Echelon Data Centres said a key decision by Eirgrid to provide a grid connection for the company's DUB20 data centre campus in Co Wicklow will ensure investment of €3.5 billion and 1,300 jobs.
Echelon said it will create 1,100 jobs during construction of the new data centre campus in Arklow. 200 permanent positions will also be created once the data centre is operational.
DUB20 is the first large-scale data centre to meet the Commission for the Regulation of Utilities' 2021 criteria for data centre connections.
Onsite energy centres at the facility will have the capacity to provide security of supply services to EirGrid, the country's Transmission System Operator (TSO), when renewable generation output drops below grid demand.
The grid connection will allow Echelon to begin work on a 220kV substation at the site that will allow access to the grid for renewable energy generated off the coast of Wicklow in the future.
Echelon is also investing in solar, battery energy storage systems, and renewable fuels to replace fossil fuel consumed by the data centre.
A spokesperson for Echelon described the decision as an important endorsement of responsible data centre development in Ireland and a major milestone for the company.
Echelon Head of Energy Systems Cormac Nevin said that DUB20 is a model for the future.
"EirGrid's decision to provide a grid connection for the facility will ensure investment of €3.5 billion in data centre and energy infrastructure in Co Wicklow," Mr Nevin said.
"It is an endorsement of sustainable data centre development as it follows a pathway to net zero emissions and demonstrates the role of Government policy in achieving that. It is also a strong statement that Ireland takes its climate responsibilities seriously but is open for business to the data centre sector and the jobs and inward investment that comes with it," he added.
Earlier this year, Echelon announced that Starwood Capital Group had invested about €850m to become a 50% shareholder in the company and provide material capital for its continued growth.
The transaction also included a new €900m debt facility provided by Morgan Stanley and United Overseas Bank.
Echelon said it now intends to proceed to the construction phase at DUB20.
