Data centres could be central to the successful development of offshore wind projects in Ireland, a new report has found.
The research says that if the State's current offshore wind targets are met, then the country could produce up to 55% more electricity than it needs from intermittent renewables.
Consultants Baringa say instead of that power going to waste, it could be used in data centres which have strong and stable demand.
Many offshore wind projects could also depend on corporate power purchase agreements (CPPAs), Baringa predicts.
These are long-term agreements between companies and power producers who want to use the energy.
The report says CPPAs could de-risk the investment by energy companies in offshore wind projects, providing revenue certainty.
CPPAs would also lower the cost for bill payers by directing capital towards decarbonisation.
"Our research shows that data centres can benefit offshore wind by providing the revenue certainty required to attract investment and to build projects," said Dr Mark Turner, Partner with Baringa.
"Vice versa, this offshore wind generation can help decarbonise Ireland’s data centre capacity – the critical infrastructure acting as the bedrock of Ireland’s digitalisation."
But for the results to materialise, the report states that the Government must deliver grid investment and regulatory certainty on grid connections.
It must also make pathway for the sustainable growth of demand-side industries, such as data centres, which are key to the development of OSW in Ireland, it recommends.
Ireland will miss its targets for offshore wind delivery unless there is a step change and concerted effort from Government, the offshore wind industry, and the private sector, it claims.
"Ireland is still, of course, a number of years away from producing new offshore wind," said Michael McCarthy, director of Cloud Infrastructure Ireland (CII) which commissioned the research and represents data centre operators.
"Steps therefore need to be taken in the meantime to ensure the viability of the country’s data centre industry, given how integral it is to offshore wind delivery in Ireland."
"CII therefore welcomes Baringa’s recommendations that the Government deliver both grid investment and certainty on grid connections, as well as providing a pathway for the sustainable growth of the industry."
The report also says that the data centre industry must play its part by maintaining leadership in CPPAs and engaging with offshore wind developers.
It also must establish pathways to full decarbonisation and site new data centres in regions with the highest available grid capacity and power.
