Ireland Ends Moratorium on New Power Links to Data Centers
(Bloomberg) -- Ireland has lifted a de facto ban on connecting new data centers to the electricity grid around Dublin — a move that gives the industry long-awaited clarity on the requirements for building new facilities.
Under a policy published Friday by the Commission for Regulation of Utilities, any data center seeking a grid connection must install on-site generation or battery systems capable of meeting its full electricity demand. Operators will also be required to provide power back to the national grid when needed.
The rules effectively reopen the connection process for firms that can meet those conditions. The moratorium has been in place since 2021, when the regulator halted new connections amid a surge in electricity demand from the sector. At the time, the grid operator warned that surging consumption risked triggering rolling blackouts.
Ireland is one of Europe’s largest data-center hubs. The facilities now consume almost a quarter of the country’s electricity — more than all urban households and up from about 5% a decade ago.
The freeze on new connections had drawn criticism from industry groups, who argued that Ireland was missing out on global capital during a boom in infrastructure to support artificial-intelligence applications. Investment in new Irish sites had largely dried up.
The final framework closely mirrors a draft released in February, with one major addition: at least 80% of each facility’s annual electricity demand must come from new renewable-energy projects.
Utilities will also be required to publish regular updates on their capacity to accommodate new connections. Operators, meanwhile, must submit annual reports on their renewable-energy use and carbon emissions.
In July, the government outlined a plan to allow data centers and other large energy users to generate their own power independently of the grid. For now, only the grid operator can own a line that carries electricity from a generator to a customer, but legislation to change that will be brought to the Cabinet next week.
(Updates with details throughout.)
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