Ireland Plans €19 Billion Investment in Electricity Network for Data Centres

A new action plan aimed at large energy consumers, particularly data centres, is set to attract nearly €19 billion in public and private investment in Ireland’s electricity network over the next five to ten years. The initiative, launched on October 3, 2023, by Minister for Enterprise Peter Burke and Minister for Energy Darragh O’Brien, focuses on upgrading the existing network to support the anticipated demand from these large users, who are expected to consume up to a third of the country’s electricity.

Central to the action plan is a requirement for large energy users to secure green and renewable energy sources for their operations. This obligation follows the release of a new policy by the Commission for Regulation of Utilities (CRU) in December, which aims to ensure that the growth of data centres aligns with Ireland’s environmental commitments. Both Ministers emphasized that the plan supports Ireland’s goal of increasing the share of renewable energy in its energy mix from 41 percent to 80 percent by 2030.

At a media conference, Minister Burke highlighted Ireland’s status as a global leader in the data centre sector, noting that these facilities directly employ 21,000 people and influence over 180,000 jobs in the information and communications technology (ICT) industry. The action plan envisions the establishment of green energy parks designed to provide sustainable energy solutions.

Minister O’Brien outlined the Government’s financial commitment of €3.5 billion, which is intended to catalyze substantial private investment. This combined effort is expected to ultimately lead to an infusion of €18.9 billion into the electricity network, enhancing security of supply and grid resilience. He stated that Ireland aims to double its energy capacity by 2040.

When questioned about the potential impact of this plan on Ireland’s greenhouse gas emissions, Minister O’Brien pointed to recent trends indicating a reduction in emissions despite population growth. He emphasized the Government’s focus on accelerating renewable energy production and capacity, particularly through increased solar energy utilization.

Additionally, Minister Burke announced that legislation allowing large users to establish private electricity grids, thereby bypassing the national grid, will be presented later this year. This move aims to facilitate the growth of data centres while ensuring that Ireland remains committed to its environmental goals.

Through this comprehensive action plan, the Irish Government seeks to balance economic growth in the data sector with a firm commitment to sustainability and renewable energy advancements.