Data centres will be required to meet at least 80% of their annual energy demand with additional renewable electricity projects generating in the Republic of Ireland.
The Commission for Regulation of Utilities (CRU) has today published its decision on a new electricity connection policy for data centres.
Under the rules, data centre developers will be allowed a six-year "glide path" for renewables to be developed and start generating.
The CRU said that new data centres connecting to the electricity network will continue to be required to provide generation and/or storage capacity, either onsite or local in proximity to match the requested data centre maximum import demand capacity.
"This generation will be required to participate in the wholesale electricity market to support overall system adequacy, while providing a potential revenue stream to the developer.," the CRU said in its decision.
When it comes to the location of data centres, the CRU said that electricity system operators must consider whether a requested data centre connection is in a constrained or unconstrained location on the electricity network.
"This will require system operators to focus on the details of the specific application and its location on the electricity network instead of the current broader regional approach," the CRU said.
"The system operators will also be required to regularly publish information in relation to the availability of capacity on the electricity network, identifying current and future constraints to provide accessible information for all stakeholders," it added.
Electricity demand from data centres has grown from 5% of national electricity demand in 2015 to 22% in 2024.
Digital Infrastructure Ireland, which represents the data centre sector, said it was pleased that the policy has finally been released by the CRU.
"We are hopeful this will end the four-year de facto moratorium on data centres and begin to reset the digital infrastructure industry here in Ireland," the group said.
Cloud Infrastructure Ireland, the Ibec trade association that represents digital infrastructure providers, welcomed the publication of the connection policy, which it said provides the needed clarity for new sustainable data centre investments in Ireland.
"The policy will also support Ireland's wider digital economy and the hundreds of Irish firms supporting the digital infrastructure sector," it said.
Wind Energy Ireland also welcomed the publication of the connection policy.
"This new policy gives certainty to large-energy users and to the renewable energy industry," said Noel Cunniffe, CEO of Wind Energy Ireland.
"It will unlock investment into Ireland, support new wind farms and help to accelerate the electrification of our energy system," he added.
The American Chamber of Commerce Ireland (AmCham) said the publication of the CRU's decision provides much-needed clarity for investors and energy users.
"Vital digital infrastructure is foundational to Ireland's ability to attract and retain investment, support high-value jobs, and enable the continued growth of the wider digital economy, all of which rely on dependable access to electricity for large energy users," said AmCham CEO Paul Sweetman.
Environmental campaign group Friends of the Earth said it may be a good decision for data centres and renewables developers, but added that it is not a good day for climate, or for households and communities dependent on expensive fossil fuels.
"Requiring data centres to 'match' at least 80% of their annual demand with new renewables does not guarantee actual reductions in emissions," said Jerry Mac Evilly, Campaigns Director at Friends of the Earth.
"This is merely an accounting exercise and data centres’ colossal energy demand inevitably means more use of fossil fuel power plants."
