Developer CX Tech has submitted plans to redevelop the site former power plant in Dumfries and Galloway into what would be, according to the Scottish Greens, one of the world’s largest data centre developments by power capacity.
The company said the project would cost £16.5 billion (US$21.8 billion) and could create up to 750 construction jobs and around 540 permanent positions. It also states that the project could help to return a nationally significant industrial site to productive use.
Chapelcross was a four-reactor nuclear power station with eight 30MW turbines, but it is currently undergoing full decommissioning. It first began generating electricity in 1959 and stopped in 2004, while its four cooling towers were demolished in 2007. As of 2012, final site clearance was planned for 2089 – 2095.
CXTech’s proposal reflects a wider trend across Europe as AI adoption drives demand for increasingly large-scale digital infrastructure. Former energy and industrial sites are becoming attractive targets for data centre developers because of their grid connections and site sizes.
CX Tech chief executive Graeme Anderson described the project as a “once-in-a-generation opportunity” for both the region and Scotland, arguing that Chapelcross could combine renewable energy resources, digital infrastructure, and employment.
The firm wants to redevelop the site as a “net zero technology campus” including eight data centres, associated infrastructure, and a dedicated training centre
However, the application has already generated strong opposition.
A local campaign against the project has attracted around 1,000 signatures, with residents warning that a 1GW facility could put pressure on energy infrastructure and contribute to higher electricity costs.
Campaigners have also raised concerns over the loss of agricultural land and woodland, as well as the visual impact of what would be a major industrial development in a largely rural area.
Environmental group Action to Protect Rural Scotland (APRS) has questioned whether the project’s economic benefits outweigh its potential environmental costs. The organisation argues that much of the development would be located on greenfield land and has raised concerns about emissions, waste generation and landscape impacts. APRS also noted that the proposed capacity would exceed that of any operational data centre currently in service globally.
The debate comes as Scottish policymakers seek greater oversight of large-scale data centre developments. In August, the Scottish government introduced new planning rules requiring local authorities to notify ministers of any data centre application exceeding 50MW, citing the need to monitor implications for energy and wider infrastructure.
That scrutiny increased further in September when Scotland mandated Environmental Impact Assessments for all new data centre projects above 50MW. The government said the move would ensure planners fully assess issues including energy demand, emissions and impacts on local communities before decisions are made.
The Chapelcross proposal is likely to become an early test of those new policies.
For the digital infrastructure sector, the project demonstrates Scotland’s growing appeal as a destination for AI-era investment. Yet it also highlights the challenges facing developers as projects rapidly scale.
While investors see economic growth and technology leadership, local communities increasingly want assurances around environmental impacts, energy consumption and tangible benefits for residents.
The outcome could have implications beyond Chapelcross. Recent Scottish government interventions, alongside growing scrutiny of data centre applications, suggest future projects will face more rigorous examination than in previous years.
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