The Nordics, Southern Europe, and even the Middle East are vying for attention, but there’s one country that seemingly has it all. In an excerpt from a new report, Scott Smyth, Founder and CEO of Scottish construction consultancy, Soben, explains why it’s time for Scotland to take centre stage.

With the traditional FLAPD markets increasingly constrained by limited power availability, scarce land, and lengthy permitting processes, the race is on to identify the next big data center hotspots. Scotland’s favorable climate and renewable energy infrastructure combined with a welcoming economic environment and skilled workforce make it a compelling choice.

Scotland’s unique advantages

Renewable energy leadership

Ask anyone what the biggest constraint in data center development is and they will invariably talk about power. The challenge is how to find land that is close to both a plentiful resilient power supply and a main fiber network.

Scotland generates more electricity than it consumes, with 33,000 GWh of renewable power produced in 2023 alone. With 15.5 GW of operational renewable energy capacity and an additional 46.8 GW in the pipeline, the country is well-equipped to power energy-intensive data centers sustainably.

This aligns perfectly with the Climate Neutral Data Center Pact, which commits operators to net-zero operations by 2030. Scotland’s combination of onshore and offshore wind power provides not just sustainability but reliability - a crucial factor for data center operators.

Robust connectivity

The huge computing power required to drive AI and machine learning (ML) is great news for Scotland and its strong fiber network. With three existing subsea fiber cables and proximity to several more, Scotland offers direct links to Europe, the Americas, and beyond. The government’s plans to enhance connectivity through additional subsea links and its Reaching 100 percent (R100) broadband initiative only strengthen this position.

Strategic land availability

Scotland is the most sparsely populated country in the UK, offering ample space for development. Twenty potential data center sites have already been identified, with many located near renewable energy sources. Of these, 13 are identified as potential hyperscale developments, the remainder as suitable for urban colocation facilities. As awareness about the potential for data center development in Scotland increases, more landowners with suitable parcels of land are likely to come forward.

A skilled workforce

As data center markets across Europe struggle with skills shortages, Scotland could provide the answer. The country is home to 19 universities, including world-renowned institutions like the Universities of Edinburgh, Glasgow, and St. Andrews. These institutions provide a steady pipeline of talent in engineering, technology, and project management – critical areas for data center operations.

Looking to adjacent industries, Scotland’s oil and gas sector could provide transferable skills and another potential talent pool. As the energy sector transitions toward renewables, many of these professionals are already moving into industries like wind power and, increasingly, data centers.

The opportunity for Scotland

The opportunity for the sector is clear, but the opportunity for Scotland is just as compelling, with substantial economic and societal benefits.

If the country realizes the 3GW in the pipeline – that’s an estimated £5.68bn ($7.23bn) of investment and an estimated £217m ($276m) annual economic benefit over a twenty-year development timeline. Projects would create jobs in construction, engineering, and operations, driving growth across supply chains and local economies.

Beyond direct economic contributions, the establishment of a data center sector in Scotland could help to accelerate planned investment in renewable energy and electricity transmission networks. This, in turn, could help to sooner establish low-carbon or net zero hubs, hosting manufacturers, green hydrogen production, and carbon capture and storage facilities.

Scotland is open for business

With an estimated 3GW of development already under consideration, there’s no doubt that Scotland is open for business.

As the industry seeks greener pastures, Scotland offers an unparalleled combination of renewable energy, strategic land, and connectivity. Its cool climate and skilled workforce further enhance its appeal, making it a natural fit for developers looking to scale sustainably.

The great news is that the country has recognized the opportunity and is actively looking at ways to create an even more welcoming environment – from site identification to connectivity, reconsidering permitting processes to community engagement. The work Scottish Enterprise and its partners are doing to prepare local authorities, and the supply chain, is vital to success.

As Soben’s home, we are keen to see the Scottish supply chain prepare for the influx of opportunity the sector will bring and encourage the drive to develop home-grown talent. By doing so, Scotland can position itself not just as a participant in Europe’s data center future but as a leader.

At Soben, we’re proud to champion Scotland’s potential. As the only Scottish construction consultancy specializing in data centers, we’re committed to driving this vision forward.

Read our full report on the opportunity for Scottish Data Centers, including a full supply chain analysis here: https://www.sobencc.com/white-papers/scottish-data-centres/