Future of Mobility and Infrastructure | UK data centre development challenges, using arbitration to resolve disputes, and Scottish green hydrogen scheme
Published on 30th Sep 2024
Welcome to our latest mobility and infrastructure update that addresses key trends and issues within the sector affecting your business
What is the UK government's approach to the development challenges for data centres?
Demand for data centres has grown exponentially in recent years, driven by the growing popularity of cloud-based infrastructures, data-driven businesses and the use and deployment of AI systems. Data centres produce an estimated £4.6bn in revenue each year in the UK (2021) and are forecast to support a UK tech sector worth an additional £41.5bn and 678,000 jobs by 2025.
The government has recognised the economic and technological importance of data centres. However, despite being a key element of digital infrastructure, deployment of data centres to match growing demand has faced a number of hurdles.
What are the advantages of using arbitration to resolve international infrastructure project disputes?
Infrastructure projects can be transformative. Whether it is energy, transport or technology, these developments can radically alter our physical and socioeconomic landscapes. These factors bring with them high stakes: international infrastructure projects are expensive, complex, often involve multiple parties across various jurisdictions and, often, government concessions and participation. Therefore it is vital for parties to manage risk and to identify at the outset of a project the best route for dispute resolution.
There are some key features and advantages of using arbitration, with important differences between commercial and investment treaty arbitration.
Scottish government announces fresh support for green hydrogen
The Scottish government has announced a new scheme that will provide up to £7 million in funding for green hydrogen projects across Scotland, targeting projects with a production capacity of between 5-400MW. The funding aims to cover development stage costs and support the hydrogen supply chain, helping the industry increase at scale in response to market demand.
Alasdair Allan, Acting Minister for Climate Action, commented that the funding "demonstrates that Scotland is well positioned to lead the way in developing renewable energy in a way that delivers economic benefits and shows our commitment to helping grow the hydrogen sector". The Scottish government has also said that the funding reflects Scotland's commitment to hydrogen and has highlighted that this new announcement complements the £10 million Hydrogen Innovation Scheme which has already granted nearly £7 million to 31 projects since 2023.
