Former IBM Factory Site in Greenock, Scotland, Poised for Transformation into Data Center and 99MW BESS
March 25, 2026
A significant industrial site in Scotland with a deep technology heritage is set for a new life, highlighting the growing convergence of digital infrastructure and energy storage. The proposed redevelopment of a former IBM factory complex into a combined data center and battery energy storage system (BESS) underscores the strategic repurposing of brownfield sites to meet surging demand for compute capacity and grid stability.
According to local reports first published by the Greenock Telegraph, Slate Island Developments is advancing plans to develop a data center campus alongside a substantial BESS at the old IBM site on Inverkip Road in Greenock’s Spango Valley. The project website indicates the battery storage component will have a capacity of 99MW. While full specifications for the data center are not yet public, site plans suggest two large buildings with a combined footprint of approximately 74,500 square meters (over 800,000 square feet). The developer aims to secure planning permission by the end of this year.
The site carries a notable legacy in tech manufacturing. IBM opened the factory in 1954, producing typewriters before expanding into personal computers and housing a call center. After the company gradually scaled down operations, it fully exited the site by 2016, and all former buildings were demolished by 2020. A 2022 planning permission for a mixed-use development, including residential and retail, did not proceed as the owners reportedly failed to secure a viable anchor tenant. Slate Island Developments now states there is “strong interest” from an unnamed data center operator to occupy the location.
This proposal is part of a broader wave of data center interest in Scotland, a region traditionally with a minimal market despite its abundant renewable energy resources. In recent years, the Scottish government has actively promoted the country as a data center destination. Over the last 18 months, several large-scale projects have been proposed by firms like Apatura, ILI Group, and new entrants such as AI Pathfinder. Local opposition group Foxglove has identified at least 11 proposed data center projects across Scotland, with power demands ranging from 200MW to 550MW.
However, this rapid growth is not without controversy. Campaign groups like Stop Climate Chaos Scotland have called for a moratorium on new hyperscale data centers, expressing concerns over environmental impact and the potential allocation of over 5GW of the country’s power capacity to the sector. The integration of a 99MW BESS at the Greenock site may be a strategic response to such concerns, aiming to enhance grid resilience and manage the intermittent nature of Scotland’s renewable energy supply for the adjacent data center load.
Source: datacenterdynamics
