EirGrid’s warning over possible ‘mass exodus’ of data centres from Ireland

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 that to Minister Eamon Ryan in 2021 warning the country had a significant power “generation deficit”.

It said they had good working relationships with technology companies but were “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”.

Asked about the briefing, a spokesperson for EirGrid said their responsibility was for a safe, secure and reliable supply of electricity now and in the future.

They said: “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.”