Irish data center expansion plans draw fire

The Irish cabinet has approved a new plan aimed at attracting more investment from large energy users like data centers – and there's been strong pushback.

The Large Energy User Action Plan (LEAP) aims to encourage investment in energy intensive sectors such as semiconductors, pharmaceuticals, precision engineering, and hyperscale data centers.

Thanks to their scale and energy consumption, these industries would benefit from coordination with national infrastructure planning, the cabinet said.

"The approach set out in the Large Energy User Action Plan will enable regions across Ireland to attract investment in the next generation of strategic industry, promoting long-term economic development and providing further employment across the regions," said minister for enterprise, tourism and employment Peter Burke.

"This will enhance Ireland’s proposition as a world‑class place to do business in and as strategic knowledge-intensive regional hub for the ICT sector, where a secure, sustainable energy system supports innovation, investment and long‑term industrial growth."

The plan encourages the siting of data centers in green energy parks, co-located with renewable energy resources, including offshore wind.

However, it also allows them to be developed outside these locations, in some cases until beyond 2030, in line with existing planning arrangements. One such area is Dublin, which has raised concerns among opposition parties.

“I have major concerns with plans which went to cabinet this morning which seek to lift the ban on the development of data centers in Dublin, which speak of 'sustainable' data center development and co-locating data centers with renewable energy resources," said Social Democrat environment spokesperson Jennifer Whitmore.

"The production of renewable energy sources should be prioritized for residents and small businesses – approving new data centers only means that we continue to chase our tail in terms of climate goals and energy demand."

There are also concerns as to whether, even with the 'green' provisions, Ireland's already heavily-loaded grid will be able to cope.

Labour climate spokesperson Ciarán Ahern noted that data center power demands have grown significantly over the last decade.

In 2015, for example, they accounted for around 5% of national electricity demand – today that figure stands at 20% and is projected to reach 30% by the beginning of the next decade.

"Families and small businesses expect a reliable electricity system, affordable bills and a government that protects them from reckless decisions that load costs onto their shoulders,” Ahern commented. “Instead, they are being asked to subsidise an industry whose electricity demand is growing at a staggering pace."

Data center energy costs dip while households rise

A key talking point in the infrastructure plans rests on current household energy prices. Ireland’s recently-approved Price Review 6, for example, sets network charges on energy bills for the next five years.

Pa Daly, Sinn Féin spokesperson for climate, the environment, and energy noted this will see costs rising for households, while falling significantly for data centers.

Sinn Féin plans soon to bring forward legislation covering a prioritization framework for grid connections.

"Instead of the current ‘first come, first served’ model which data centres can often easily muscle in on, we believe who can connect to the grid and when should be based on the public good," Daly said.

“These decisions should be based on the best interests of the Irish people, not the corporate bottom line."

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