Under the proposal, the Commission for Regulation of Utilities (CRU) would require new data centres to establish generation or storage capacity equivalent to their electricity needs, which could be implemented either onsite or in close proximity to their facilities.
The proposed rule comes as the CRU suggested electricity demand from data centres has increased from 5% of national electricity demand in 2015 to 21% in 2023.
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The CRU’s policy proposal would only apply to new facilities wanting to be connected to the national grid.
Further, any equivalent power added would have to be “dispatchable,” meaning it must participate in the electricity market and support overall system adequacy.
The rules would also force Ireland’s power providers like EirGrid and ESB Networks to evaluate the location of proposed data centres to determine if it’s in a constrained or unconstrained region and request from operators the extent to which unused grid connection capacity could be returned
The country’s grid operators would also be required to regularly map the country’s capacity to identify potential future constraint issues.
Stakeholders have until April 4 to submit comments on the proposed rules before a final decision is made.
“Data centres are a core infrastructure enabler of a technology-rich, innovative economy, which makes Ireland a location of choice for a broad range of sectors and value-added activities,” a CRU statement on the proposed rulemaking reads.
“The aim of the proposed decision is to provide a pathway for Large Energy User (LEU) connections to the electricity system, having regard to the capacity of the system in relation to [the] supply of energy and grid infrastructure.”
Ireland has long been considered a hub for data centres, serving as a home to facilities for major operators like AWS, Equinix, Microsoft, Digital Realty, and CyrusOne.
With increased interest in data centres amid the AI infrastructure boom, the CRU’s proposed rules aim to elevate growing grid constraints, adding to EirGrid’s 2022 decision to temporarily pause applications to connect new data centres in Dublin until 2028.
The CRU said as far back as 2021 that there would be “rolling blackouts” if it didn’t take action against data centre grid connections, previously proposing rules that would place greater scrutiny on new data centre applications.
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