Echelon Data Centres challenges rejected expansion application
Written by Nicole Cappella Wed 27 Nov 2024
Echelon Data Centres has filed a comprehensive appeal to An Bord Pleanála contesting the decision of the South Dublin County Council (SDCC) to block the expansion of its Clondalkin facility.
This dispute highlights the challenges experienced by data centre owners/operators in Ireland amidst growing scrutiny over the stresses that data centre services put on the local energy grid.
Echelon had applied to the Council for permission to extend the existing ICT Facility Four, growing the site from its current 1,976 sqm to 15,744 sqm. This is a significant expansion, which would require new equipment halls, mechanical and electrical infrastructure, loading bays, maintenance areas, and offices.
The SDCC provided three reasons for refusal. First, they said the local grid could not support the increased energy demand of the larger facility. Second, they noted the lack of on-site renewable energy for sustainability requirements. Finally, the SDCC pointed out a lack of clarity around power purchase agreements (PPAs), which are needed to prove the intention to source renewable energy directly from producers.
Without on-site renewable power generation and/or PPAs, the facility would be dependent on the local grid to meet drastically increased energy requirements for the expanded data centre.
Echelon’s Counterarguments
Echelon argued in its appeal that the SDCC had erred. The company said that it is unreasonable to expect a commercial entity to finalise a PPA before securing land-use planning permission. Signing a binding PPA before permission is granted would require the company to commit to a third-party agreement without knowing for certain that the project would proceed.
“It could not be the interpretation of any reasonably informed, intelligent, and careful person that a PPA must be in place ahead of planning approval,” said Echelon in its appeal.
Additionally, the appeal to the decisions argued that even with a significant expansion to the existing facility, there would be no increase to demand on the electricity grid or uplift in the capacity. “The site,” it says, “is served by the existing substation, which is designed and sized to serve the overall campus, including the proposed development.”
Next Steps
An Bord Pleanála, Ireland’s independent planning appeals body, is expected to review the appeal early next year. A related point is a moratorium on new data centres in Ireland, which was implemented due to concerns over the stress that data centres place on the power grid. While the facility in question is an expansion rather than new construction, the Council is apparently focused on whether the expanded data centre will place additional demand on the local grid.
Written by Nicole Cappella Wed 27 Nov 2024