Storm in a DCCOPP: Ireland’s New Data Centre Connection Framework

EirGrid – the operator of Ireland’s electricity transmission system – has recently published Version 3 of its Data Centre Connection Offer Process and Policy (“DCCOPP”).  This is the rule-set governing the allocation of electricity demand-side connections to applicants seeking a Maximum Import Capacity (MIC) of 1 MVA or greater, for the purpose of powering a new data centre. DCCOPP implements the Large Energy Users Connection Policy (the “LEU Policy”) published on 12 December 2025 by the Commission for Regulation of Utilities, and applies to relevant applications received on or after that date.

Key Takeaways

Under the DCCOPP, an applicant seeking a data centre connection must demonstrate, in broad terms, that:

  1. it has access to an auto producer unit or new dispatchable onsite or proximate generation and/or storage capacity (“Nominated Generation”) that is sufficient, after de-rating is taken into account, to match the site’s MIC;
  2. it has a “credible pathway” to meeting at least 80% of its annual electricity demand with new renewable electricity generated in Ireland (“Nominated Renewable Generation”), over a six-year glide path that starts when the data centre is energised;
  3. the associated Nominated Generation and Nominated Renewable Generation either (i) have an existing electricity connection agreement, (ii) have a live connection offer, (iii) have an application for connection that is “in train”, or (iv) are subsequently submitted into EirGrid’s Enduring Policy – Generation and System Services (“ECP-GSS”)  connection offer process, as applicable; and
  4. prior to the mandatory pre-application meeting with EirGrid, the applicant holds a validated planning application for the data centre facility, and that full planning permission, in respect of which the judicial review period has expired, is available before any connection offer is accepted.

Background: The LEU Policy

In response to significant demand constraint issues on the Irish grid, the LEU Policy established a framework for new large demand connection applications (the majority of which currently relate to data centres). The LEU Policy applies to all data centres that request a connection to the electricity network, following the publication of the policy.

The LEU Policy required that EirGrid and ESB Networks, as System Operators, publish a clear engagement and connection process for data centre applicants.

The DCCOPP: The Specifics

DCCOPP is published by EirGrid in furtherance of its obligations under the LEU Policy.  It has been published notwithstanding that the LEU Policy has been challenged and that judicial review proceedings are ongoing at present. EirGrid states in the DCCOPP that the rules are subject to change depending on the outcome of those proceedings, and that applicants proceed in the interim at their own risk.

Processing timelines for connection applications made under DCCOPP will depend on the status of the associated generation. Where the Nominated Generation and Nominated Renewables have already received connection offers, EirGrid has indicated a standard timeline of approximately 7.5 calendar months from receipt of a complete application and fee to issuance of a resulting connection offer; where the associated generation has only just applied into ECP-GSS, the timeline may extend to up to 18 calendar months.

The key elements of the DCCOPP are now summarised below – although prospective applicants should, of course, review the DCCOPP in full:

1. Application Assessment Criteria

General Eligibility Rules

Nominated Generation must be genuinely new capacity. It cannot already hold a Capacity Market contract or “rely on existing system capacity”.

Data Centres with 1 MVA ≤ MIC < 10 MVA

Applicants must install an autoproducer unit (on-site generator) with de-rated capacity covering 100% of MIC. The autoproducer must participate in the Single Electricity Market (SEM). Renewable generation meeting up to 80% of annual demand can (on a de-rated basis) offset the autoproducer requirement.

Data Centres with MIC ≥ 10 MVA

Applicants must provide new dispatchable generation and/or storage, separately connected and metered, with de-rated capacity covering 100% of MIC. This must participate in the SEM as a standalone market unit – noting that this means that dispatch of the unit will be the responsibility of EirGrid rather than the data centre. The data centre cannot become operational until the generation is delivered. Renewable electricity (up to 80% of annual demand) may be credited on a de-rated basis against dispatchable generation requirements.

2. Renewable Electricity Requirements

Minimum Renewable Share

At least 80% of the data centre’s annual electricity demand must be matched by renewable generation located in Ireland.

Eligible Generation

Only new or additional renewable generation qualifies. Existing renewables and projects receiving REFIT, RESS, ORESS or other support cannot be used (unless the support has ended and the project has been fully repowered).

Glide Path

A six-year transition period applies from energisation. If the 80% requirement is not met at the end of this period, EirGrid may reduce MIC to reflect the level that has been met, or terminate the Connection Agreement.
3. Requirements for Dispatchable Onsite or Proximate Generation
Location Generation must be onsite (same network node) or proximate (on the same local network between two meshed nodes).

Shared Generation

Multiple data centres may share a proximate generator if de-rated capacity meets combined MIC and all parties confirm allocation.
Timing Data centre cannot energise or ramp up demand until associated generation/storage is delivered. Generation must ramp in step with MIC.
Capacity Sizing De-rated capacity must meet 100% of MIC, sized using prevailing CRM de-rating factors.
Connection and Market Rules Generation/storage must be separately connected and metered, and participate in the SEM as a standalone market unit.
4. Planning Permission Requirements
Data Centre (demand side) Validated planning application required before mandatory pre-application meeting with EirGrid. Full planning permission (free of judicial review) required before accepting a connection offer.
Nominated Generation Full planning permission required before generator enters ECP-GSS connection process.
Nominated Renewable Generation Planning application must be acknowledged as complete at ECP-GSS entry. Full permission (free of judicial review) required before accepting connection offer under DCCOPP.
5. Capacity Remuneration Mechanism (CRM) Requirements
Participation Obligation Dispatchable generation/storage must participate in the CRM per SEM rules. Only one-year CRM contracts are permitted.
Offer quantity cap  CRM offer quantity (de-rated) capped at contracted MIC for each delivery year. If MIC is ramping, offer must reflect ramped MIC.

 

The DCCOPP provides a “way forward” for the facilitation of new data centre connections in Ireland.  However, as with any new and complex policy framework, there are likely to be nuances and practical considerations that will need to be worked through as implementation proceeds.

How McCann FitzGerald Can Assist

McCann FitzGerald’s Infrastructure, Energy and Natural Resources team advises Irish and international clients on all transactional and regulatory aspects of the development, connection and operation of data centre and electricity generation assets. If you have any queries in respect of this article or how we can assist with your data centre projects, please contact one of the Key Contacts listed below.

This document has been prepared by McCann FitzGerald LLP for general guidance only and should not be regarded as a substitute for professional advice. Such advice should always be taken before acting on any of the matters discussed.

Key Contacts