Planning delays ‘holding back data centre growth’ – Daily Business

Slow planning decisions are preventing Scotland from capturing a major share of the UK’s growing data economy, according to new analysis.

Analysis by Lichfields says there is a lack of clarity that developers need to invest with confidence.

While England is moving towards faster consent routes for digital infrastructure, Scotland’s system is yet to offer the same level of support, it says.

Dan Evans, associate director at Lichfields, said: “Scotland already has the ingredients for a successful data centre sector – clean power, skills and available land.

“The challenge now is to ensure the planning process keeps pace with market demand. Clearer policy direction, backed by practical tools for local authorities, would send a strong signal to investors that Scotland is open for digital infrastructure.”

Data centres currently contribute around £4.7 billion to the UK economy each year, but industry analysis suggests an additional £44bn could be generated by 2035.

The report’s call for speedier planning decisions coincides with Prof Anton Muscatelli’s call for planning to be among the issues government needs to address to grow the economy.

“In many cases, developers aren’t asking for special treatment – they just need certainty and a consistent approach across local areas,” says Mr Evans.

‘Interim national guidance, faster routes for strategic sites and early coordination with energy providers could make a real difference.

“It’s also about recognising that data centres underpin every part of the modern economy, from AI to financial services, and need to be planned for in the same way as housing or transport.

“By using existing planning mechanisms more confidently, Scotland can secure new investment, support its net-zero targets and build capacity for the industries that will define its future growth.

The report highlights the £3.9 billion redevelopment of the former Ravenscraig steelworks in North Lanarkshire, which will include one of the UK’s largest AI-ready data centres, supporting 2,000 long-term jobs and delivering a £1.2 billion construction boost, as an example of what coordinated planning and investment can achieve.

Mr Evans added: “With demand for digital infrastructure rising across every sector, from AI and financial services to life sciences and clean energy, Scotland has an opportunity to lead.

“If planning, energy and economic policy move together, the benefits will extend well beyond the data centre industry to the wider Scottish economy and workforce.”