Scotland’s East Lothian Council has selected UK investment firm Sustainable Development Capital LLP (SDCL) as its preferred supplier for a potential hyperscale data center at a former coal storage site in Cockenzie, East Lothian.

Before developing the site, several steps are required to determine the project’s feasibility, including the planning application process and public consultations.

It is expected to take up to a year to finalize legal agreements before reaching the statutory public consultation stage. However, the partners have said they are keen to engage local communities as soon as possible, with the next steps likely to be confirmed in the near future.

If the project is successful in acquiring planning permission, the council intends to form a joint venture with SDCL to develop the project.

“While this process is still at an initial stage, it marks an important step forward in the potential redevelopment of part of this key site. In addition to capital investment, construction, and permanent employment, there are potential opportunities to secure long-term community benefits such as support for education and training programs in partnership with local providers. We will be working closely with SDCL and other partners to ensure any development maximizes benefits to our communities,” said East Lothian Council spokesperson for Economic Development, John McMillan.

SDCL was selected as the preferred supplier following a competitive tender process, agreed via a private report to Council in February 2025. The Council reported that it had received a large number of inquiries from operators interested in siting the data center at the former coal store.

Jonathan Maxwell, founder and CEO of SDCL, said: “We are delighted to have been selected as [the] partner for this landmark project. Cockenzie has an extraordinary history in Scotland’s energy and industrial heritage, and this stands as a phenomenal opportunity for it to take a leading role in the new industrial revolution. We are looking forward to working closely with the community in East Lothian to help the project achieve its full potential and create employment and economic growth for the region.”

Further details on the proposed data center were not disclosed.

Established in 2007, SDCL is a developer, investor, and fund manager focused on energy efficiency and decarbonization.

Scotland has a small data center market, with the majority of facilities based in Edinburgh. According to Data Center Map, Edinburgh has nine data center locations. In August, it was reported that a former oil and gas rig production site in Dunoon was set to be transformed into a data center campus. Developers of the site are vying for it to be selected as one of the UK government’s AI Growth Zones.