The Irish government has unveiled a new energy and infrastructure framework designed to rebalance data centre growth, effectively reopening Dublin to new developments after a four-year moratorium on new connections.

Ireland’s Large Energy User Action Plan (LEAP), published on January 13, 2026, sets out to unlock the country’s renewable energy opportunity by strategically locating data centres near renewable energy sources, in a bid to drive sustainable growth.

The plan follows closely behind a December decision paper from the Commission for Regulation of Utilities (CRU) which outlined a revised Large Energy Users (LEU) connection policy intended to create a clearer pathway for new data centre applications to connect to Ireland’s electricity system.

Most significantly, the paper requires data centres to meet at least 80% of their annual electricity demand with new renewable energy projects located in Ireland.

Irish electricity system operators EirGrid and ESB Networks will publish a new data centre engagement and connection process by March 31, based on the CRU decision. Ahead of this, sector experts spoke with NPM about what the changes could mean for the market.

Powering the next phase

Electricity demand in Ireland has risen by roughly 30% over the past decade, with data centres accounting for a significant share of that growth, according to the CRU. Policymakers have increasingly faced the challenge of safeguarding grid stability and security of supply, while also supporting the economic development of the data centre sector.

Under the new framework, data centres seeking grid connections will be required to underpin their demand with additional renewable and dispatchable generation capacity.

“The LEAP plan aligns with the wider national development plan – the carbon action plan – and calls for 80% of electricity to come from renewables, so it’s not completely detached from the wider national plan,” Cormac Nevin, head of energy systems at the Irish developer Echelon Data Centres told NPM.

The moratorium on new data centre connections in Dublin has been in place since late 2021, enforced by the CRU and EirGrid as concerns mounted over pressure on the national electricity network.

The revised connection policy therefore marks a significant turning point, signalling a transition from restriction toward managed, conditional growth for one of Ireland’s most strategically important sectors.

“In 2021, issues around limited grid capacity hit the market, so from the outside looking in it seemed as though Dublin was no longer open for business,” Nevin said.

Clarity

Since the LEAP framework and the CRU’s decision paper were published, Ireland’s data centre developers have a lot more clarity around challenges in the market, especially within Dublin.

“Conditions are a lot clearer now,” Nevin said. “For example, on-site generation and a need to positively impact security supply on the network, on top of the 80% renewable [electricity target] – the clarity is there now, we know what we need to do to meet those conditions.”

Dara Lynott, CEO at Electricity Association of Ireland agrees: “The decision paper provides certainty. We came from a situation where we had lack of clarity across ministers.”

Now that the government has introduced these policies to advance further data centre development and promote partnerships with renewable energy companies, there is “a lot of excitement” around the idea of energy parks and seeing the two sectors work together, Lynott said.

“The first thing I’d be doing as a developer is picking up the phone to renewable energy providers and asking them where they have sites,” Lynott said.

This is something Nevin says Echelon was quick to explore ahead of the government’s call, stating that the developer had the first two green energy parks in the country on its books. These include the DUB20 campus in Arklow, which is linked to an 800 MW offshore wind project, and the 90 MW+ DUB10 facility in Clondalkin, Dublin, which includes 120 MW of on-site generation.

The role of renewables

Moving forward, Nevin suspects that the next wave of offshore wind projects in Ireland will be a key indicator of where the government wants new data centre sites to go. Ireland’s 5 GW offshore wind development target for 2030 will directly support data centre expansion, Nevin added.

Lynott is in agreement, stating: “This could lead to a push to develop wind in new areas in Ireland.”

Given that Dublin is highly constrained with limited land opportunities for energy parks, Richard Murphy, head of energy & natural resources for Ireland at Pinsent Masons, also believes there may be space for sector coupling with offshore wind assets, specifically on the east coast.

He notes however, that any data centre applications in this area are likely to involve on-site gas, with the greening to then take place over time through corporate power purchase agreement (CPPA) procurement rounds.

“We want to see energy parks come forward in Ireland but they are likely to be located outside the Dublin region, which will be good for regional balance and help us to get demand out of the Dublin area,” he added.

Lynott added: “Putting data centres in the middle of dense urban areas that are experiencing housing shortages is always going to be difficult.”

Nevin remains hopeful that the LEAP announcement will help identify the ‘best locations’ for new demands.

Timing is everything

Although the market feels hopeful, it is not without its concerns. Nevin recognises that the planning system in Ireland is still challenging from a timing perspective, with the initial planning phase to final approval elapsing to quite an extended period. He adds that it will likely be 2030 before a significant amount of new capacity opens up in the Dublin market again.

Murphy was also quick to highlight the importance of timing: “The key to delivery of the renewables requirement will be ensuring there is alignment on timing and sequencing with this glide path and the renewable assets coming online.”

Murphy also noted that putting in place a co-ordinated system where energy infrastructure, renewable generation and data centre demand are planned together – rather than sequentially – is complex.

“Moving through the LEAP action plan at pace will be key for investors,” Murphy added. “We cannot have a business-as-usual approach to development or design challenges for flagship net zero policies such as this, otherwise capital and investment will flow to other markets.”

Despite ongoing concerns relating to delivery time, the new policies are a step in the right direction for the formally restricted Irish market and for many, the overarching feeling is optimistic.

“We’ve managed to acknowledge the economic importance of data centres to the market, integrate grid support, while mobilising the renewable energy market in Ireland,” said Nevin.

“The investment trajectory is going to ramp back up in Ireland where it had fallen away the last two three years,” he said.

“The CRU was the first positive step in a long time and it was definitely welcomed by the market in Ireland,” Nevin said, noting that it signals to the global market that Ireland is open to business.