Echelon Data Centres, an Irish-owned company, is advancing to the construction phase of its DUB20 data centre in Wicklow, following a significant approval to connect the project to the national grid.
This approval, granted by EirGrid, marks a major milestone in developing the ‘sustainable’ data center, which aims to play a key role in Ireland’s growing tech infrastructure.
Echelon had faced delays earlier this year during negotiations with EirGrid over the grid connection, causing frustration within the company.
However, with the green light now secured, Echelon plans to move ahead with construction, creating 1,100 jobs during the build and 200 permanent positions once the data center becomes operational.
According to Cormac Nevin, Echelon’s head of energy systems, the project is expected to drive an investment of €3.5 billion into data center and energy infrastructure in the region.
The grid connection also enables Echelon to develop a 220KV substation, facilitating future access to renewable energy from offshore wind farms along the Wicklow coast. This is part of an ongoing collaboration with SSE Renewables, which began in 2020.
Earlier this year, Echelon received a financial boost when Starwood Capital Group invested €850 million for a 50% stake in the company, following a previous debt financing deal worth €855 million in 2022 to support Echelon’s Irish expansion.
Despite these developments, concerns persist about the increasing energy demands of data centres. Cormac Nevin described the grid approval as a vendor, segment of sustainable data center development, highlighting its alignment with Ireland’s net-zero emissions goals.
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He added that the move signals Ireland’s commitment to both climate responsibilities and continued investment in the data center sector.
However, critics point to the strain data centers place on Ireland’s electricity grid. According to the Central Statistics Office, data centers account for over 20% of the country’s electricity consumption.
Additionally, a recent report indicated that the rising energy demand from data centers has offset improvements in renewable energy usage, raising questions about Ireland’s ability to meet its climate targets.
