Operated through Enel X, this turns the data centre into a distributed energy asset. The initiative also incorporates hydrogen fuel cells, liquid immersion cooling, and high-density cold plate solutions.
Project overview
Lead: Microsoft
Country: Ireland
Sector: DC + Grid (Grid-interactive UPS, liquid immersion cooling and hydrogen fuel cells)
Stage: Post-FID / operational
Financing: Ancillary services revenue (FFR market participation)
Success factors & impact
01. Price visibility
- EirGrid’s DS3 ancillary services market provides clear revenue for sub-150ms grid response
- 3x premium payment embeds long-term demand signal for grid-interactive data centre assets
02. Infrastructure readiness
- Existing UPS batteries repurposed as a grid-interactive FFR asset, near-zero additional CapEx
- Backup functionality fully preserved while enabling additional ancillary services revenue stream
03. Flexible systems & economics
- Market access via Enel X removes need for a direct TSO relationship, lowering entry barrier
- Ancillary revenue offsets operational costs with no major hardware investment
04. Risk sharing & capital models
- Market access and certification frameworks enable participation in regulated FFR markets
- EirGrid certification frameworks enable UPS participation in ancillary services markets
System-level value
- Enhances grid frequency stability and reduces reinforcement needs during peak stress events
- Optimises DC infrastructure via risk sharing between the data centre operator, market aggregator and grid operator
- As the first DC UPS in the FFR market globally, de-risks broader market learning for deploying these assets for ancillary services
Key metrics
- ~2 MtCO₂/year avoided (Baringa estimate)
- 3x payment for <150ms response time
Notes
Replicability depends on ancillary services market maturity, technical requirements and local regulatory frameworks.
UPS: Uninterruptible Power Supply
Source: Microsoft