Data centre company Echelon has been given the go ahead for a grid connection at its €500 million data centre campus in Co Wicklow, clearing the way for construction to begin. The campus in Arklow, Co Wicklow, will eventually lead to the creation of 200 permanent jobs. During its construction phase the project will employ 1,100 people.
The decision brings to a conclusion the lengthy engagement with EirGrid on the project. Echelon announced its plans for the site in 2019, but had expressed its frustration earlier this year over the slow pace of progress.
It is the first large scale development that has met the criteria for grid connection laid down by the Commission for the Regulation of Utilities in 2021 following a backlash against data centres and a squeeze in electricity supplies.
These criteria require consideration be given to the proposed centre’s location – for example, if it is in an area where supply is constrained – and also the ability of the data centre to reduce consumption when requested to do so when capacity on the grid is limited, such as through on-site generation or storage.
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The Dub20 campus is located on the site of the former Irish Fertiliser Industries (IFI) site near the Co Wicklow town, which Echelon has long argued should qualify it for a grid connection as it is not in an area of grid constraint.
The project will also have two on-site energy centres, one to power the data centre and the second to export power and support the national grid when renewable generation output drops below grid demand. It is also close to where SSE Renewables plans to build an offshore wind farm capable of producing 800MW.
Echelon also plans to build a 220kV substation on-site that will allow access to the grid for renewable energy generated off the coast of Wicklow, and is investing in solar, battery energy storage systems and renewable energy to offset the fossil fuels consumed by the data centre.
“Dub20 is a model for the future – and EirGrid’s decision to provide a grid connection for the facility will ensure investment of €3.5 billion in data centre and energy infrastructure in Co Wicklow. It is an endorsement of sustainable data centre development as it follows a pathway to net zero emissions and demonstrates the role of Government policy in achieving that,” said Echelon’s head of energy systems Cormac Nevin.
“It will support the development of renewable energy resources, it will provide support for the national grid to ensure security of supply, and it will help Ireland transition to a low-carbon economy. Dub20 will demonstrate what is possible when we co-locate critical infrastructure like data centres and renewable energy resources.”
Echelon was founded by businessman Niall Molloy, who is also managing director of property group Aldgate Developments. US investment firm Starwood Capital took a 50 per cent stake in Echelon earlier this year, following an investment of €850 million in the company. The deal included a €900 million debt facility provided by Morgan Stanley and United Overseas Bank, and provides what the company described as “material capital” for Echelon’s continued growth.
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