The large Brittish financial institution Lloyds TSB has cancelled its plans to build a new data center in the south of Scotland. A Lloyds spokesman told the Dumfries and Galloway Standard the banking group would not proceed with its construction plans near the town of Ecclefechan.

The organization announced its change of heart several days after holding public hearings about the project with local residents who would become the £200m facility's neighbors. Lloyds said its interaction with locals would determine whether or not it would proceed with the build.

The Ecclefechan site has not been the only location the banking group has been considering for a data center development. In fact, it appears to not have gone as far along in the site-selection process as did another location under consideration.

Lloyds has reportedly submitted a formal planning application to build a data center in Darlington, County Durham. The firm had been waiting to submit papers formally in Ecclefechan until it had gone through the public hearings, which were held late last week.

"We are still considering potential locations to build a new data centre, however we will not be progressing with the site near Ecclefechan," the Lloyds spokesman told the Standard.

"A number of factors, including costs and relative location to other major business sites are taken into consideration in making this decision. We are still reviewing a number of strategic options across the UK and no final decision on this has yet been made."