Southside Data Centre
Why the Scottish Borders?
The case for the Scottish Borders
Secure data storage is vital for Scotland’s economic growth, driven by the rapid expansion of digital communications, data analytics, and artificial intelligence. Rather than treating infrastructure in isolation, the selection of the Scottish Borders relies on an integrated strategy where renewable energy availability, landscape topography, and regional economic needs directly align.
Addressing regional energy curtailment
The wind farms of the Borders and Lammermuir Hills are among the most productive in Scotland. However, the national grid frequently lacks the transmission capacity required to export this electricity to southern demand centres during periods of high wind. To balance the system, wind turbines are regularly curtailed—meaning they are paused or turned away from the wind. Turbine operators receive constraint payments as compensation for this unused energy, a cost ultimately covered by UK energy consumers.
By locating the data centre within 9.4km of the Fallago Rig wind farm, and within the immediate vicinity of over 230MW of operational and consented wind generation, power can be consumed locally before it impacts the grid transmission system. Analysis indicates that this localised demand strategy can prevent the waste of up to £50 million of untapped energy potential annually (Scottish Futures Trust, June 2026).
Renewable energy supply
The proposed data centre directly capitalises on this consistent regional wind generation. Drawing power locally ensures that the facility operates with a highly sustainable carbon profile, utilising renewable electricity that might otherwise be lost to system constraints.
Energy security
The location provides a highly reliable, independent energy supply secured by advanced regional infrastructure. Situated near the 400kV Fallago Rig substation, the site connects to the highest tier of the national transmission system. This connectivity is further supported by the adjacent, consented Shielburn Battery Energy Storage System (BESS), which provides essential grid balancing and supply backup. Proximity to the gas transmission network also provides a further option, eliminating the need to store large volumes of liquid fuel on-site.
High speed data connection
Despite its rural setting, the site sits near two of Scotland’s primary data communication routes, ensuring high-speed transmission alongside a secondary backup route. The location also benefits from direct access to the main Scotland-to-England fibre-optic trunk, providing the low-latency connectivity required for modern data operations.
Low carbon cooling
The elevated, hillside location benefits from lower average ambient air temperatures and continuous wind exposure compared to urban UK data centre sites. This natural climate significantly optimises the efficiency of the facility’s closed-loop cooling system, reducing overall energy consumption and carbon emissions.
This sealed cooling system, paired with an on-site rainwater harvesting basin, prevents continuous draw from local aquifers or rivers, protecting regional water security.
Natural visual containment
The natural hillside topography provides built-in visual screening. The architecture and landscaping strategies are engineered to work with these existing landforms, utilising a low-profile design and sculpted perimeter earthworks to minimise visibility and preserve the rural character of the area.
Opportunities for biodiversity and conservation enhancements
As long-term landowners, Roxburghe Estates has integrated dedicated environmental conservation zones within the project boundaries. These areas are designated for ecological restoration, including a rewetting initiative designed to restore native habitats and enhance carbon storage.
Alignment with Scotland's digital strategy
Robust physical infrastructure is the foundation of any digital economy. The Southside project directly aligns with the Scottish Government’s Digital Strategy by establishing the domestic infrastructure required to connect communities to economic opportunities, support green growth, and modernise public services.
Regional economic investment
The project introduces substantial long-term employment to the Scottish Borders, supporting roughly 1,000 jobs during the construction phase and creating over 100 permanent, highly skilled technical and operational positions. Beyond direct employment, the development expands the local tax base through non-domestic rates that directly fund Scottish Borders Council services, alongside structured community wealth-building initiatives.
Reassured by the reasoning, or still unconvinced?
Either way, your view on this project matters. Read about the economic benefits this development could bring to the Scottish Borders, or share your thoughts directly with the project team.