Ireland's Data Centres Have Outgrown the Grid

EirGrid, Ireland's national electricity transmission operator, has forecast that electricity demand from data centres in Ireland will rise from 9.4TWh in 2025 to 14.6TWh in 2034, representing a doubling of demand relative to 2023 levels. By 2034, data centres are predicted to account for 31% of Ireland's electricity demand, up from around 22% in 2026.

At the same time, Ireland has committed to generating 80% of its electricity from renewable sources by 2030. With the current pace of data centre growth, and an already constrained electricity grid in certain regions, this target is becoming harder to hit. The core problem is not only the number of grid-connected data centres – it's where and how they are connected.

No more room at the grid

Data centres are heavily concentrated in and around Dublin, but the transmission infrastructure in the area hasn't kept pace. The Greater Dublin region has no remaining capacity for large data centre connections. Meanwhile, EirGrid has flagged that when large data centres disconnect due to transient grid faults and fall back on on-site generators, the grid suffers sudden imbalances between supply and demand. This triggers further disconnections, large swings in grid frequency, and – in extreme cases – widespread outages and load shedding, where parts of the network are deliberately cut off to prevent total system collapse. To avoid critical failure, something needs to change.

Looking past Dublin, Galway, Limerick and Cork are not viable as alternative locations. Many relevant network nodes have significant refurbishment programmes already scheduled, pushing new connections to the mid-2030s at the earliest. Regardless, relocation is not realistic for most data centre operators, who depend on proximity to urban fibre infrastructure, skilled labour and subsea cable landing points for rapid data transmission. As long connection queues grow longer, there is no obvious release valve within existing grid infrastructure.

Enter the Private Wires Bill

The Private Wires Bill, currently progressing through parliament, will allow a direct connection between an energy generator and a single electricity customer, built and owned privately, without routing through the national grid. Demand for this is clear on two fronts: the rapid growth of AI workloads and Ireland’s position as a primary landing point for transatlantic cables with a cool climate, which reduces cooling costs at scale. Data centre growth in the country shows no signs of slowing.

The Private Wires Bill attempts to solve what constrained grids cannot:

• Long connection queues – users would be able to bypasses the grid connection process entirely, giving developers control over their own timeline.
• Renewables investment – direct contracts with renewable generators will drive private investment, supporting Ireland's 2030 target without relying on state support schemes.
• Location – enables deployment in proximity to fibre infrastructure, skilled labour and subsea cable landing points, rather than being dictated by grid capacity.
• Energy resilience – eliminates exposure to grid faults, ensuring uptime and SLA compliance through dedicated off-grid gas, wind and solar assets.

Private wires will drive renewable investment – but data centre deployments will increase reliance on gas turbines for baseload. Whether HVO or biomethane can fill this gap will determine whether Ireland's data centre ambitions and its 2030 sustainability targets can truly coexist.

For a deeper dive into energy resilience, and how it varies by building type and other business factors, read Strategic Focus: Building The Business Case For Energy Resilience.