Keppel DC REIT Ireland: A Sustainable Data Centre Future
Data centre operators are facing increasing pressure to balance operational reliability with environmental responsibility.
This is being actualised across The Republic of Ireland, which has quickly become a hive of data centre activity. The country’s Commission for Regulation of Utilities (CRU) now requires data centre operators to implement on-site power generation or energy storage systems.
Likewise, EirGrid, Ireland's state-owned electric power transmission operator, has mandated that new data centres demonstrate their ability to support grid stability.
Such requirements have emerged against the backdrop of Ireland's Climate Action Plan, which targets an 80% reduction in greenhouse gas emissions from the electricity sector by 2030.
Within this context, Keppel DC REIT Ireland has implemented renewable energy agreements covering 92% of its Irish operations' power demand, marking a shift in how colocation providers approach sustainability in Ireland.
Gary Watson, Country Manager for Keppel DC REIT Ireland, has witnessed the sector's evolution from basic computer rooms to today's complex facilities.
“Data centres are critical to the digital world we operate in,” he says. “We don't create the data – we provide the solutions and the infrastructure behind it.”
Integrating renewable energy
Keppel DC REIT Ireland’s approach to data centre innovation combines power purchase agreements (PPAs), on-site generation and energy storage systems to address both regulatory requirements and the REIT’s environmental objectives.
In the past 12 months alone, Keppel DC REIT Ireland has executed three virtual power purchase agreements (VPPAs) in Ireland. These include a recommissioned wind farm in Ballybane, County Cork, which has generated 67 gigawatt-hours (GWh) of renewable energy, alongside two solar farms in Goresbridge in County Kilkenny and Gorey in County Wexford, which have contributed an additional 11GWh.
“We are progressing with our fourth agreement, which will help us match our energy consumption with renewable sources on an hourly basis by mid 2025,” Gary notes. “This would be ahead of industry targets, which are set for 2030.
“We're currently working on two projects for 4MW battery energy storage as well, one on each of the sites. We have successfully introduced renewable energy into our Irish operations, but more importantly we are ensuring the renewable energy is generated on the same grid that it draws from.”
He adds: “We don't buy guarantees of origin from other EU countries, which is permitted right now. It has to be on the Irish grid.”
Utilising advanced cooling systems
In response to increasing computational demands, including AI workloads, Keppel DC REIT Ireland has implemented more efficient cooling technologies to reduce energy consumption.
The modernisation programme at Keppel DC REIT Ireland's City West facility, which began in 2018, represents the company's approach to infrastructure upgrades. Traditional uninterruptible power supply (UPS) systems were replaced with modular units that scale with customer demand.
These changes formed part of a two-year upgrade to the facility's cooling and electrical infrastructure, demonstrating a shift toward more adaptable data centre designs.
"We looked at how we can become more efficient on the cooling side, how we work with our customers and what projects we can put in place to drive that," Gary explains. "We have significantly reduced water usage and have driven electricity usage down with the more efficient cooling technology."
Keppel DC REIT’s monitoring systems track the correlation between energy consumption and cooling performance. Staff also receive training on specific aspects of cooling system operation, including the energy implications of components such as rogue pumps.
This approach enables rapid response to system faults while maintaining optimal efficiency.
"When we look at sustainability projects, we consider all aspects including the cost and return on investment," Watson explains. "I also insist the team calculate the return on carbon. We have to balance financial and environmental impact."
Ensuring grid stability
The growing demand for data processing has intensified focus on environmental performance.
Gary shares: “There was and continues to be concerns that suggesting Ireland would have brownouts and blackouts due to too many data centres. It never happened. However, we're looking at how we can put battery energy storage in place so during peak times we can help the grid while maintaining 24/7 availability.”
Heat reuse is perhaps a solution to support the local communities where data centres are present. However, the strategy is presenting a challenge in Ireland’s data centre sector, which Gary explains is a missed opportunity as there are very limited district heating networks for taking the waste heat.
“Building a heating network in all new builds whether commercial or large scale residential projects can be included as a requirement for granting permits,” Gary explains. “It's acceptable to require district heating capabilities in planning permissions for data centres, but a supporting network is still needed to take out the waste heat.”
Keppel DC REIT Ireland has signed a non-disclosure agreement with a potential partner to explore district heating solutions in Ireland.
Gary advocates for a coordinated approach: “You've got to drive the demand first. We actually invest in the grid. We build our substations and then hand them back to the grid.
“It should be no different with district heating. We want to help. We are the facilitator and ensure that we've consolidated everything into a single place to make it more efficient. There should be more joined up thinking.”
A sustainable pledge
In response to evolving EU regulations and data centres being classified as critical national infrastructure in the UK, Keppel DC REIT Ireland is developing automated reporting systems to ensure targets are met and informed decisions can be made.
Keppel DC REIT Ireland has already reduced its fossil fuel consumption by optimising generator testing schedules and exploring the use of hydrotreated vegetable oil (HVO) as an alternative fuel. Work is now underway to evaluate the potential elimination of diesel generators through advanced battery technology.
A significant part of this transition is making its supply chains more sustainable, with Keppel DC REIT Ireland eager to reduce greenhouse gas emissions.
“Can we deliver renewable energy to our customers in their own facilities? Keppel, as a group, is capable of doing this,” Gary says.
“We're looking at a variety of solutions. Can we get rid of generators altogether? Where are we buying our batteries from? What does that look like?”
Keppel DC REIT Ireland has worked closely with leading car manufacturer Mercedes to use an electric van to distribute trees to schools, community centres and hospices. The company is also committed to environmental initiatives like DCs for Bees, which distributes pollinator-friendly plants to schools and community groups.
“Since then, we've gone on to distribute orchards around local communities, schools, residential associations, our own data centres and planted hedge rows that are good for pollinators,” Gary shares. “We're engaging with schools on other projects and looking at how we can actually assist certain schools with products and tools that can help the students.
“We’ve also set up bottle deposit schemes at our data centres where bottles are deposited into bottle banks on site and the money goes to charity at Christmas. So everybody's making a difference. We're trying our best to be engaged. It can be challenging, but we are firmly committed to our sustainability goals.
“We're committed to the environment and the local communities that we serve in Ireland.”
Investing in innovative infrastructure
At its core, Keppel DC REIT Ireland remains eager to improve its sustainability efforts. For instance, it has recently partnered with facilities management company Datalec to maintain its operations across Ireland.
“They take ownership and accountability,” Gary says. “They're open and transparent, which is key for us in the running of any critical facility.
“They are very much client driven. They take ownership and accountability and responsibility for what they do and have recently taken on our facilities management last year in a hybrid partnership. So we are working as one team.”
Metlen, part of Mytilineos Holdings, is also supporting Keppel DC REIT Ireland. The Greek solar company has been instrumental in building two solar farms with the data centre operator in Ireland.
“We finalised two contracts last year, which went into operation in Q4 of 2024,” Gary explains. “It’s been a great partnership and they are helping us achieve our sustainability goals. We're hoping to do a lot more with them moving forward.
“It has been key for us to find real partners that are transparent and open. Their global reach on projects, combined with an understanding of what’s required within a data centre, has been beneficial for both us and our clients.”
All things considered, Keppel DC REIT Ireland’s contribution is to support the local communities within Ireland, whilst also delivering efficient digital infrastructure while supporting the Irish grid.
“Just because it's not easy doesn't mean it can't be done,” Gary says. “We are trying to maintain sustainable facilities while meeting the demand of consumers. “A lot of people don't think about where the data goes – they don't see the 24/7 operations behind the scenes or the projects being delivered to be better grid citizens.
“Our mantra is less talking, more doing.”
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