New Electricity Connection Policy for Data Centres

You can read the decision here.

The proposed decision is an update to the existing policy to provide clarity on electricity grid connection policy for data centre development in Ireland. The announcement comes after an extensive period of consultation with industry stakeholders and ongoing dialogue with relevant government departments. The CRU is inviting comments from interested parties by the 4th of April 2025 before a final decision is made.

Data centres are a core infrastructure enabler of a technology-rich, innovative economy, which makes Ireland a location of choice for a broad range of sectors and value-added activities. In Ireland, electricity demand from data centres has grown from 5% of national electricity demand in 2015 to 21% in 2023. The aim of the proposed decision is to provide a pathway for LEU connections to the electricity system, having regard to the capacity of the system in relation to supply of energy and grid infrastructure.

The highlights of the proposed decision are:

• Scope: The policy applies to all data centres seeking to connect to the electricity network. The policy will not apply to other LEUs like large manufacturing to whom existing policy continues to apply.
• Onsite generation: New data centres connecting to the electricity network will be required to provide generation and/or storage capacity to match the requested data centre demand capacity. However, this generation/storage can now be onsite or local in proximity to the data centre.
• Dispatchable generation: The generation and/or storage will be required to participate in the electricity market, supporting overall system adequacy. The onsite or local generation may built up in a stepwise manner in line with the demand of the data centre.
• Renewable Energy and Emissions: Data centres are required to report to System Operators annually in relation to their use of renewable energy and emissions. The Electricity System Operators will annually publish this information in a summary format.
• Location and Constraint: The System Operators (EirGrid and ESB Networks) must consider the location of any requested data centre connection in respect of whether it is in a constrained or unconstrained region. System Operators will now be required to regularly publish information and the mapping of capacity on the electricity network, identifying current and future constraints to provide accessible information for all stakeholders.
• Market Sounding: The System Operators will be required to perform a market sounding exercise to understand the appetite of the data centre industry for further growth, in support of national policy development and to inform network planning. The System Operators will also request details from the data centre industry on the extent to which unused grid connection capacity could be returned.
• Gas Connections: The proposed decision is focused on electricity connection policy. CRU notes the actions relating to gas connection and flexibility measures in the Government’s Energy Security in Ireland to 2030 strategy and in the National Energy Demand Strategy, and GNI’s ongoing development of new products which will allow flexibility to be delivered on days of peak gas demand, helping to maintain Ireland’s supply/demand balance.