Ireland Clears Way for Energy-Intensive Investment

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Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

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Summary

A new energy action plan has been approved by Ireland's government in an effort to increase investment in data centers, semiconductor and pharmaceuticals sectors.

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The Irish government has approved a new energy plan to boost investment in energy-intensive projects, including data centers, life sciences, semiconductors and artificial intelligence (AI). 

The Large Energy Action Plan (LEAP) comes just a month after the lifting of an effective moratorium on new data center connections that had been in place since 2021 due to energy concerns. In Ireland, data centers accounted for 22% of metered electricity consumption in 2024. Key to the new plan will be the location of new large energy demands near renewable energy sources. The government said LEAP is vital to allowing Ireland to attract "the next generation of investment in energy intensive sectors over the coming decades." Due to their scale and energy consumption, the projects will be coordinated with national infrastructure planning. Industrial Info is tracking 118 data center projects in Ireland worth more than US$19 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

What's in LEAP

LEAP proposes 17 actions to be implemented over the next five years to address existing barriers to data centers and other energy intensive plants. It will use a 'plan-led' approach that includes identifying green energy parks that will co-locate the most energy intensive industries with indigenous renewable energy resources, including offshore wind. It also ensures consistency of infrastructure planning with other strategic government priorities, such as provision of housing, transport and water. Future large energy user (LEU) projects will be aligned with the development of Ireland's renewable energy resources and there will be a focus on more regional development. Today, most data centers are located in the Greater Dublin region where the government said there will still be 'limited opportunities the short-term'

The Government Take

"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 a strategic knowledge-intensive regional hub for the ICT sector, where a secure, sustainable energy system supports innovation, investment and long‑term industrial growth."

The Thorny Data Center Issue

Last month the Commission for the Regulation of Utilities (CRU) reviewed its policy on large energy users after years of enforcing a moratorium on new data center development due to mounting pressure on the country's electricity grid. In December it ruled that data centers can now be built as long as they can meet at least 80% of  annual energy demands through new renewable sources. According to ICIS research, in Europe the average percentage of energy accounted for by data centers sits between 2% and 5%, but in Ireland that sits at a worrying 22% - by far the highest in Europe. Dublin accounts for 97% of the country's data center development, and according to ICIS, the  FLAP-D market, an acronym of Frankfurt, London, Amsterdam, Paris and Dublin, accounts for over 20% of the total number of data centers in Europe. Minister Burke acknowledged the problems with the Dublin-centric data center situation, saying that they are taking 50% of greater Dublin's power. "So, capacity is very limited over the greater Dublin area over the next period of time. That's why we have to set out an investment framework, a policy whereby we can direct activity to, because there are parts where there is capacity, but we're also saying we're not going to diminish that capacity. You have to bring your energy to the table."

Mixed Reaction

Environmental groups and opposition politicians reacted strongly to the LEAP Bill, claiming that increased renewable power should be used for decarbonising homes and industry, not to fuel more data centers. It was welcomed by industry group Digital Infrastructure Ireland (Wiclow, Ireland), whose Chairman Maurice Mortell told RTE News that its members had been waiting four years for the moratorium to be lifted and that LEAP was a positive step. "We were unable to offer any new connections onto the grid, so as a result, we've lost billions of euro of investment, particularly around AI infrastructure, which has been announced in other European jurisdictions, the Nordics, Eastern Europe and down in the Mediterranean. At least now there's a roadmap to making those investments and giving those companies the opportunity to make informed investment decisions."

Key Takeaways

• Ireland approves a new energy plan to boost investment in energy-intensive projects,including data centers, life sciences, semiconductors and artificial intelligence (AI). 
• Industrial Info is tracking 118 Irish data center projects.
• Irish data centers account for 22% of total energy demand.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).