Dunoon data centres to support net zero drive in Scotland

The Herald Scotland

2 days ago

The complex will be built on land near Dunoon which housed a yard that employed 3,000 people in the 1970s making rigs that were used to produce oil and gas from huge fields that were developed off the UK.
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The Killellan AI Growth Zone initiative is led by traffic control expert Peter Griffiths who held out the prospect it could provide a major boost to the Scottish economy by supporting the development of a green energy grid and create over 5,000 high value jobs in the process.
These would include around 2,000 construction jobs, 1,200 operations posts and a further 2,400 in supporting sectors such as logistics and professional services.
Mr Giffiths reckons the data centres that are expected to be developed on the site could provide the computing power and storage capacity needed to help Scottish firms compete globally and reduce their reliance on facilities in countries such as Ireland and the USA.
'This is about strategic independence, quality employment and long-term competitiveness for Scotland,' said Mr Griffiths, who has worked on major aviation industry projects around the world. These involved overseeing the development of systems that analyse huge amounts of data to help ensure flights operate safely.
The first data hall on the Killellan site will provide an operations centre for the growth zone and house the computer systems that will be developed to manage the national green grid initiative, which is being led by Mr Griffiths and partners.
This will involve the development of microgrids that could be used to maximise the potential of low carbon energy sources by linking energy users with generators and facilities such as vehicle chargers.
Advanced computer facilities will be used to help firms manage their consumption and to ensure that the capacity of generators is utilised as effectively as possible. This will involve analysing huge amounts of data.
Mr Griffiths said microgrids could be used to overcome the problems associated with the national grid, which was developed to handle the output of a relatively small number of fossil-fuel powered generating facilities.
Companies may have to wait years to secure a connection to the national grid.
Mr Griffiths believes the green grid could help to tackle the problems that result from the fact that the UK has not developed the networks required to link facilities such as wind farms in Scotland with centres of demand effectively. This can result in renewables firms being paid by the regulator to stop generating power.
'We turn off as much power as we use,' lamented Mr Griffiths.
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The Dunoon facility is expected to be linked to 32 local Edge data centres which will support organisations to operate microgrids powered by AI. These are expected to integrate low carbon energy generation and storage facilities with smart infrastructure systems to achieve a big reduction in carbon emissions in areas such as transport.
Mr Griffiths noted that growth zone partners are working on a project to support the roll-out of charging facilities for electric trucks.
The Killellan site may provide a model for how microgrids could operate to support the net zero drive.
While data centres require huge amounts of energy, Mr Griffiths expects the growth zone will be able to meet the bulk of its requirements by utilising the output of local wind farms, solar energy and hydrogen production facilities and wave power to supplement the power it can get from existing grid connections.
This will involve the development of a private wire network.
Mr Griffiths is confident that the site will be able to support the operation of a number of data halls under a plan for a phased development.
He said he has had 'early engagement with a number of organisations across AI, life sciences, secure data processing, and public sector research who have expressed interest in future capacity beyond the first building'.
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He added: 'This includes both domestic and international interests looking for resilient UK-based hosting.'
Mr Griffiths has also had talks with international financiers who would have the firepower to support plans for a development he thinks could involve total investment of around £15 billion. This would include £6bn for the core AI data centre facilities and £3bn for Edge centres and national green grid infrastructure.
He is considering funding options for the first phase, which is expected to become operational in mid-2027.
Mr Griffiths said some locals had expressed concern about the potential impact of data centres on an area of great beauty. However, he noted the centres would be developed on land that had been used for rig production and quarrying operations and would have a low profile. The land concerned is zoned for industrial use.
Mr Griffiths is leading work on the initiative through the Argyll Data Development business he runs with Robert Mitchell, who owns Killellan Farm and the Cowell Sand and Gravel Company.
The company's partners in the initiative include Schneider Electric, computer giant Lenovo, wave energy specialist CorPower Ocean and the Commsworld digital infrastructure business.
Argyll and Bute MSP Jenni Minto has supported the Killellan project's application for support under the UK Government's AI Growth Zone initiative.