Ireland looks for leap forward after confirming data centre energy plan

The Irish government is to push forward with reforms to its energy grid after lifting a ban on connecting new data centres to the network.

The 17-point plan, confirmed by the cabinet after last year’s consultation exercises, will open the door to private connections and new data centres being developed in the country.

The Large Energy Action Plan (LEAP) (32pages/6.5MB) is also aimed at supporting increased technology investment into Ireland, with renewed scope on the provision of energy intensive industries such as semiconductors, pharmaceuticals and precision engineering.

Data centre development in Ireland had been under a cloud after a moratorium was brought in in 2021 over fears about the amount of energy being used by existing facilities.

But last month Irish regulators ruled data centres could be built again – with requirements for them to generate their own energy for supply to the grid via the wholesale market, with data centre companies also being expected to source 80% of their annual demand via renewables.

Garrett Monaghan, an energy expert with Pinsent Masons in Dublin, said the action plan, which built on last year’s offshore wind support scheme, was a step in the right direction from the Irish government.

“LEAP is a very timely direction from the applicable government departments, recognising the multitude of complex engineering, political and economic benefits and demands that LEUs [large energy users] involve,” he added.

“LEAP may well take a few iterations and refinements but thankfully the government is recognising that the status quo could not continue. It needs to be seen and judged against delivery of significant and sustained grid and capex investment, policy clarity on private wires and planning generally.”

The ‘plan-led’ approach includes creating new green energy parks that will host the most energy intensive industries with renewable resources such as offshore wind, and significant investment in both infrastructure and planning for energy demand.

Also among the 17 points that form the action plan are the new private wires policy to allow individuals and private actors to create non-network infrastructure connections, with a data centre round table to be set up and provide annual updates on how the sector is engaging with the energy plan.

The action plan will be rolled out over the next five years, with the goal of completing all its targets by 2035.

Irish energy minister Darragh O’Brien said the action plan would ensure industrial development in the country aligned with ongoing energy and environmental transition work.

“A strategic approach to the development of energy intensive industry in Ireland, over the medium-term, will drive further innovation and investment in our renewable energy sector over coming decades,” he added.