The developers of the 600MW Hyperscale data Centre at Auchtertool intend to use energy from a pump storage scheme they are developing in Argyll, which has been labelled extremely damaging by environmentalists, to power their data centre. This story has been brought together by Penny Sinclair of the Auchtertool Action Group
This was published in the Herald ‘Outrage’. Will Argyll pumped storage hydro power Fife data centre?
ILI, the developers of the Auchtertool 600MW data centre are also applying for planning permission for a 900MW pump storage project near Loch Awe called Balliemeanoch. The original size of this development was to be 1400MW but had to be reduced after the environmental impacts of the changing water levels in Loch Awe were assessed.
The claim of the link between the two was made by ILI in a document which records an email exchange between ILI and the Planners at Fife Council. This exchange has been included in the suite of official documents for the Environmental Impact Assessment screening of the project and for the Planning Permission in Principle (in both cases called ‘Additional Information’)
In an email from Simon Munro (Logan PM, the Project Management company for the Cato data centre) to Scott Simpson (Fife Council) on 25 February he states:
“The power used in this project comes directly from the grid network. In Scotland, we have at times generated more than 100% OF OUR energy needs from renewable energy. The aim for this project though is to use 100% renewable energy, through Power Purchase Agreements with other off-site developments such as ILI 900MW PSH project in Argyll & Bute (which is expected to receive consent from ECU shortly.”
And this was reiterated in email correspondence dated on 16th March from Simon Munro to Scott Simpson where Munro stated:
“ILI is in a fairly unique position because it has a Pumped Storage Hydro project (expected to gain consent) elsewhere in Scotland, with a capacity of 900MW, and is seeking to make direct Power Purchase Agreements between the two projects.”
The only 900MW PSH scheme that ILI is currently involved in is the Balliemeanoch Pumped Storage Hydro located in Argyll and Bute 9 km northwest of the town of Inveraray and on hills above the south shore of Loch Awe
Objections to the Balliemeanoch scheme
This is an extremely controversial scheme which has had a lot of objections from locals, conservation organisations, business and statutory bodies:
SSE Renewables Objected due to the impacts on their exisiting Loch Awe hydro scheme, SEPA Objected due to peat disturbance and flood risk, RSPB due to adverse affects on priority peatland habitat, breeding curlew and lack of proposals for biodiversity enhancement and failure to comply with NPF4, There were also objections from local business the fish farm and local residents. One of the key issues was the flood risk
Nature Scot objected with the following wording:
“We object to this proposal due to significant adverse impacts on priority peatland habitat. The extent of proposed peatland restoration/ enhancement falls substantially below the level we consider necessary to achieve compensation for the loss of a minimum of 165ha of peatland habitat, with a lack of appropriately detailed information to demonstrate the peatland restoration footprint and effective delivery. The applicant’s assessment of loss of peatland habitat is also incomplete, containing no consideration of indirect and temporary loss of blanket bog in addition to incomplete habitat survey coverage.”
Buglife Objected saying: “These proposals will result in substantial impacts to the macroinvertebrates communities in Loch Awe and Lochan Airigh. The two key impacts will be inundation of habitats and rapid water fluctuations resulting from drawdown effects- effectively resulting in habitat loss.”
Penny Sinclair of the Auchtertool Action Group said:
“The developers of this 600MW data centre which will dwarf Auchtertool have put extremely scant information in their application. One thing we did however spot was their plans to use electricity generated from a pump storage scheme which they are planning to develop at Loch Awe. This will allow them to claim the data centre is powered by a 100% renewable energy.
“The pump storage scheme has been objected to by numerous environmental bodies and will be extremely damaging for the environment. If this energy is being used to power a data centre and not help us achieve our climate goals, then this permission should not be given. We cant be destroying irreplaceable upland and loch habitats in the highlands so we can build enormous data centres next to villages in the central belt.
“The Auchtertool Action Group is pleased the Scottish Government has now stipulated an EIA will be required for this massive data centre. However, we feel this should also include the impacts of the dam and the pump hydro as we are concerned about the wider damage the data centre will inflict on Scotland’s communities and wildlife.”
Kat Jones said:
“We need to have a wider discussion on the impact of hyperscale data centres on our energy systems. All the developers are claiming that they will use renewable energy but they know that they need highly reliable energy 24/7 rather than just when the wind is blowing, and that batteries offer a solution for only 2-4 hours.
“We have been told that these pump storage developments are essential to meet our climate targets and move over to 100% renewable energy. It is not acceptable if these environmentally damaging projects are going ahead so that hyperscale AI data centres can call themselves ‘green’. We fear that the rush for energy-hungry hyperscale data centres will lead to much more energy infrastructure in the landscape, far more than we would need to meet our climate targets.
“Building more energy infrastructure is not a goal in itself, the aim is to tackle climate change, which is already bringing costly impacts to Scotland’s communities. We absolutely cannot have the infrastrure that helps us balance renewables in the grid, like pump storage, diverted to power hyperscale data centres.
“I think that Scottish Government, who are currently considering whether this pump storage should get permission, should include this new information about the link with the data centre at Auchtertool in their decision making.
“If ILI are now denying any link between the pump storage project and the data centre, why did they say there was a link in an email to the Fife planners which now forms part of the official planning consultation documentation for the data centre?”
“Can we believe anything that ILI have said about their development? They certainly seem to be throwing out quite a lot of wild claims. For example that there will be thousands of apprenticeships, when they won’t have control over the building and operation of the site, and it will only employ 100 people anyway (according to ILI).”
Buglife response to the Baliemeanoch Pump Storage:
NOTES:
All the information and research done by the Auchtertool Action Group is below:
The 900MW Pump Hydro Scheme of ILI is the Balliemeanoch Pumped Storage Hydro located at NGR 03615 17578 in Argyll and Bute close to Lochan Airigh. It is approximately 4.4 km to the south of the village of Portsonachan and 9 km northwest of the town of Inveraray. The developer has further information on their website.
The Balliemeanoch PSH is current with the Scottish Government Energy Consents Unit and has a status marked as Consideration. The case number is ECU00003444
Impacts of the scheme
This is a highly controversial scheme. Originally the ILI application was for a scheme capacity of up to 1500 MW (1.5GW) with a Headpond Working Volume of 58,000,000 m³. ILI’s justification for the PSH was to assist in solving grid instability, preventing renewable energy waste, and driving Scotland’s net-zero transition. It now appears that the scheme will power the Cato Data Centre in Auchtertool, Fife. Supported by National Planning Framework 4, the PSH project is classified as a “National Development” meant to provide public energy security, system resilience, and lower consumer bills. The reality is the power generated through the Balliemeancoh PSH will now be diverted to power the hyperscale Cato Data Centre, enriching tech conglomerates while adding minimal local economic value and tearing up pristine Highland habitats.
The original 1.5 GW scheme was highly controversial because it threatened to cause severe flooding, ecological destruction, and a major carbon paradox – building a renewable energy generation scheme to reduce the reliance on fossil fuels whilst destroying a massive carbon store. Following the submission of objections from a range of individuals and organisations the scheme was downgraded by ILI to 900 MW and the proposed upper head pond storage area was reduced from approximately 52 million cubic meters to approximately 15 milllion cubic meters. Despite this downgrading many of the original objections appear to still remain.
Objectors to the scheme have included:
Residents who would be impacted by potential flooding:
“ILI’s submission not only ignores the 50 properties and 100s of people listed as vulnerable in that document, but chooses to model the project’s effects on flooding against a far higher 1:200 flood level of circa 40m which was noted in a recent study by Drax (another company with a vested interest in increasing both water availability and permitted loch fluctuation). Their submission neglects to assess the effect of the change in both loch range and anticipated flooding levels on the consequently far greater number of existing properties, scheduled monuments, areas of farmland and stretches of road which sit below that heightened flood level.
Such contempt for the communities and heritage of Loch Awe does not build confidence that the facility will be well managed and respect the interests of local people and of public access to the loch. If a dam was being built with the effect of increasing loch levels by 1-2m the project would need to buy out all affected owners, not simply ignore them in their modelling!”
Source: Comment in objection submitted by Simon and Heather Chapple of 21E Lochaweside, Dalavich, Taynuilt, PA35 IHS.
Source: https://www.energyconsents.scot/ApplicationDetails.aspx?cr=ECU00003444&T=4
Businesses
Dalmally Golf Club
“Dalmally Golf Club object to the proposal of the development at Balliemeanoch on the grounds that the upper operating level proposed will impact drainage on the course to the river orchy and as a result will have a negative impact on the club to maintain a course in a reasonable condition for members and visitors. The club relies on volunteers to survive because of the high costs to run the club and if this development goes ahead it may be the tipping point for the club, A course to damp to play on can’t make money to survive.”
Farmers
“Farming in Glenorchy has been notoriously difficult over the years due to too high levels being maintained in Loch Awe. I appreciate this is for commercial reasons but even higher levels being proposed will only exacerbate our problems. It should be noted that the National Farmers Union of Scotland has also highlighted how the farms and crofts around Loch Awe and the River Orchy will be impacted by the Balliemeanoch PSH proposal.”
Source: https://www.energyconsents.scot/ApplicationDetails.aspx?cr=ECU00003444&T=4
Argyll District Salmon Fishery Board
“In Summary, Argyll District Salmon Fishery Board object to the proposal of the development at Balliemeanoch on the grounds that it will cause a disproportionate detrimental effect on Atlantic salmon and other freshwater fish. The statement made in the aquatic ecology assessment concluded that during operation there would likely be a Moderate Adverse effect (Significant) on migratory fish species in Loch Awe and River Awe, including Atlantic salmon, brown/sea trout, European eel, and lamprey species. We also add that the development will cause detriment to the use of the fishery resource that is a significant contributor to the local economy and recreational resource.”
Source: https://www.energyconsents.scot/ApplicationDetails.aspx?cr=ECU00003444&T=3
Dawnfresh Fish Farming
“We object to the granting of consent for this development.”
Reasons for objection:
- We object to the granting of consent unless site specific assessments are carried out to assess the effects of the changes to rate and frequency of water levels on our fish farms.
- We object to the granting of consent unless a water quality monitoring programme is made a condition of any consent issued.
- We object to the granting of consent unless an assessment is undertaken of the potential connectivity for adverse levels of underwater noise to our fish farms.
Source: https://www.energyconsents.scot/ApplicationDetails.aspx?cr=ECU00003444&T=3
SSE Renewables
For the purposes of the EIA the Loch Awe Scheme is a “material asset” that is likely to be
significantly affected by the Proposed Development due to its design (particularly the intended use of Loch Awe as a bottom storage reservoir), technology, location, size and scale. In the view of SSER, if the Proposed Development is consented on the basis of the information disclosed in the Environmental Report (“the ER”), it is likely that it will have a significant adverse effect on SSER’s ability to operate the Nant and Inverawe elements of the Loch Awe Scheme safely and efficiently. In the view of SSER, the Proposed Development has the potential to significantly imbalance the cascade leading not only to generation inefficiencies but also potentially increasing operational risks during periods of flood, drought and more typical climatic conditions.
Community Councils
Glenorchy and Innishail Community Council
Agreed to object to the above proposed development on the following grounds:
- Impact on Loch Awe water levels.
- Significant landscape and visual impacts over a period of 7 years with lasting significant impact in certain areas.
- The loss of Golden Eagle habitat during 7 year construction period and impact on other raptor species.
- The permanent loss of 1.65km2 of blanket bog during construction.
- Cumulative Effects – the size and scale of this development added to those already in the pipeline appears excessive for one fragile rural area. We would argue that due consideration must be given to the cumulative impact on the health and well-being of our population and the resilience of our local economy in the determination of this application.
Source: https://www.energyconsents.scot/ApplicationDetails.aspx?cr=ECU00003444&T=3
South Lochaweside Community Company
“We wish to object to the above application based on the following points:
The level control measures mentioned in the EIS are misleading through being based on erroneous loch level “quotes” and measurements. Despite many requests we have been unable to get a definitive statement of how the proposed plant will be controlled and under what parameters they will operate.”
Source: https://www.energyconsents.scot/ApplicationDetails.aspx?cr=ECU00003444&T=3
Conservation Organisations
NatureScot
“We object to this proposal due to significant adverse impacts on priority peatland habitat. The extent of proposed peatland restoration/ enhancement falls substantially below the level we consider necessary to achieve compensation for the loss of a minimum of 165ha of peatland habitat, with a lack of appropriately detailed information to demonstrate the peatland restoration footprint and effective delivery. The applicant’s assessment of loss of peatland habitat is also incomplete, containing no consideration of indirect and temporary loss of blanket bog in addition to incomplete habitat survey coverage.”
RSPB
RSPB Scotland objects to this proposal for the following reasons:
• the Proposed Development’s significant adverse impacts on priority peatland habitat;
• its significant adverse impacts on breeding Curlew (Numenia arquarta); and
• the lack of proposals for biodiversity enhancement and failure to comply with the
requirements of NPF4 Policy 3.
Buglife
“These proposals will result in substantial impacts to the macroinvertebrates communities in Loch Awe and Lochan Airigh. The two key impacts will be inundation of habitats and rapid water fluctuations resulting from drawdown effects- effectively resulting in habitat loss.”
Source: https://www.energyconsents.scot/ApplicationDetails.aspx?cr=ECU00003444&T=4
SEPA:
Date – 10 June 2025
“Due to a lack of information regarding both flood risk and peat we would be unable to
remove our existing holding objection until further information is provided.”
Areas of concern:
- Flood risk – insufficient information supplied by ILI to determine the potential flood risk impacts.
- Substantial amount of peat disturbance.
Source: https://www.energyconsents.scot/ApplicationDetails.aspx?cr=ECU00003444&T=7
Date – 22 December 2025
“Unfortunately, we must maintain our objection to this application on peat re-use and recommend that determination is deferred until further information is provided.”
Areas of concern:
- The details of peat depths have not been provided for the location of some of the proposed infrastructure.
- Lack of a single overview map of the infrastructure overlain on the GWDTE.
Date 3rd September 2025
“We remove our objection to this application on the basis of flood risk subject to the
modification in Section 1.11 being made to the proposal. If this is not made, then please
consider this representation as a holding objection. In addition, we maintain our objection to this application on peat re-use and recommend that determination is deferred until the further information is provided.”
https://www.energyconsents.scot/ApplicationDetails.aspx?cr=ECU00003444&T=4
Press Articles
Quote from article:
Aedán Smith, head of policy and advocacy, RSPB Scotland, said: “People across Scotland are increasingly concerned about the impacts of climate change and the decline in our incredible wildlife. We support renewable energy and storage, and new infrastructure will be needed to tackle the climate crisis, but this must not be at the cost of important places for nature which can also play a crucial role in addressing climate change.
“It’s disappointing to see a National Development proposal which has failed to properly consider impacts on nature. To protect our landscapes and species for generations to come, we must make careful decisions. Excavating 1.6 million cubic metres of peat would not only release damaging carbon dioxide emissions but would lead to the loss of vital habitats for bird species that are in decline across Scotland. As such, we have objected to this damaging proposal.”
Source: https://www.scottishconstructionnow.com/articles/proposed-hydro-scheme-could-harm-iconic-scotland-nature
https://www.westcoasttoday.co.uk/news/balliemeanoch-hydro-plan-vastly-reduced-following-objections