€20bn data centre investment drives launch of new supplier alliance
Data centres used 22% of Ireland’s electricity in 2024 as industry group calls for islanded utility parks to support future growth
24 February 2026 | editor@irishrealestate.news
A new trade association has been established to represent Irish companies operating across the data centre supply chain, as the sector faces tighter energy regulation and renewed policy scrutiny.
The Irish Data Centre Supplier Alliance (IDCSA) will represent firms involved in planning, design, construction, mechanical and electrical engineering, energy management, automation and technical services linked to data centre development. The alliance said it aims to advocate for its members, demonstrate the sector’s economic contribution and engage with Government to ensure policy supports future investment.
Tom Parlon, former Director General of the Construction Industry Federation and a former Minister of State at the Department of Finance, has been appointed as the organisation’s first chair.
The IDCSA states that data centre development has contributed more than €20bn in direct and indirect investment over the past 15 years. The sector directly employs approximately 1,800 people and supports thousands of additional roles across the domestic supply chain.
The launch comes amid significant policy shifts. In December, the Commission for the Regulation of Utilities confirmed that new data centres may proceed where at least 80% of their annual electricity demand is met by new renewable energy sources. The move followed the effective lifting of restrictions on new grid connections.
Data centres accounted for 22% of Ireland’s total electricity consumption in 2024, up from 5% in 2015. Demand is projected to rise to almost one-third of national electricity usage by 2030, intensifying debate around grid capacity, decarbonisation and infrastructure planning.
Last month, Government published its Large Energy Action Plan, aimed at facilitating the development of energy-intensive industries, including data centres, within defined system limits.
In response to ongoing energy constraints, the IDCSA is calling for the development of dedicated “islanded utility” business parks in strategic locations. These would comprise large-scale campuses with on-site energy and water infrastructure designed to accommodate next-generation foreign direct investment while reducing pressure on the national grid.
The alliance said such an approach would replicate elements of the strategic planning model seen at Grange Castle Business Park, which has attracted significant digital infrastructure investment over the past two decades and positioned Ireland as a European data centre hub.
