Leading data centre industry groups Host in Ireland and Digital Infrastructure Ireland are set to merge under the Digital Infrastructure Ireland banner.

The groups said that the move reflected both "the criticality of the industry and the need for urgent action by the Irish government to advance the sector in Ireland"

Minister for Public Expenditure, Infrastructure, Digitalisation and National Development Jack Chambers will give the keynote address at the Digital Infrastructure Ireland event next week.

It has been five years since what has been called a de facto moratorium on data centre development came into effect.

Despite that, the share of metered electricity consumed by data centres increased to 21% in 2023, more than all urban households (18%).

A growing number of large energy users have turned to corporate power purchase agreements with wind and solar farms to power their data centres, restricting the supply of renewable energy to the wider commercial and residential markets.

Garry Connolly, founder of Host in Ireland, said the data centre industry needs one powerful voice to champion the digital infrastructure industry.

"Ireland and the Irish digital infrastructure ecosystem have long been trusted global partners for designing, building, and supplying digital infrastructure," he said.

"The industry needs a collective voice to represent the diverse sectors and communities that drive this critical industry.

"While the ecosystem has soared in recent years, the industry here at home faces serious challenges, including energy constraints, sustainability, and regulatory uncertainty.”

The Commission for Regulation of Utilities (CRU) this week published a proposal for new data centres connecting to the grid to be required to provide their own energy generation onsite or locally, and for any surplus to be made available to the market.

“It’s time to try something new. The CRU consultation should initiate a collaborative effort, bringing together government, agencies, and industry leaders to plot a course for Ireland and this trillion dollar global industry," said Connolly. 

"Ireland's energy challenges demand immediate action from top public and private experts to address grid constraints, solutions, and investments—not just in the medium and long-term, but immediately, as there are too many opportunities in limbo. 

"Now more than ever, we must move beyond incremental steps and take giant leaps to embrace bold, forward-thinking policies. We need to build on Ireland’s 60+ year history with data by embracing a future that demands us to be creative, brave, and relentless."

Digital Infrastructure Ireland will establish a strategic advisory board composed of industry leaders and professional experts who it said would "play a crucial role in shaping the future of the organisation".

The board will be co-chaired by data centre industry veteran Maurice Mortell and Host in Ireland COO Michelle Wallace.

“The challenges we face as an industry in Ireland are getting serious and require a proactive and robust approach to advocacy and awareness. A lack of policy clarity is putting future investment at risk," said Mortell.

“The government must take an active role in enabling the next wave of cloud and AI-driven growth, or Ireland will be left behind as other markets seize these opportunities.

"Digital Infrastructure Ireland is committed to addressing these issues through collaboration, advocacy and proactive engagement with policymakers to ensure the industry can continue to thrive.”