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Echelon is moving to the construction phase of its ‘sustainable’ DUB20 data centre, but concerns remain about the growing energy demands of these facilities.
Irish-owned Echelon Data Centres has received approval to connect one of its data centre projects to the grid, which the company described as a major milestone.
The company was in negotiations with EirGrid to provide a grid connection to its DUB20 data centre campus in Wicklow. Echelon was reportedly growing “frustrated” with how long the negotiations were taking earlier this year.
With EirGrid’s approval, Echelon said it intends to proceed to the construction phase of the campus. The company plans to create 1,100 jobs during construction of the site and 200 permanent positions once the data centre is operational. Echelon head of energy systems Cormac Nevin said the decision will ensure investment of €3.5bn into data centre and energy infrastructure Wicklow.
Echelon said it will develop onsite energy centres to provide a security of supply to the grid. The grid connection will also allow Echelon to start working on a 220KV substation that will allow access to the grid for renewable energy generated off the coast of Wicklow in the future.
The company agreed to develop this substation and link it to a large-scale offshore windfarm off the Wicklow coast in a deal with SSE Renewables in 2020.
Echelon’s data centre goals were boosted earlier this year when Starwood Capital Group invested roughly €850m to become a 50pc shareholder in the company. In 2022, Echelon raised €855m in debt financing from Starwood to facilitate the growth of its Irish data centre business.
Concerns for the grid
Nevin said EirGrid’s decision to connect DUB20 to the grid is an “endorsement of sustainable data centre development as it follows a pathway to net-zero emissions and demonstrates the role of Government policy in achieving that”.
“It is also a strong statement that Ireland takes its climate responsibilities seriously but is open for business to the data centre sector and the jobs and inward investment that comes with it,” Nevin said.
But there have been growing concerns about the impact data centres are having on both Ireland’s electricity grid and the country’s attempts to switch to renewable energy. Figures from the Central Statistics Office show that data centres account for more than a fifth of electricity consumption in Ireland.
Meanwhile, a recent report on Ireland’s energy-related emissions showed that improvements in the electricity sector have been counteracted by the growth of data centres, as their demand for energy outpaced the connection of new renewable energy sources.
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