Solar Panels for Data Centres

Data Centres consume a huge amount of electricity, so much so that they make up a significant portion of Ireland’s overall electricity consumption.

There are more than 80 data centres operating in Ireland, with more under construction or with planning approval in place.

Data centres used 21% of all electricity consumed in Ireland in 2023 according to CSO figures, up from just 5% in 2015. This is more than the 18% used by all urban households, and closing in on the 28% of electricity consumed by all households in Ireland.

That portion is expected to increase further, with Eirgrid estimating that it could reach 28% by 2031.

That places significant strain on the electricity grid in Ireland, with the possibility of blackouts affecting parts of the country closest to data centres when demand outstrips the supply of electricity.

Installing solar panels on or near data centres can help them to generate at least some of their own electricity, and meet a number of goals.

Using renewable energy for data centres will help to reduce their carbon footprint and their environmental impact in Ireland. In 2022 electricity generation was responsible for 10.07 million tonnes of CO2, and data centres consumed 18% of all electricity in the same year.

Electricity is expensive in Ireland right now, and with the amount of electricity being used by data centres, this is a significant operational cost. Anything that reduces electricity consumption from the grid can help data centre operators to save money.

Data centres are likely to receive significant opposition from local communities at the planning stage, which can slow or outright block them from progressing. Showing communities that the electricity demand from data centres is being mitigated with solar power can help with their community image.

All of the operations in data centres require electricity, and are extremely energy intensive, meaning that solar power can play a huge role in their operations.

Data centres tend to be large, flat-roofed buildings which are ordinarily great for rooftop solar panels, but this may vary depending on the facility. 

Data centres require a lot of cooling to deal with the heat created by server farms. This means that the rooftops of data centres are often covered with ventilation units taking up much of the space.

Data centres can also be co-located close to ground-mounted solar PV installations to facilitate the use of renewable energy. 

Amazon Web Services (AWS) is one of the first large tech companies to announce their intention to locate data centres in the midlands close to the planned Bord na Móna Eco Energy Park in Co. Offaly to make direct use of solar and wind energy.

Due to the amount of electricity required by data centres, there is no solar PV system which would be too large for their needs.

Of the 82 data centres operating in Ireland in mid-2023, an analysis by the company Bitpower found that 25 were small data centres, with an IT Load Capacity of 0 – 5MW, 30 were medium data centres of 5 – 15MW in scope, and 27 are large data centres with an IT Load Capacity of >15MW.

The largest data centre in Ireland is the Facebook centre in Clonee, a 150,000m² premises with a demand of 215MW.

A 1MW solar PV power plant is more likely to be a ground-mounted system, due to the space requirements, and would likely take up 4 – 5 acres of space.

The high electricity demand of data centres, and their design means that it makes more sense to locate close to large scale ground mounted solar farms rather than relying solely on rooftop solar panels.

Electricity is the main operating cost of data centres once they are up and running, and therefore anything which can reduce their electricity consumption has the potential to save them significant amounts of money.

The exact savings will depend on the size of the solar PV power station operating for the data centre.

Estimates assume south-facing solar panels with a 30° inclination. Savings based on Electric Ireland 35.83c per kWh 24-hr rate.

Another way for data centres to save money on electricity is by entering into a Power Purchase Agreement with an energy supplier. This involves the customer agreeing to buy renewable energy at an agreed price for a fixed period of time, usually 5 to 20 years.

The cost of having commercial solar panels installed on or near data centres will depend on factors such as whether they are roof or ground-mounted, the quality of the equipment used, ease of access, and the size of the solar PV system.

Commercial solar panels typically cost between €850 – €2,000 per kWp, with prices varying depending on the project and installation costs. 

As data centres can vary in size so drastically, the price of a solar power plant meant to help meet their electricity needs will be entirely case sensitive.

The main source of grant funding for data centres to install solar panels comes from the SEAI, which offers commercial solar panel grants of up to €162,600. The value of the grant is dependent on the size of the solar PV system.

A 150kWp – 220kWp solar PV installation could receive €32,600 to €45,600, while a larger 500kWp would be eligible for a grant of €87,600.

Data centres are also specifically mentioned in the guidelines for the EXEED Grant Scheme, which offers up to €3 million in funding for businesses to ensure energy efficient designs of new buildings, or overhauls of existing premises.

Get matched with a commercial solar installers based on your installation size and complexity

As data centres run 24/7, and any private solar PV installation on the data centre will likely on make up a small part of its electricity needs, there is not likely to be any surplus electricity from solar panels.

Other businesses might be able to sell surplus power from times of lower demand back to the grid through the Microgeneration Support Scheme or the Small-Scale Renewable Electricity Support Scheme.

Contact us to learn about how solar power can help your business to save more and become more sustainable today. 

To learn more about solar energy for your business, speak to Energy Efficiency today! Ireland’s leading experts in solar energy. Speak to a member of our team and find out how much you could save on energy bills.