New Large Energy User / Data Centre Grid Connection Policy

The Commission for Regulation of Utilities recently published its final Large Energy User (LEU) connection policy, establishing a pathway for new large electricity demand connections, including data centres, to connect to the electricity grid.

Over recent years, new data centre growth in Ireland stalled due to an effective moratorium on new connection offers. Ireland’s data centre vacancy rate stands at just 1.3%, with 94% of capacity currently "under construction" already under lease, according to a Knight Frank report. Against this backdrop, the announcement is long overdue, with demand for data centre capacity both high and forecast to increase significantly.

While this provides some certainty to data centre developers, and ultimately, their customers who require data centre capacity, there are material conditions data centre projects will need to satisfy in order to secure their grid connection.

Our Data Centres team has prepared downloadable analysis which explores the scope and implications of the policy in detail.

What we cover

• The Irish energy regulator, the Commission for Regulation of Utilities (CRU), has published the final large energy user connection policy, providing clarity to data centre projects and their pathway to a grid connection.
• The CRU published a draft decision earlier in 2025. Its final decision introduces some interesting and welcome changes, including the recognition of different categories of data centre based on their capacity sizing.
• The key assessment criteria relate to: the provision of on-site or proximate generation, 80% renewable electricity procurement, locational grid network assessment, and ongoing reporting.
• The LEU policy acknowledges significant levels of data centre capacity demand over the medium term – to the tune of 5.8GW.
• A state-led approach is being explored and is the likely evolution of the LEU policy. This may focus on locating larger facilities closer to scaled generation assets by delineating certain development zones, much like the approach in the UK.

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For more information and expert advice, please contact a member of our Data Centres or Energy teams.

The content of this update is provided for information purposes only and does not constitute legal or other advice.