Data centres are an essential component of Ireland's multinational tech sector but also place a significant strain on the electricity grid. Photograph: iStockhas settled terms to provide a national grid connection to Echelon’s proposed data centre near Arklow, potentially prompting other promoters to ask why their projects can’t secure connections to the electricity system.
With surging demand rising faster than Ireland’s ability to generate power, EirGrid stopped talks in 2022 with dozens of data centre promoters in a bid to ease pressure on the power network and maintain the security of supply. But critics of EirGrid have argued that the State needs not only new generation but also new transmission capacity, the grid operator’s responsibility.
The Echelon founder is businessman Niall Molloy, who is also managing director of Aldgate Developments, a property group with Dublin and London investments. Mr Molloy and co-investors own half the business, with US private investment firm Starwood Capital holding the other half. Still, two people briefed on the negotiation said final agreement was close. Asked about the talks, Echelon said: “We wouldn’t comment.”