A £5 billion hyperscale data centre plan near Auchtertool, Fife, has sparked significant opposition from local residents. The proposed development, put forward by ILI Cato Ltd, involves building a large artificial-intelligence and cloud data centre on a 25-hectare site north-west of Auchtertool. The project is estimated to cost around £5 billion and would provide up to 600 MW of grid capacity, supporting data-intensive services such as AI and cloud computing.
The proposed data centre would comprise up to six large data halls, substations, access roads and security infrastructure, with some buildings reaching roughly 35 metres in height. Local residents, representing a village of around 200 homes, have lodged thousands of objections to Fife Council, citing concerns over the project's physical scale, visual impact and proximity to homes and farmland.
Residents are worried about potential noise, lighting, increased traffic and the effect on nearby horses and children, with one family only 350 metres from the site voicing safety concerns. The concerns were reiterated during a protest gathering in July when project representatives visited the village, underscoring continued local opposition to the development.
Despite the opposition, the developer argues that the centre will be powered by Scotland’s renewable electricity, describing it as a “green hyperscale” facility. The company believes the project will have significant economic benefits, with economic modelling by BiGGAR Economics forecasting roughly £708 million in Scottish gross value added during construction.
The economic benefits of the project are expected to be substantial, with around 9,660 job-years nationwide, including 1,450 in Fife. Once operational, the centre could sustain around 540 jobs across Scotland, with about 262 based in Fife. The proposal remains pending, with Fife Council yet to decide on the application.
The decision on the application comes at a time when Scotland’s wider data-centre planning framework awaits new national guidance expected by Christmas 2026. The outcome of the proposal will likely have implications for the development of data centres in Scotland and may influence future projects in the region.
The Cato AI Data Centre proposal is one of several large-scale data centre projects being considered in the UK. As the demand for data storage and processing continues to grow, the need for large-scale data centres is likely to increase, raising questions about the balance between economic benefits and environmental and social impacts.
Key points
- The £5 billion Cato AI Data Centre proposal has drawn thousands of objections from local residents over its size, energy use and impact on the village’s landscape.
- The developer argues that the centre will be powered by Scotland’s renewable electricity, describing it as a “green hyperscale” facility.
- The project is expected to have significant economic benefits, with around 9,660 job-years nationwide and 540 jobs sustained across Scotland once operational.
