EirGrid, the entity responsible for the operation of Ireland’s electrical framework, cautioned about a likely large-scale departure of data centres from the nation if fresh connection agreements are not ratified. In a discussion with IDA Ireland, EirGrid highlighted that it alerted authority to the issue of power supply strain as early as 2016, and reasserted its concern to the Minister for Transport in 2021, indicating a considerable power “generation shortfall”.
EirGrid revealed a robust and productive association with technology organisations, and yet consistently faced questions regarding the certainty of prospective connection agreements. The fear is that ongoing ambiguity could possibly compel some of the larger data centres to withdraw from Ireland, which could possibly lead to a massive exodus (a precedent witnessed in other technology arenas).
Such a scenario could undermine the government’s ambition to capitalise on the forthcoming wave of technological evolution in Ireland’s ICT sector (including AI). The mounting reliance on electricity by data centres in Ireland has fuelled controversy in recent times. Presently, the sector utilises over one-fifth of the entire electricity production, provoking campaigners to call for a ban on the connection of new centres to the national power grid.
EirGrid asserts that data is a crucial 21st-century commercial and lifestyle facilitator and that Ireland requires a believable transition roadmap – not a halt in operations. The company also suggests a need to determine which projects are considered crucial and if priority should be given to these specific developments.
In their presentation, EirGrid articulated the risks of demanding data centres to adopt “zero carbon” measures in a bid to counter climate change. Equating this to expecting Dublin Airport to increase its passenger tally by mandating ‘zero carbon’ aircraft use, to which they argue, no such option exists. Their stance is that it’s wiser to collaborate with players that are inventive, devoted to low carbon operations, and willing to exhibit flexibility.
EirGrid has suggested that a search be conducted for data centre developers who appreciate the imminent constraints on Ireland’s energy resources, yet desire a level of stability for future expansion plans. The company proposed a forward-thinking strategy which acknowledges the importance of individual projects, enabling developers to coordinate their work with planned augmentations to the national grid. EirGrid also advised the government to negotiate away potential speculative aspects and to acknowledge the interim stage between low carbon and a zero-carbon grid.
The company shared this presentation with the IDA last October, during ongoing discussions and potential conflicts concerning the extent of data centre development in Ireland.
EirGrid’s spokesman claimed responsibility for providing a dependable supply of electricity, both presently and for the future. He stated, “Large energy user connection policy needs a holistic and strategic approach encompassing all challenges and opportunities, and electricity supply is just one factor in this.”
Speaking on future connections, he explained that while EirGrid does take part in policy development discussions, the inclusion of large energy users into the transmission system currently follows and will continue to follow relevant instruction from the CRU (Commission for Regulation of Utilities). He confirmed that EirGrid operates as instructed in this context.