A proposal to transform a 184-acre industrial site near Dunoon into the Killellan AI Growth Zone has reignited debate over how Scotland can align industrial regeneration with the net-zero transition.
Argyll Data Development says the campus would combine modular hyperscale and edge data centres with a “national green grid” operations hub, using microgrids to match local low-carbon generation with demand and cut curtailment. Early plans target 100–600MW of behind-the-meter capacity in phase one, scalable beyond 2GW, with total investment estimated at £15bn and up to 5,000 jobs.
Local MSP Jenni Minto has backed the bid for UK Government AI Growth Zone status. The developer cites partnerships with CorPower Ocean, Schneider Electric and Lenovo, and says it is in talks with investors and potential tenants in AI, life sciences and secure hosting.
Microgrids and private-wire networks are central to the concept, drawing on wind, solar, hydrogen and wave power with storage such as vanadium flow batteries. Proponents say this approach can improve resilience, cut costs and allow islanding until national grid reinforcements arrive.
To qualify for AI Growth Zone recognition, the project must show credible access to at least 500MW by 2030 or an equivalent behind-the-meter plan. It must also address environmental and visual impact concerns from residents, even with the site’s industrial zoning and history as a North Sea oil-rig yard.
Scotland’s renewables rollout has been hampered by transmission bottlenecks, and Killellan’s reliance on local generation will need firm power-purchase and storage agreements as well as regulatory clarity.
Supporters see the scheme as a way to anchor AI and other data-intensive industries in Scotland while integrating renewables and testing emerging technologies. Critics want more detail on supply contracts, finance, timelines and community engagement before its first phase, targeted for mid-2027.
If it delivers, Killellan could offer a model for combining high-performance computing with distributed green energy in former industrial regions — and a policy template for linking digital growth to net-zero goals.
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