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Scottish Labour leadership candidate Joe Fagan has called for a new tax on data centres.

Speaking as the contest between Mr Fagan and Michael Marra enters its final days, the South Scotland MSP said he would push for a rates supplement to be implemented on data centres of over 50 megawatts.

The levy would start at 50p for every one pound of rateable value, increasing with the size of the centre.

Operators, however, could see their rates cut if they provide tangible benefits to local community, such as supplying heat for homes and businesses or investing in local infrastructure.

Benefits would be independently assessed, he said, with a 50% reduction available.

“Data centres are going to be a growing part of our economy and Scotland should be competing for that investment,” he told the Press Association

“But if some of the biggest companies in the world want to build enormous facilities here, it is fair to ask them to give something back.”

He added: “My proposal is straightforward.

“The biggest data centres would pay more in business rates.

“They could then cut that extra bill by investing in the place hosting them.

“That could mean using waste heat for district heating, strengthening local energy or water infrastructure, or giving communities a stake in the investment.

“I want Scotland to attract new technology and new investment.

“But working people and communities should benefit from the future being built around them.

“We do not have to choose between blocking investment and giving multinational companies whatever they want.

“We can welcome investment, tax it fairly and make sure the public gets something back.

“Build here. Invest here. Give something back.”

The announcement from Mr Fagan comes as the Scottish Greens are set to force a vote on a potential moratorium on the building of the controversial sites, which have experienced substantial local resistance in some proposed areas.

The party will use their opposition debate on Wednesday in an attempt to force the Government’s hand.

Ministers stopped short of a moratorium over the summer, instead reserving the right to call in data centre proposals for a final decision.