Data centre projects in Ireland face legal challenge impact

In December 2025, the Commission for Regulation of Utilities (CRU) published an updated connection policy for ‘large energy users’ – a policy directly relevant to data centre developers – in which it outlined new conditions on developers concerning the connection of ‘large energy users’ to the all-Ireland electricity grid.

Under the updated policy, data centres would only be eligible for grid connection if at least 80% of the annual demand for energy that those data centres have can be met via renewable electricity generated in Ireland.

In January of this year, the Department of Enterprise, Tourism and Employment published the large energy action plan (LEAP), which sets out the government’s strategy to facilitate future investment in energy intensive sectors such as data centres, semiconductor manufacturers and life sciences, while also unlocking Ireland’s renewable energy opportunity.

However, the Irish Times reported that the policy is the subject of judicial review proceedings raised by Friends of the Irish Environment, Friends of the Earth Ireland and ClientEarth. The newspaper said it understood the application to the High Court to be focused on the fact that, under the policy, up to 20% of the energy for new data centres could come from non-renewable sources. Specific details of the application have not yet been made public by the groups.

The application for leave to bring the judicial review proceedings was listed on 23 March 2026, however it was adjourned to 27 April 2026 as the High Court did not have sufficient time to deal with it on the day.

Zara West of Pinsent Masons said: “The High Court challenge is likely to impact data centre development in Ireland by increasing regulatory uncertainty and delaying planning decisions. We will monitor and report on the progression of the case.”

Sadhbh Kelleher, also of Pinsent Masons, added: “Similar judicial review challenges have already stalled data centre major projects, such as the Art Data Centres campus development located outside Ennis, County Clare, signalling rising legal and environmental scrutiny.”

Earlier this month, Friends of the Earth Ireland led an open letter calling on Ireland’s energy minister Darragh O’Brien to alter policy in Ireland amidst concerns about the potential impact of growth of the data centre development on the country’s energy system.