Dunoon Argyll AI data centre complex plans take step forward

The Herald revealed in August that construction work was set to start in coming weeks under a plan to develop a data centre complex on the Cowal Peninsula which will harness advanced computing power to help ensure Scotland makes the most of the potential of low-carbon energy sources.

The complex is planned on land near Dunoon which housed a yard that employed 3,000 people in the 1970s making rigs that were used to produce oil and gas from huge fields that were developed off the UK.

The Killellan AI Growth Zone initiative is led by air traffic control expert Peter Griffiths.

Mr Griffiths is leading work on the initiative through the Argyll Data Development business he runs with Robert Mitchell, who owns Killellan Farm and Cowal Sand & Gravel.

The pair incorporated Argyll Infrastructure Holdings with the “idea of regenerating the Killellan and Ardyne Point area”.

AIH, which describes itself as “Scotland's pioneering force in artificial intelligence infrastructure”, has now announced an initial capital raise of £15 million.

It said that negotiations are “continuing for a further £100 million that is expected to be made available within the next three to six months”.

AIH said: “This strategic investment marks the beginning of an ambitious plan that will see AIH's AI infrastructure grow…rapidly within the next two years, positioning Scotland at the forefront of the European AI revolution.”

Flagging plans for an AI infrastructure site in Perth as well as the project on the land near Dunoon, it added: “To support this ambitious expansion, AIH has engaged European Guarantee Services in partnership with Luxembourg fund manager Ocorian AIFM to commence an initial capital raise of €2 billion. This substantial investment will fund the development of state-of-the-art AI infrastructure sites in both Dunoon and Perth, establishing a comprehensive AI computing network across Scotland.”

AIH said the Argyll project “represents the first major development in Dunoon since the closure of the United States Navy submarine base at the Holy Loch and the shutdown of the McAlpine’s gas rig construction site at Ardyne Point - events that resulted in the loss of over 15,000 jobs in the area and devastating impacts on the local community".

It added: “The project is expected to create at least 30 jobs, increasing to 150 within two years and flow-through employment of up to 2,000 jobs across the UK.”

AIH noted it had partnered with SambaNova under a three-year exclusivity agreement, selecting the Californian AI company’s “fully integrated AI rack solutions”.

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Mr Griffiths said: “By raising the initial capital and confirming the order for the purchase of the initial racks, AIH has established itself as the vanguard of AI adoption in Scotland, and this partnership with SambaNova reinforces the company's commitment to bringing world-class AI infrastructure to the region. The three-year exclusivity arrangement ensures that AIH will be the sole provider of SambaNova's cutting-edge technology throughout the United Kingdom.

“The first deployment phase will focus on establishing the foundational infrastructure, with the initial racks providing immediate computing capacity for AI workloads. The system's exceptional energy efficiency and performance characteristics make it ideally suited for sustainable, large-scale AI operations.”