Data centres will play a key role in making off shore wind projects in Ireland viable, a new report has claimed.
It is argued in the report that the delivery of OSW will rely on long-term corporate power purchase agreements (CPPAs) being put in place with tech firms.
The report by UK consultancy firm Baringa but commissioned by Cloud Infrastructure Ireland, suggests those CPPAs will de-risk the investment underpinning OSW projects and provide revenue certainty.
The CII was set up in 2021 to focus on the infrastructure policy issues that affect cloud providers.
Their report claims the CPPAs will reduce costs for Irish bill-payers by directing private capital to help fund Ireland’s decarbonisation.
It has also been suggested that if the Government’s current OSW targets are met, the country will likely produce significant amounts of unused or surplus power.
Supply from intermittent renewables in 2040 could be up to 55% greater than demand.
The CII report proposes that the excess power could be put to effective use in data centres.
"Data centres represent an ideal market for OSW-produced electricity, given the stable and consistent nature of their demand," the report notes.
The report also recommends the Government invest in the national grid and increase future demand for OSW.
“The critical importance of data centres to the delivery of Irish offshore wind projects and the achievement of Ireland’s renewable energy goals has, until now, been little understood," said Director of CII, Michael McCarthy.
"As Baringa make clear, many of the planned offshore wind projects in Irish waters will be dependent on corporate power purchase agreements in order to be built.
"Data centre operators, with their strong balance sheets and track records in the purchase of renewable energy, are uniquely positioned to sign those corporate power purchase agreements with offshore wind developers.
"What’s more, data centres will also be the ideal market – given their demand profile and the decarbonisation their services enable across society – for the huge amounts of offshore wind that Ireland intends to produce in future.
“Ireland is still, of course, a number of years away from producing new offshore wind.

"Steps therefore need to be taken in the meantime to ensure the viability of the country’s data centre industry, given how integral it is to offshore wind delivery in Ireland.
"CII therefore welcomes Baringa’s recommendations that the Government deliver both grid investment and certainty on grid connections, as well as providing a pathway for the sustainable growth of the industry.”