Ireland’s Power Grid at a Crossroads: Balancing Demand and a Renewable Future
Ireland’s electricity grid is facing a critical juncture. National grid operator EirGrid has issued a warning about potential challenges in meeting electricity demand between 2026 and 2028, signaling a need for proactive measures to ensure a stable power supply.
The Surge in Demand: Data Centres, Homes and Electrification
The anticipated increase in demand isn’t coming from a single source. A confluence of factors is driving up electricity consumption, including a projected increase of 300,000 new homes by 2030, the ongoing electrification of transport with the rise of electric vehicles, and the increasing adoption of heat pumps for heating. Though, the most significant driver is the rapidly growing number of data centres.
Currently, data centres account for roughly 20% of Ireland’s total electricity demand. This figure is expected to climb to around 30% by 2030, representing a substantial increase from just 5% in 2015. This growth is so significant that it has prompted concerns about a potential “mass exodus” of data centres if supply issues aren’t addressed.
Capacity Concerns and Emergency Measures
EirGrid’s annual All-Island Resource Adequacy Assessment highlights a need for an additional 200 to 400 megawatts of generation capacity in the early part of the next decade. Delays in bringing new generation capacity online are exacerbating the situation. To address potential shortfalls, EirGrid has Temporary Emergency Generation facilities and the Moneypoint Power Plant in County Clare available as backup options.
These facilities will be utilized only when market-based capacity falls short and system alerts are triggered. Whereas these measures provide a safety net, they are not a long-term solution.
The Transition to Renewable Energy and System Complexity
Ireland is committed to transitioning to a predominantly renewable power system. This shift, while crucial for environmental sustainability, introduces new complexities. As the sources of electricity supply change, and as society consumes electricity in different ways, the electricity industry will need to identify new ways to meet growing demand for energy.
Managing both the volume and type of new capacity will require a coordinated effort, alongside effective government policy. The capacity market must deliver new capacity efficiently to underpin the energy transition.
Dublin’s Data Centre Moratorium and Regional Shift
The strain on the grid has led to a moratorium on new data centre connections in Dublin, effective until at least 2028. This has prompted a shift in location for new facilities, with the majority now situated outside the capital, though as close to Dublin as possible.
However, the pressure remains, and the Barclays report from September 2025 indicated that Ireland’s appeal as a location for data centres “is fading” due to the electricity grid constraints.
FAQ
Q: What is EirGrid’s role?
A: EirGrid is the operator of the national electricity grid in Ireland, responsible for ensuring a stable and reliable power supply.
Q: Why are data centres a major concern?
A: Data centres consume significant amounts of electricity, and their rapid growth is putting a strain on Ireland’s power grid.
Q: What is being done to address the capacity shortfall?
A: EirGrid has emergency generation facilities available and is working to encourage the development of new generation capacity.
Q: What is the expected growth in electricity demand?
A: Electricity demand in Ireland is expected to grow by 19% by 2034.
Q: What is the current percentage of electricity used by data centres?
A: Data centres currently use approximately 20% of Ireland’s total electricity demand.
Did you grasp? Ireland recorded a new peak electricity demand of 6,024 megawatts (MW) in January 2025, and EirGrid forecasts peak demand will exceed 7,000MW by 2034.
Pro Tip: Staying informed about energy market developments and grid capacity is crucial for businesses, especially those reliant on significant electricity consumption.
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