Lack of power capacity forces multinationals to relocate new digital services

Several multinationals operating in the State have had to locate new digital services outside of the Republic due to the lack of power capacity in Dublin, according to data centre developer Equinix.

The claim was made as part of its planning appeal against a council decision to refuse planning permission for its proposed gas-powered data centre at Profile Park in Clondalkin.

Equinix (Ireland) Ltd operates data centres at Northwest Business Park, Citywest, Blanchardstown and Kilcarbery Park. It operates 240 data centres in 71 locations around the world.

In the planning appeal lodged with An Bord Pleanála against South Dublin County Council’s refusal, planning consultants for Equinix, Brock McClure said that due to the constrained power supply in Dublin, they understand that several multinationals have recently redirected new digital/computing services to other European countries.

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The Equinix appeal also said that arising from the dramatic increase in demand for AI infrastructure, Irish domiciled organisations and start-ups are “looking to deploy new AI services and related businesses outside of Ireland due to constraints in the local data centre market”.

Equinix has planning permission in place for a data centre at the Profile Park site to be powered by electricity but the firm has not received a commercial or technical offer to supply permanent power to the site.

In a letter to Equinix in June, ESB Networks (ESBN) turned down Equinix’s application for a grid connection “as the proposed site is within an area that has been deemed constrained by EirGrid”.

Equinix contend that ESBN’s refusal is invalid for a number of reasons.

Equinix is seeking new planning permission for the data centre so that it can be powered by gas. However, the council has refused planning permission to the gas-powered station after concluding that the applicant had failed to demonstrate that the proposed development had an appropriate grid connection.

In the appeal, Brock McClure said “the issue of grid connection is not an appropriate reason for refusal in this case. The proposal does not relate to a connection to the grid. The proposal is for on-site power generation [OSPG] to power the data centre.”

The appeal states that the OSPG “is an effective and appropriate use of the site as it would power the permitted data centre on site”.

The appeal went on to say that since the council’s refusal, Equinix is now in a position to provide evidence of engagement with a renewable energy firm relating to a power purchase agreement and the agreement would offset the energy that would be consumed by the data centre.