Ireland reopens the door to data centres, but this time, energy leads the conversation

After four years of restrictions, Ireland has revised its approach to large energy users. The Large Energy User Action Plan (LEAP) and the updated connection policy from the Commission for Regulation of Utilities (CRU) represent a clear move from moratoria to a plan-led, energy-first model for data centres and other energy-intensive industries.

This is not a return to “business as usual.” Ireland now requires that new demand must actively support, rather than strain, the energy system.

With these policy shifts in mind, it's important to consider why this issue is becoming increasingly relevant

Data centres accounted for approximately 22% of Ireland’s electricity demand in 2024, with projections nearing 30% by the early 2030s if left unmanaged [1]. Grid capacity constraints, especially around Dublin, led regulators to pause new connections in 2021. While that pause has ended, Ireland has now implemented much stricter conditions.

LEAP introduces 17 coordinated actions across planning, grid delivery, and regulation, based on three core principles:

• Prioritising co-location with renewables over load-first development. Co-location means placing data centres or servers near renewable energy sources like wind farms, so that the electricity used travels only a short distance. This reduces transmission losses and improves efficiency.
• Supporting private and hybrid connection models, including regulated private wires.
• Regionalising demand to reduce pressure on the East Coast.

To better understand the real impact of these policies, it's worth outlining what has changed in concrete terms

From an energy perspective, three key shifts are critical:

• Private connections are now policy-supported: LEAP and the CRU confirm that private wire and auto-producer models are now permitted, provided they are regulated and integrated into the market. This allows projects to bypass constrained nodes when justified.
• Renewables are no longer optional: New data centres must source at least 80% of their annual demand from new renewable generation, following a defined transition path and participating in the Single Electricity Market [2].
• “Green Energy Parks” become the anchor model: Large loads are expected to cluster with offshore wind, onshore wind, storage, and grid reinforcements in pre-planned locations. This shifts risk from individual developers to coordinated infrastructure planning.

Given these pivotal changes, developers and investors now face a transformed strategic landscape. What steps should they consider?

For data centre and digital infrastructure stakeholders, the opportunity is significant. However, energy strategy must now drive site selection rather than follow it:

• Prioritise power capacity over land: Assess proximity to renewable pipelines, offshore wind landing points, and planned grid reinforcements before advancing planning through a grid feasibility study.
• Design for flexibility: On-site generation, storage, demand response, and fault-ride-through capability are becoming standard requirements in EirGrid.
• Engage early with regulators and system operators: LEAP explicitly favours early, plan-aligned engagement over speculative applications.
• Think regionally: The next phase of Irish data centre growth is more likely to occur outside Dublin, aligned with renewable surpluses rather than metropolitan demand.

The green energy park model is now central. Data centres will co-locate with renewable energy and storage clusters, or link with nearby solar and wind farms, as seen in Amazon’s recent Offaly partnership [3]. This shift moves development focus to the Midlands and West, easing pressure on Dublin. Developers must adapt by becoming renewable energy producers or partnering with existing generators—a model promising but challenging in infrastructure and master planning, especially for scale and rural locations.

To begin adapting to the green energy park model, developers should first identify potential partners in the renewable energy sector, focusing on those with existing or planned projects in the relevant regions. Engaging with local authorities and regulatory bodies early in the planning process can help navigate regulatory challenges and ensure alignment with regional development goals. Additionally, conducting feasibility studies to evaluate the suitability of locations based on proximity to renewable resources and existing infrastructure is recommended. These steps can provide a foundation for successfully integrating into the new energy landscape.

Conclusion

Ireland is once again open to data centres, but only those that strengthen the energy system rather than strain it. LEAP is not simply about lifting a ban; it is about redefining the relationship between digital growth, grid capacity, and balanced regional development. For those prepared to prioritise energy, 2026 could mark the beginning of Ireland’s next data centre chapter.