Electricity network operator EirGrid warned of a possible “mass exodus” of data centres from the State if new connection agreements could not be signed off on.
In a briefing to IDA Ireland, EirGrid said it had been warning of pressures on power supply since as early as 2016 and had escalated the matter to the Minister for Transport in 2021 warning the State had a significant power “generation deficit”.
It said the grid operator had good working relationships with technology companies but was “being continually asked” about the likelihood of firm plans for new connection agreements.
Because of ongoing uncertainty, the briefing warned: “The big concern is that some of the large data centres decide to exit Ireland and that, in turn, leads to a mass exodus (as has happened previously in other technology sectors).
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“[This would undermine] the Government’s desire to benefit from the next phase of technological development in the ICT sector in Ireland (AI etc).”
Data centres in Ireland have become increasingly controversial in recent years, as their use of electricity escalates. The sector now consumes more than a fifth of all electricity generated here, with campaigners demanding a moratorium on connecting new centres to the national grid.
EirGrid said data was a “critical 21st-century enabler of business and living” and that Ireland needed a “credible transition plan – not a shutdown”.
EirGrid also said work needed to be done on deciding which projects were considered critical and whether there should be a hierarchy that gives priority to those developments.
The agency’s presentation warned of the dangers of talk about insisting that data centres be “zero carbon” to help combat climate change. “Saying [data centres] must be ‘zero carbon’ is equivalent to saying that Dublin Airport can grow passenger numbers if they use ‘zero carbon’ aircraft,” it said. “No such proposition exists today!”
It said the best choice was to work with operators that were innovative, committed to low carbon and prepared to be flexible.
EirGrid said it should look for data centre developers that understood the “near-term constraints” on Ireland’s energy supplies but still wanted “reasonable certainty to plan for future growth”.
It recommended a future strategy take account of the importance of specific projects and allow developers to synchronise work with already planned additions to the national grid. It said the State should also seek to “remove the potential for speculation” and recognise the reality of a transition period between low carbon and a zero-carbon grid.
The presentation was shared with IDA Ireland in October last year amid ongoing controversy and discussions over the scale of data centre development in Ireland.
A spokesman for EirGrid said its responsibility was for a safe, secure and reliable supply of electricity now and in the future.
“We recognise that electricity supply is only one consideration in setting large energy user connection policy, which requires a holistic and plan-led approach taking account of all challenges and opportunities,” he said.
The spokesman added: “In regards to future connections, while EirGrid participates in calls to support policy development, the connection of large energy users to the transmission system is currently aligned and will in future continue to align with relevant direction from the CRU [Commission for Regulation of Utilities]. EirGrid acts as directed in this area.”
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