Edinburgh councillors have rejected a massive AI datacenter proposal, voting down plans for a 213 MW facility despite city planners recommending approval. The project, backed by Shelborn Asset Management, aimed to build on the former Royal Bank of Scotland headquarters in South Gyle, promising renewable energy commitments and public amenities.

City planners argued the economic benefits justified bending rules for mixed-use neighborhood preservation, but councillors sided with environmental campaigners after hours of debate. Opponents highlighted concerns about emissions, diesel backup generators, and misalignment with local planning priorities. The Action to Protect Rural Scotland group hailed the decision as a landmark moment in the fight over hyperscale infrastructure.

The rejection exposes a critical gap in defining what constitutes a 'green datacenter' - a problem that will face every hyperscale facility coming through the planning system. This decision comes amid growing tension between local planning politics and national ambitions to scale up digital infrastructure, with the UK government working to elevate datacenters to critical national infrastructure status.