Colin Rees

Members of the City of Edinburgh Council’s development management sub‑committee refused consent for the scheme at 1 Redheughs Avenue, where the RBS complex was demolished in 2022. The proposal, brought forward by site owner Shelborn Asset Management, would have delivered a two‑building campus with an IT load of up to 213MW, marketed as a “green data centre” powered by renewable energy.

Although officers advised that the project met planning requirements, councillors concluded that the development did not satisfy the criteria for a genuinely “green” scheme under local policy. The decision follows months of debate over the environmental implications of large‑scale digital infrastructure and the standards used to assess it.

The council had previously opted not to require a full environmental impact assessment (EIA), a move criticised by campaigners. Action to Protect Rural Scotland described the lack of an EIA as “gobsmacking”, raising concerns about the inclusion of diesel backup generators and the wider environmental footprint of the facility.

The refusal marks Shelborn’s second unsuccessful attempt to redevelop the land. The company had originally secured permission for a mixed office and residential scheme but pivoted to a data centre proposal in response to shifting market conditions and rising demand for AI‑driven computing capacity.

Colin Rees, associate director at climate‑tech firm IES, said the decision reflects a broader challenge facing data centre development across the UK.

“The decision to reject plans for an AI‑focused data centre in west Edinburgh highlights a wider challenge facing the sector, echoing recent experience elsewhere in the UK,” he said, pointing to the £1bn hyperscale data centre at Iver, Buckinghamshire, which has faced legal challenge despite earlier approval.

Rees argued that inconsistent expectations around environmental evidence are creating uncertainty for both developers and planning authorities.

“Environmental assessments are clearly an essential part of the planning process, but there remains uncertainty around what evidence is expected, when it should be provided, and how fully potential impacts should be addressed. That lack of clarity can lead to mixed messages.”

He said independent modelling can help developers demonstrate how facilities would operate in practice, test design options, and identify opportunities to reduce environmental impacts — including major reductions in water use and improved energy efficiency, with power usage effectiveness (PUE) values of around 1.2 or lower.

With AI‑driven computing demand continuing to surge, Rees said Scotland remains an attractive location for digital infrastructure investment — but only if proposals are robust from the outset.

“Meeting sustainability goals doesn’t have to come at the expense of economic or technological progress, but it does require developers to engage earlier, be more transparent, and make full use of the technologies available to them.”

Shelborn Asset Management has not yet indicated whether it will appeal the decision or bring forward a revised proposal.