Edinburgh rejected a 212MW data centre planned with a public park and sports facilities; Scottish Ministers have recalled the appeal amid new scrutiny of large data centres
Representative Image of a proposed green data centre in Edinburgh featuring a public park surrounded by nature (AI-generated image)

A proposed green data centre with a public park in Edinburgh has become part of a wider debate over how Scotland should assess large data centre developments. The City of Edinburgh Council’s Development Management Sub-Committee voted to refuse the scheme at 1 Redheughs Avenue on 4 February 2026, despite a recommendation from planning officers to grant permission. The decision notice was dated 9 February. Shelborn Drummond Ltd appealed, and Scottish Ministers recalled the appeal on 17 August. The proposal, described in public reporting as a roughly 210MW to 212MW development, includes data centre buildings, supporting infrastructure, sports facilities and active travel routes. The case also involves a dispute over environmental impact assessment, as Scotland introduces new rules for qualifying data centres exceeding 50MW and develops national guidance for hyperscale projects.

Why Edinburgh refused the data centre proposal

The application, reference 25/04239/PPP, concerns a proposed green data centre at 1 Redheughs Avenue in the Edinburgh Park and South Gyle area. The council’s planning report describes a scheme comprising data centre buildings, associated infrastructure, landscaping, servicing, car and cycle parking, a public park with sports facilities, and active travel routes. The application sought planning permission in principle, with full approval also sought for specified elements, including the siting of the data centre and public park, maximum building heights, active travel routes and vehicular access points. The Development Management Sub-Committee considered the application on 4 February 2026. Planning officers had recommended approval, subject to conditions and a legal agreement, but the committee voted to refuse permission. The decision notice was dated 9 February.The committee minutes record three principal policy grounds for refusal. Under National Planning Framework 4 (NPF4) Policy 1, the proposal had not demonstrated that it adequately addressed the climate emergency. Under Policy 2, it had not demonstrated that lifecycle greenhouse gas emissions could be minimised. The council also cited City Plan 2030’s Place Policy 19, finding that the proposal did not incorporate a mix of business and residential uses and that its layout did not ensure a cohesive townscape or deliver sustainable movement through the site. The decision differed from the planning officers’ recommendation, which had concluded that the proposal was acceptable overall, subject to developer contributions and other requirements. The disagreement brought the scheme’s energy and climate implications, as well as its fit with the planned character of Edinburgh Park, into focus.

The appeal and the environmental assessment dispute

Shelborn Drummond appealed the refusal to the Scottish Government’s Planning and Environmental Appeals Division (DPEA). The appeal is recorded under reference PPA-230-2794. The DPEA case page lists the appeal as received on 31 March 2026 and records that Scottish Ministers recalled it on 17 August. The case page says the appeal is being considered by ministers. Environmental assessment became a separate issue during the planning process. Edinburgh Council issued two screening opinions, in July and December 2025, concluding that an Environmental Impact Assessment (EIA) was not required. A subsequent screening direction by the Scottish Government required an EIA for the proposal, reversing the earlier position that an assessment was unnecessary.Environmental Rights Centre for Scotland, which supported the request for the screening direction, reported that the decision followed representations made on behalf of a client and that the council and developer had opposed the request. The screening direction meant that an EIA report would be required before the appeal could be fully considered. The developer’s agent subsequently indicated that an EIA report would be submitted. The dispute matters because a data centre’s environmental effects can extend beyond the site itself. Scotland’s later national EIA direction identifies issues including energy use, greenhouse gas emissions, water resources, noise, biodiversity and, where backup generators are used, potential air-quality effects. These are matters for environmental assessment, not findings that every impact will necessarily occur at the Edinburgh site.

Scotland introduces new rules for data centres above 50MW

On 17 August 2026, the Scottish Government brought a notification direction into force for proposed data centres exceeding 50MW of power capacity. Under the direction, planning authorities must notify Scottish Ministers within seven days of validating a qualifying application and provide the application documents or links to the relevant council webpages. The Chief Planner’s letter explicitly says the requirement applies both to new applications and to applications already being considered. A separate EIA direction was published on 16 September and came into force on 17 September 2026. It requires an EIA for data centre developments exceeding 50MW that fall within the specified industrial-estate or urban-development categories under Scotland’s existing EIA regulations. Developments below the threshold remain subject to case-by-case assessment under those regulations.The Edinburgh proposal has been reported at different power-capacity figures, including around 210MW and 212MW. The exact figure should be taken from the relevant application or technical documents, but the reported estimates are all well above the 50MW threshold. The new national direction is therefore relevant to the wider policy context, although it followed the Edinburgh appeal’s earlier screening dispute and should not be presented as the cause of that decision. The notification and EIA directions serve different purposes. One gives ministers oversight of qualifying applications entering or already within the planning system; the other establishes when an EIA is required for developments within its scope. Together, they reflect the Scottish Government’s decision to require closer scrutiny of large data centre proposals.

Parliament calls for national guidance before decisions on hyperscale data centres

The Scottish Parliament debated hyperscale data centres on 16 September 2026 and agreed an amended motion on national planning and spatial guidance. The motion says that new hyperscale data centres should only be approved where they have met robust environmental impact assessments. It also calls for guidance to clarify the conditions under which such developments should be permitted, including consideration of energy use, emissions, water, community benefits and the wider effects on neighbouring communities. The amended motion further states that no planning or consenting decisions on the relevant applications should be made until the guidance has been completed. It calls on the Scottish Government to report to Parliament on progress by the end of 2026 and to publish the guidance in full within 12 months.During the debate, Public Finance Minister Hannah Mary Goodlad said it was “highly unlikely that we will see decisions taken before Christmas”. That was the minister’s stated expectation, rather than a statutory moratorium preventing councils from deciding applications. The parliamentary motion expresses Parliament’s position on the timing of decisions, but does not itself create a legally binding ban. The Government has said it intends to issue updated planning and spatial guidance before the end of 2026. The guidance is expected to address how hyperscale developments should be assessed, including their environmental effects and implications for energy and heat use.

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