Keppel DC signs 10-year agreement with Greencoat Renewables to power Dublin data centres

Greencoat's Tullahennel wind farm in Co Kerry

Caoimhe Gordon

Keppel DC Reit has signed a power purchase agreement (PPA) with Greencoat Renewables.

A PPA is a long-term electricity supply agreement between a customer and a power producer.

The renewable energy agreement, which is set to last 10 years, will see Greencoat Renewables provide two data centres with up to 67 GWh (gigawatt hour) of renewable energy each year.

This energy will be generated at Greencoat Renewable’s wind farm, Ballybane Phase 1, which is located in Co. Cork. Keppel DC will purchase 100pc of the electricity generated.

The partnership forms part of Keppel DC’s strategy to decarbonise operations at its Dublin data centres. The new agreement will supply 81pc of the current power needed over the 10 years of the deal, according to Keppel DC.

Both facilities owned by Keppel DC are also aiming to be powered by 100pc Irish renewable energy by 2030.

“The partnership evidences the significant opportunity for Greencoat Renewables, as the largest operator of wind assets in Ireland, to provide renewable electricity to the growing Irish data centre market,” Schroders Greencoat partner Paul O’Donnell said.

"We are ready to supply the cost-effective, clean power that will support the country’s wider economic growth, and the ambitions of our partners,” he added.

Keppel DC’s country manager Gary Watson added that the PPA is “transformational” for the colocation data centre provider.

A colocation data centre allows a number of enterprises to share a single data centre by renting space for servers and data storage

“[The agreement] will help us achieve our commitments to be Net Zero by 2030 in accordance with Ireland’s Climate Action Plan and our pledge to the Climate Neutral Data Centre Pact,” Mr Watson added.

A number of global companies also have major data centres here, with advances in artificial intelligence expected to create even more demand for such facilities.

However, data centres have faced criticism in recent years as they consume huge amounts of electricity. EirGrid, the semi-State company that manages Ireland’s electricity network, has predicted that data centres will account for almost 26pc of national demand by 2026.