Back Online: Ireland’s New Framework for Data Centre Connections
A suite of plans and decisions (see here, here and here) published in late 2025 and the first half of 2026 has reset the framework for data centre connections in Ireland. This follows the effective moratorium on new connections which was put in place in 2021. For data centre developers, energy developers, energy investors, Independent Power Producers (IPPs) and utilities, understanding what has changed and what is required of new projects is now a commercial prerequisite.
From Moratorium to New Framework
Ireland’s data centre sector is significant by any European measure. Dublin ranks as the second largest data centre market in Europe with approximately 1,150 MW in operation as of mid-2025, and data centres accounted for 22% of metered national electricity consumption in 2024. EirGrid’s median growth scenario projects that share rising to 31% by 2034. That growth trajectory prompted the Irish energy regulator, the Commission for the Regulation of Utilities (the CRU) to impose a de facto connection moratorium in 2021, while designing a more sustainable policy framework. The new framework launched on 12 December 2025 and applies to all applications subsequently received. Earlier applications will be assessed under earlier policies.
How the New Policy Works: The Basics
The new policy framework began with the Large Energy User Connection Policy, which ended the moratorium on new data centre connections. EirGrid followed up with its detailed Data Centre Connection Offer Process and Policy (DCCOPP3). This replaces earlier policies and sets out the conditions under which data centres can now apply and connect.
Not all data centres face the same requirements. The policy uses a simple size test: how much power does the site need to draw from the grid? The policy applies to sites with a Maximum Import Capacity (MIC) of 1 MVA and above. Sites below this threshold fall outside the scope of the policy, though locational constraints will be considered when assessing any connection requests. Medium-sized sites, between 1 MVA and 10 MVA, face moderate obligations. The largest sites, 10 MVA and above, face the most demanding requirements. Almost every hyperscale and co-location data centre in Ireland falls into this largest category.
The Four Key Obligations
Four headline obligations now apply to large data centre connections.
1. Bring Your Own Generation:
Every data centre must be able to power itself entirely from its own generation if needed. In practice this means providing new dispatchable generation capacity (e.g. gas turbines, battery storage) large enough to cover 100% of the site’s electricity demand. This generation can be located at the data centre itself or nearby on the same local network. It must also participate in Ireland’s electricity wholesale market, making it available to the wider grid when it is not needed on site. Further, following execution of the data centre Connection Agreement, data centres with dispatchable onsite and/or storage must ensure that these units participate in the Capacity Market (and follow the rules set for these units). New generation and/or storage linked to a data centre may only bid for a one-year Capacity Remuneration Mechanism (CRM) contract.
The rules differ slightly by size. Mid-sized data centres (1 to 10 MVA) can use behind-the-meter generation (i.e. power produced on site that reduces what the data centre draws from the grid). The largest data centres (10 MVA and above) must have their generation separately connected and metered, with its own independent grid connection applied for separately. Importantly, a large data centre cannot increase its electricity demand from the grid until the matching generation capacity has been built and connected. When sizing the generation, developers must account for the fact that different technologies deliver different effective outputs.
2. Commit to 80% New Irish Renewables Within 6 Years:
Within six years of the data centre first switching on, it must be sourcing at least 80% of its annual electricity needs from new renewable energy projects located in Ireland. Developers can use repowered renewable projects to meet this requirement, but cannot count existing renewable generation or projects already supported by government subsidy schemes. A credible plan for how the 80% target will be met must be submitted as part of the connection application, with annual progress reports required thereafter. If a data centre fails to meet the target, the grid operator can reduce the amount of electricity it is permitted to draw from the grid or terminate the Connection Agreement entirely. Developers need to plan carefully for the impact of network location and curtailment. In parts of Ireland, renewable generators are regularly constrained off the system, meaning they produce less electricity than they could, which affects how much generation capacity is actually needed to meet the 80% requirement.
3. Connect Where the Grid Can Take You:
A data centre can only connect in an area where the existing electricity network has enough capacity to handle it without requiring major new infrastructure. If the grid in a particular area cannot accommodate a new data centre without significant reinforcement works, the application will be rejected. This matters most in Dublin, where grid capacity is extremely tight and likely to remain so in the short to medium term. Data centres looking at regional locations, particularly those close to existing or planned renewable generation, are in a much stronger position under the new framework.
4. Meet the System Stability Requirements:
Every data centre connection application must pass a System Stability Assessment. This tests whether the data centre can remain connected to the grid or reconnect sufficiently quickly when a momentary fault or disturbance occurs on the electricity system. This capability is known as Fault Ride Through (FRT). On 1 April 2026 EirGrid issued a formal Grid Code Modification Recommendation and Compliance and Derogation Framework to the CRU for a direction. A two-year derogation period has been proposed to give existing data centres time to upgrade their systems. New applicants must provide dynamic models and details of equipment to be installed to mitigate stability issues as part of their application. This is a live and evolving area and developers should be building compliance costs into their project budgets now.
The Planning Dimension
A grid connection offer is only half the story. Data centres and their associated generation facilities also require planning permission, and the two processes do not run on the same clock. A connection offer can be secured while a planning application is still live, but a data centre cannot connect until both are in place. Under DCCOPP3 and the ESB Networks process, planning status is heavily front-loaded: for EirGrid, a validated planning application for the data centre must be in place before the mandatory pre-application meeting, which must take place before any formal application can be submitted. Full planning permission for the Nominated Generation, free of any judicial review period, is required before offer acceptance. So, the reality is that planning milestones now condition entry to and progress through the connection process.
Risk Warning: Ongoing Legal Challenge
The new policy contains a note of warning. It is currently the subject of a legal challenge from environmental NGOs, Friends of the Irish Environment, Friends of the Earth Ireland and ClientEarth, who are seeking more ambitious climate and environment commitments from the CRU, the core complaint being that the policy locks in fossil-fuel use. The case is currently scheduled for hearing in May 2027. EirGrid’s position is unambiguous: applicants who proceed on the basis of the current framework whilst proceedings are pending do so entirely at their own risk, and EirGrid accepts no responsibility or liability for any changes that may result. Until the proceedings are resolved, that risk should be squarely factored into investment and development decisions.
Ireland enters this new chapter with significant advantages: strong macro tailwinds, a data centre supply chain with a proven international track record, and a consistent position as one of Europe’s leading data centre markets. The framework is demanding, but for developers who engage early and take integrated advice across grid, planning and legal workstreams, the opportunity is real.
Click here and here to view our previous articles on data centre connections.
To discuss how these changes affect your project, please contact the William Fry Energy & Infrastructure team.
Contributed by Sophie Nicholson
