/DUBLIN, IRELAND, July 23, 2025, 10:30 IST, RENEWABLE MARKET WATCH™/ The Irish government has approved a significant €3.5 billion investment in the country’s electricity grid infrastructure, covering the period from 2026 to 2030. This is the largest single investment in Ireland’s electricity network in its history. This transformative initiative will enhance the country’s energy security, support economic growth, and accelerate the transition to renewable energy.
A total of €1.5 billion will be invested in ESB Networks and €2 billion in EirGrid. This funding will enable both companies to enhance their capital investments, allowing for the expansion of our onshore and offshore electricity transmission and distribution networks. This historic commitment will safeguard Ireland’s electricity system and ensure that it can meet the increasing demands of our economy, households, and climate targets. Transitioning to a renewable energy system requires significant investment, but it is essential for providing secure, sustainable, and affordable energy for future generations.
The upgraded electricity grid will play a vital role in fulfilling essential commitments outlined in the Programme for Government, such as achieving 80% renewable electricity by 2030. To meet this goal, Ireland will need to construct 9 GW of onshore wind, 8 GW of solar power, and 5 GW of offshore wind by 2030. These targets can only be reached with a state-of-the-art electricity network. The investment signifies the essential spending in various European countries to improve renewable energy connections, interconnect with neighbouring nations, and create reliable networks that support the rising electrification of the energy system.
The investment is part of the ongoing Price Review 6 (PR6) process, with a final decision from the Commission for Regulation of Utilities (CRU) expected by the end of the year. Ireland is a significant hub for data centres in Europe, attracting major international companies such as Amazon, Meta, Microsoft, and Google. The key factors driving the data centre industry in the country include low corporate tax rates, a central geographical location, a suitable climate, and strong data protection policies. Currently, there are more than 95 data centres operating in Ireland, many of which are located in Dublin, with numerous others either under construction or in the planning phase.
From 2015 to 2024, the percentage of total metered electricity consumption used by data centres in Ireland increased from 5% to 22% and is projected to reach 32% by 2030. Electricity consumption by data centres rose by 20% between 2022 and 2023. Solar-generated electricity could play a crucial role in supporting the rapidly growing electricity demand of data centres in Ireland, which surged from 3,028 GWh in 2020 to 6,969 GWh in 2024.
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