The Commission for the Regulation of Utilities (CRU) has recently introduced a new electricity connection policy that requires all new data centres in Ireland to provide on-site or locally proximate generation and/or storage equivalent to their energy demand. This decision comes as Ireland struggles to balance its growing data centre industry with its climate commitments.
While the policy aims to alleviate grid pressure, it does little to curb greenhouse gas (GHG) emissions. It could increase reliance on fossil fuels, as most data centres are likely to turn to gas-fired generators for on-site power generation. Without stricter sustainability guidelines, this policy risks undermining Ireland’s carbon targets and renewable energy goals.
The Growing Energy Burden of Data Centres
Ireland is one of Europe’s largest data centre hubs, with over 82 operational facilities and more in development. Currently, data centres consume 21% of Ireland’s electricity— predicted to reach 27% by 2028.
With the rise of AI and cloud computing, demand has only accelerated, forcing the Irish government to reassess how these energy-intensive facilities impact the grid. In response, the CRU has ruled that new data centres must generate their own power to reduce strain on the national grid.
However, the policy does not regulate emissions from these new on-site generation systems—it only requires operators to report them. This could allow more fossil fuel reliance, contradicting Ireland’s commitment to reducing carbon emissions by 51% by 2030.
A Sustainable Approach to On-Site Generation
Despite the concerns, data centres do not have to default to fossil fuels for on-site generation. There are sustainable alternatives that can both comply with CRU’s policy and contribute to Ireland’s renewable energy transition:
- Solar panels – can generate clean, renewable electricity for data centre operations.
- Battery storage – allows excess energy to be stored and used during peak demand periods, reducing dependence on gas generators.
- On-site wind turbines – can power operations with direct renewable electricity for larger data centres.
- Biogas – made from organic waste and is a lower-carbon alternative to traditional natural gas
Data centres don’t have to conflict with sustainability. By choosing renewable on-site generation, operators can future-proof their facilities while contributing to Ireland’s energy transition.
UrbanVolt: Helping Data Centres Transition to Clean Energy
As Ireland’s first B Corp and a leader in commercial solar energy, UrbanVolt is ready to help data centres meet the CRU’s new requirements sustainably.
Instead of defaulting to fossil fuel-powered generators, data centre operators can integrate solar power with UrbanVolt’s zero-capital solar model to generate clean energy, ensuring data centres can meet their energy needs without compromising Ireland’s climate commitments.
It’s time to rethink how we power the digital world—because a sustainable future depends on it.