Scotland is redrawing the rules for development, with tighter data centre scrutiny, CPO reform and potential changes to nationally determined energy project thresholds.

Published: 16 October 2026
Authors: Jemma Hughes

In August, the Scottish Government directed planning authorities to notify Scottish Ministers within seven days of validating any new data centre planning application with a proposed power capacity above 50MW. As Steven Stewart pointed out in his article for techUK, the direction did not amount to a moratorium and neither does it automatically transfer decision-making from planning authorities to Ministers.

A second direction followed last month, setting out that data centres exceeding a capacity of 50MW are EIA development, meaning an Environmental Impact Assessment is required. The accompanying Chief Planner letter notes that data centres below this threshold will remain subject to case-by-case consideration of whether the project is classified as EIA.

At the same time, the Scottish Parliament passed a motion requiring the Scottish Government to:

• bring forward a clear definition of what constitutes a hyperscale data centre
• issue national planning guidance, alongside robust environmental standards and assessments, to inform national and local decision-making on current and potential hyperscale data centre planning applications.

The motion set out that consideration must be given to implementing community benefit schemes and adjusting the non-domestic rates regime, or other tax measures, to ensure communities see the economic benefits of where the data centres are sited.

The Scottish Government is to report back to Parliament on the development of the guidance by the end of this year and publish it in full within 12 months. In the meantime, no decisions on planning or consenting in relation to hyperscale data centres can be made until this has been completed. The Scottish Parliament has not gone as far as to create a moratorium, but there is now a holding pattern as the industry waits for next steps.

Compulsory purchase reform is shifting forward

Last year, the Scottish Government consulted on compulsory purchase reform. A progress report was recently published noting responses to that consultation and setting out the proposed changes which include:

• replacing the old legislation with a single Compulsory Purchase Act covering both Compulsory Purchase Order (CPO) procedures and compensation
• measures to accelerate and simplify the CPO approval process, including clearer statutory timescales, flexibility in the handling of objections, quicker procedures in unopposed CPOs and reduced duplication within the decision-making process
• digitisation of procedures, including electronic service of notices and documents supported by consistent data standards
• new powers allowing the creation of rights, such as servitudes, and temporary possession arrangements where permanent acquisition is unnecessary
• introduction of a single, standardised mechanism for taking possession of land following confirmation of a CPO – with clear and fair timescales for each part of the process
• codifying the case law on compensation rules
• measures designed to encourage earlier settlement of compensation claims and quicker advance payments to affected parties.

Important questions remain around statutory loss payments and how hope value should be treated when compensation is assessed. The Scottish Government plans further engagement with stakeholders, supported by research to build a stronger evidence base.

The consultation also considered Compulsory Lease Orders (CLOs) and Compulsory Sale Orders (CSOs) neither of which exist in the current legislation. Interestingly, most responses showed support for the principle of CSOs, particularly among local authorities who noted their potential use in tackling long-term vacant, derelict land or buildings. However, a significant minority questioned whether this mechanism would provide meaningful practical advantages once the CPO system has been reformed. Support for CLOs was less well-defined, but the Scottish Government will continue to look at both.

You can find the full report here: Compulsory Purchase Reform in Scotland: The Way Forward - gov.scot

Onshore electricity generation: Consultation on increasing the threshold for applications under the Electricity Act

The Scottish Government ran a consultation earlier this year seeking views on increasing the 50MW threshold which determines whether applications for onshore electricity generating stations are decided by Scottish Ministers or by the relevant planning authority.

The consultation asked various questions, such as should we be adopting a single threshold for all technologies (for example wind, solar and battery storage) or setting individual thresholds for each one. The responses, published on 8 October, show that:

• 71% favour a single threshold across all technologies
• 22% favour keeping the threshold at 50MW
• 64% would like to see a higher threshold of 150MW.

The full consultation response is available here  Onshore electricity generation: Consultation on increasing the threshold for applications under the Electricity Act.

We will continue to track these developments and in the meantime for further information please contact Steven Stewart and Jemma Hughes.