Ireland’s electricity grid operator, EirGrid, is facing a “challenging situation” through 2026 to 2028 as demand surges from a combination of economic growth, a projected increase of 300,000 homes, and the energy-intensive requirements of data centres, according to recent reports.
The strain on the national grid has prompted EirGrid to warn that unchecked expansion of data centres could lead to a deficit in generation adequacy. A report by Barclays in September 2025 highlighted that Ireland’s appeal as a location for data centres “is fading” due to the pressure on the electricity grid. The report noted a 2021 moratorium on fresh grid connections in Dublin, effective until at least 2028, has stalled growth.
Electricity demand from data centres has already risen significantly, reaching 22 percent of total demand, with forecasts predicting this will increase to 31 percent by 2030. This represents a substantial increase from 5 percent in 2015. 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.
The situation has led to an effective ban on new data centre applications in Dublin until 2028, though 21 new data centres are planned for locations outside of the capital. A letter from the Commission for Regulation of Utilities (CRU) to the Oireachtas environment committee last week confirmed the shift in location for new facilities, with the majority situated as close to Dublin as possible, despite being outside the city itself.
Government reforms, including the Accelerating Infrastructure Report and Action Plan and the Planning Reform Bill, aim to create a clearer and faster approach to infrastructure development. Although, Digital Infrastructure Ireland Chairperson Maurice Mortell cautioned that these reforms will be ineffective unless agencies like the CRU, EPA, planning authorities, EirGrid, and ESB Networks operate in greater alignment. Currently, these bodies “still operate too much in silos,” resulting in delays and uncertainty.
Data centres consumed 6,969 GWh of electricity in 2024, a 10 percent year-on-year increase, outpacing growth rates in peer countries. Overall electricity demand is expected to grow by 45 percent between 2023 and 2034, with data centres and AI infrastructure identified as the primary drivers of this increase.
In January 2026, Ireland unveiled strict new rules for data centre power use, reflecting the growing concern over grid stability. EirGrid has not yet commented on the anticipated impact of these new regulations.
