s next?

During the Parliamentary debate, the Minister committed to new guidance being published before the end of 2026.  The announcement of new guidance will cause some uncertainty for those data centre proposals currently in the system and developers may see a delay in the planning process as local authorities wait for more details before making any decisions.

One noteworthy point from the parliamentary motion passed is that Parliament believes that proposals for data centres should demonstrate how they minimise emissions for energy usage, not impact on water usage and how community wealth benefit will be built in to the business case. Parliament also noted that best practice for the creation of data centres includes steps to support decarbonisation and  recycle waste heat for wider community use.

We can expect these propositions to be considered within the new guidance which should hopefully also clarify what is required for a data centre to be considered a ‘green’ data centre, in line with NPF4.  

In the meantime, data centre proposals will continue to come under significant scrutiny as they move through the planning process in Scotland.

If you have any queries about consenting a data centre, please contact Patrick Munro for schemes in Scotland and Matthew Tucker for those in England and Wales.