Data centres in Ireland will soon be required to publicly disclose their carbon emissions and use of renewable energy under a new draft policy introduced by the Commission for Regulation of Utilities (CRU). The move aims to bring greater transparency to the energy-intensive sector as concerns grow over its impact on Ireland’s electricity grid and climate commitments.
The draft decision, which also outlines new connection policies for data centres, reflects the increasing strain these facilities place on Ireland’s energy supply. Data centre energy demand has surged from 5% of total electricity use in 2015 to 21% in 2023, with forecasts suggesting it could reach 30% by 2032.
New Energy Requirements for Data Centres
Currently, new data centres must generate or store energy equal to the amount they consume. The revised policy expands this requirement, allowing energy storage or generation to be located near the data centre rather than solely on-site. Additionally, new data centres will be obligated to supply electricity back to the national grid when needed, a shift aimed at alleviating pressure on Ireland’s energy network.
EirGrid and ESB Networks, the country’s primary grid operators, have been directed to assess the location of data centres before approving connections. The CRU noted that the rapid expansion of these facilities around Dublin has exacerbated local grid congestion, prompting the need for a more balanced distribution across the country.
As part of the changes, regulators will also survey existing data centres to determine whether they can return any unused electricity capacity to the grid.
Balancing Energy Security and Climate Goals
CRU Commissioner Dr. Tanya Harrington emphasized that the proposed requirements are designed to balance energy security, emissions reduction targets, and investment in digital infrastructure.
“The policy allows data centres to build storage both on-site and in nearby locations, enabling them to scale power supply based on demand,” Dr. Harrington said in an interview with RTÉ’s Morning Ireland. She described energy storage as a key element of grid stability, noting that it can be implemented modularly to grow alongside data centre energy needs.
Despite the increased transparency measures, the new policy does not mandate that data centres run on renewable energy sources, sparking criticism from environmental advocates.
Political Backlash Over Environmental Impact
Social Democrats TD Jennifer Whitmore condemned the CRU’s decision to approve further data centre growth, arguing that it contradicts Ireland’s climate targets.
“This policy is in complete conflict with Ireland’s climate legislation,” Deputy Whitmore said, warning that the Environmental Protection Agency (EPA) has already predicted that Ireland will miss its 2030 emissions reduction targets, potentially costing the state up to €20 billion.
“How can the CRU roll out the red carpet for fossil-fuel-using data centres while we’re facing both a climate crisis and a grid capacity crisis?” she asked.
The debate over Ireland’s data centre boom is expected to intensify as the government navigates the twin challenges of digital expansion and climate responsibility.
