Echelon Receives Grid Connection for Data Centre Development in Wicklow - Construction Network Ireland - Construction Network Ireland

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Published in Construction on 06/09/2024

Echelon Receives Grid Connection for Data Centre Development in Wicklow

CNI Editor reports

Echelon Data Centres says that that a landmark decision to provide a grid connection for the company’s DUB20 data centre campus in Co Wicklow will ensure investment of €3.5bn and 1,300 jobs.

A spokesperson for Echelon described the decision as an important endorsement of responsible data centre development in Ireland and a major milestone for the company. Echelon will create 1,100 jobs during construction of the facilities in Arklow, and 200 permanent positions once the data centre is operational.

DUB20 is the first large-scale data centre to meet the Commission for the Regulation of Utilities’ (CRU) 2021 criteria for data centre connections. Onsite energy centres at the facility will have the capacity to provide security of supply services to EirGrid, Ireland’s Transmission System Operator (TSO), when renewable generation output drops below grid demand.

The grid connection will allow Echelon to begin work on a 220kV substation at the site that will allow access to the grid for renewable energy generated off the coast of Wicklow in the future. Echelon is also investing in solar, battery energy storage systems, and renewable fuels to replace fossil fuel consumed by the data centre.

Echelon Head of Energy Systems Cormac Nevin said: “DUB20 is a model for the future – and EirGrid’s decision to provide a grid connection for the facility will ensure investment of €3.5bn 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. It is also a strong statement that Ireland takes its climate responsibilities seriously but is open for business to the data centre sector and the jobs and inward investment that comes with it.”

Earlier this year, Echelon announced that Starwood Capital Group had invested approximately €850m to become a 50% shareholder in the company and provide material capital for its continued growth. The transaction also included a new €900m debt facility provided by Morgan Stanley and United Overseas Bank. Echelon now intends to proceed to the construction phase at DUB20. 

Cormac Nevin added: “This project will ensure investment of €3.5bn and create 1,300 jobs. 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. Everyone at Echelon is now looking forward to building Ireland’s greenest large-scale data centre.”

Wicklow-based Senator Pat Casey said: “This landmark decision from EirGrid is great news for Wicklow’s emerging digital economy. Echelon will now be able to rejuvenate the IFI site in Arklow with a multi-billion-euro investment that will create sustainable jobs and build a world-class data centre and digital technology campus in Arklow that will be powered by sustainable energy.”