Data center operators in Ireland are facing new regulations that will require them to supply generation capacity matching their expected power demand. This proposal, issued by the Commission for Regulation of Utilities (CRU), reflects Ireland’s growing electricity demands driven by an increase in data center activities due to low corporate tax rates and less stringent data protection regulations compared to the EU.
The new rules aim to ensure that data centers can connect to the electricity grid while minimizing impacts on national renewable energy targets and carbon emissions. The CRU is currently seeking feedback on these proposals until April 4, with a final decision expected later in the year.
Autumn Stanish, a Gartner Director Analyst, emphasizes the need for data center operators to rethink their growth planning, highlighting not only economic opportunities but also the importance of grid stability and social acceptance. Public pressure has driven regulators to reconsider data center developments, necessitating that operators account for community concerns alongside technical requirements.
Stanish anticipates a significant shift in corporate strategies, predicting that over 70% of multinational enterprises will alter their data center plans by 2028 to address limited energy supplies. This evolving landscape is prompting moratoriums on new data centers in various regions, such as parts of the U.S. and Europe, primarily due to growing energy consumption from IT services, especially those involving computing-intensive workloads.
The CRU’s report stresses the importance of ensuring secure energy supplies while supporting decarbonization and economic growth. For future data center planning, it outlines necessary changes, including:
- Stringent sustainability performance measures, reducing energy and water consumption, and managing waste.
- Requirements for new data centers to utilize nearly 100% renewable energy via on-site generation.
Stanish warns of a potential trend towards energy elitism, where major companies purchase most local renewable energy capacity, leaving others reliant on traditional energy sources. The CRU’s proposed decision addresses some of these concerns but does not fully explore broader issues related to grid contribution and energy affordability.
Overall, the situation in Ireland reflects a critical moment for data center operators globally, compelling them to integrate sustainable practices while navigating regulatory challenges and community expectations.
For more details on the proposed decision, refer to the CRU Proposed Decision document.
