The proposed Kildare data centre is shaping up to be one of Ireland’s most closely watched technology and infrastructure projects. A new disclosure that a US company has the option to buy the planned Naas facility has added another layer of debate around ownership, energy use, planning transparency and the future of large-scale digital infrastructure in Ireland.
The project, led by Irish developer Herbata Ltd, is valued at about €3 billion and would be located near the M7 in Naas, Co Kildare. While the scheme already faced local opposition, the revelation that US-owned Mission Critical has a pathway to acquire the business, site and planning permissions if final approval is granted has intensified public and political interest.
Kildare data centre project: what has been revealed?
At the centre of the latest discussion is an option agreement involving Mission Critical, the Irish subsidiary of US parent company E2 Companies. Regulatory filings in the United States indicate that the company can acquire Herbata within six months of planning permission being secured, including the site and associated permissions.
The arrangement is not entirely new. Mission Critical is understood to have backed the project financially since 2024 and has already provided €5 million in funding. Company records also identify it as one of Herbata’s creditors, underlining that the relationship goes beyond a simple technology supply agreement.
Herbata chief executive Gerry Prendergast has said the deal is primarily linked to energy technology and investment protection, rather than confirming any definite sale. He argues that E2’s role is focused on power management systems designed to help the proposed facility manage electricity intake and output more efficiently.
Why the Kildare data centre matters for Ireland’s tech sector
The Kildare data centre is significant because it reflects broader trends in Ireland’s technology economy. Ireland remains a major hub for cloud infrastructure, hyperscale computing and digital services, making new data centre developments strategically important for investment and connectivity.
However, these projects increasingly sit at the intersection of several national concerns:
- Energy demand: Data centres are large electricity users and can place pressure on grid capacity.
- Renewable targets: New projects are expected to demonstrate credible access to clean energy.
- Planning scrutiny: Communities want clearer visibility on long-term ownership and operational impacts.
- Economic value: Supporters argue such projects can attract inward investment and strengthen Ireland’s digital infrastructure.
In this case, Herbata has said the proposed Kildare data centre would be required to source 80 per cent of its electricity from renewable energy, maintain backup generation capacity and be capable of supplying electricity back to the national grid when necessary.
Local opposition and planning concerns
The project is still subject to planning appeals, with An Coimisiún Pleanála considering challenges to Kildare County Council’s earlier decision to grant permission. That means the Kildare data centre has not yet cleared its final regulatory hurdle.
Opponents have raised concerns not only about the environmental footprint of another major data centre, but also about whether the public has a full picture of who may ultimately own and operate the site. Critics argue that local communities should know whether a future buyer could differ substantially from the entity that went through the planning process.
There are also wider concerns about the pace of data centre growth in Ireland. Some campaigners have called for a moratorium on new projects until the Government addresses perceived policy gaps around electricity usage, climate impact and strategic oversight.
Key questions being asked
- Who will be the eventual owner of the development if approval is granted?
- How will the project affect local energy infrastructure and climate goals?
- Will the planning process adequately reflect future changes in control or use?
- Could a larger hyperscaler eventually take over the scheme?
The funding challenge behind the Kildare data centre
One of the more revealing elements of the story is the acknowledgement that Herbata may not be able to complete the entire project alone. Prendergast has indicated that while the company is advancing the development, a project of this scale would likely require support from a major specialist operator, often referred to as a hyperscaler.
That point highlights the commercial reality of large digital infrastructure projects. Building a Kildare data centre of this size is not simply a planning exercise; it also requires deep capital resources, sophisticated power management and long-term operational expertise.
Even if Mission Critical never exercises its option, the existence of such a clause signals that ownership structures in major data centre developments can evolve significantly between initial planning and eventual construction.
What happens next?
The immediate next step is the planning decision. If approval is upheld, Mission Critical would have a six-month window in which it could exercise its option to buy Herbata, the site and its permissions. If not, the project could face delays, redesign or a complete rethink.
For the wider market, the Kildare data centre case is likely to become a reference point for future projects in Ireland. It raises important questions about transparency, financing, sustainability and who ultimately benefits from major digital infrastructure investments.
As Ireland continues balancing its reputation as a technology hub with its climate and energy commitments, the Kildare data centre debate will remain highly relevant. The clearest takeaway is that data centre projects are no longer judged on construction plans alone; ownership, power strategy and public trust now matter just as much.
