EirGrid warning over 'mass exodus' of data centres from Ireland

Electricity network operator fears that without firm plans for new connection agreements, some large data centres will exit the country

EirGrid said it had been warning of pressures on power supply since as early as 2016. Picture: File

A briefing from EirGrid, which operates the electricity network in Ireland, warned of a possible “mass exodus” of data centres from the country if new connection agreements could not be signed off on.

The presentation said EirGrid 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 that the country had a significant power “generation deficit”.

It said it 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]

“[This would undermine] the Government’s desire to benefit from the next phase of technological development in the ICT sector in Ireland [AI etc]”.

It 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.

'Zero carbon'

Its presentation warned as well of the dangers of talk around insisting that data centres were “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 and committed to low carbon and were prepared to be flexible.

EirGrid said they should look for data centre developers who understood the “near-term constraints” on Ireland’s energy supplies but still wanted “reasonable certainty to plan for future growth”.

It recommended that 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 a low-carbon and a zero-carbon grid.

The presentation was shared with the IDA in October last year amid ongoing controversy and discussions over the scale of data centre development in Ireland.

Asked about its contents, a spokesperson 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.

The spokesperson 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.”