This article marks the first in a series exploring Ireland’s infrastructure landscape. Over the coming months, G&T will examine the opportunities and challenges facing key sectors, from energy infrastructure and data centres to rail development and sustainability. But first, we take a high-level view of the state of play.
Infrastructure is the backbone of economic growth and social progress. Yet, Ireland faces a complex infrastructure paradox: significant investment commitments alongside persistent delivery challenges. While the latest Programme for Government – Securing Ireland’s Future[1] (January 2025) – outlines ambitious plans and increased funding, translating these into tangible improvements on the ground remains a significant hurdle. Planning bottlenecks, contractor capacity issues, cost overruns and regulatory uncertainty continue to be a concern. But these challenges must be overcome to meet Ireland’s long-term development goals and maintain competitiveness in a rapidly evolving global landscape.
Ireland's substantial infrastructure ambitions, while supported by a healthy fiscal position (bolstered by corporate tax revenue and a 7% budget surplus), cannot be realised solely through public funding. Private investment is essential to bridge the funding gap and deliver the scale of infrastructure required.
The Investment-Delivery Gap: Beyond Funding
On paper, Ireland’s infrastructure investment trajectory looks promising. The Government has committed to an early review of the National Development Plan (NDP) by mid-2025, alongside increased funding earmarked for critical sectors, such as transport, housing and utilities.[2] The creation of a dedicated Infrastructure Division within the newly renamed Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation signals a shift towards more centralised oversight.[3]
However, Ireland's ranking in global infrastructure indices[4] highlights a gap between investment, planning and delivery. There may be several interconnected factors contributing to this disparity:
- Planning inefficiencies – Delays in securing planning approvals, navigating complex locally mandated environmental regulations and handling legal challenges have slowed major projects and increased costs.[5] The Government’s plan to streamline statutory timelines for large-scale developments may help, but proactive engagement with stakeholders, improved communication and a more efficient planning process will also be required.
- Aligning local regulation with national investment goals - While local regulatory controls aim to address environmental and community concerns, they do not always align with economic growth for Ireland. For instance, at Dublin Airport they have created significant challenges for the Dublin Airport Authority in aligning airport capacity expansion with national investment objectives. Local controls have prevented development that would create more business and tourist travellers, driving increased investment and economic growth for Ireland.
- Contractor and Supply Chain capacity constraints – Ireland’s construction sector has struggled with skills shortages and the collapse of major contractors in recent years. The shortage of skilled professionals in the professional services sector—critical for managing, controlling, and assuring major programmes—further challenges outcome predictability and public confidence. This limited capacity affects project timelines and raises concerns about quality and cost control. Investing in skills development through schools, colleges, internships and academia, alongside fostering a more sustainable construction ecosystem and exploring innovative procurement models, can help mitigate these challenges and strengthen the sector’s long-term resilience.
- Regulatory uncertainty – Frequent changes in procurement rules, evolving sustainability requirements and the complexities of public-private partnership (PPP) frameworks create uncertainty and discourage private sector investment. A clear, stable and predictable regulatory framework is crucial for attracting investment and ensuring efficient project delivery.
- Data Centre Demand and Grid Capacity: The rapid growth of the data centre sector presents both opportunities and challenges. While attracting significant investment, data centres place immense pressure on Ireland's electricity grid. Grid connection delays, capacity constraints and concerns about the long-term sustainability of the current energy mix are critical issues that need to be addressed.
Transport and Energy: Priorities Under Pressure
In the transport sector, flagship projects like MetroLink in Dublin and regional rail expansion have faced delays and cost overruns. While the All-Island Strategic Rail Review provides a strategic vision, its success hinges on overcoming funding gaps and navigating the complex planning landscape.
In the energy sector, Ireland's commitment to renewable energy is welcomed. However, achieving ambitious targets for offshore wind and grid infrastructure expansion requires more than policy. Grid connection availability, public support for infrastructure development, and crucially, ensuring the right mix of energy sources, including managing the intermittency of renewables, will all be part of the solution. Growing energy demand, driven by factors including data centres, industrial decarbonisation and the rise of electric vehicles, necessitates careful management of energy policy to ensure a secure and sustainable energy future.
Rebuilding Confidence in Delivery
If Ireland is to close its infrastructure gap, a shift in project execution is needed. The Government’s latest strategy[6] outlines plans for a more coordinated approach, including:
- A new Infrastructure Division to improve project selection and prioritisation
- Reforms to procurement and planning approvals to reduce delays
- Greater private sector involvement to ease public funding constraints
However, these measures must translate into visible progress on the ground. While challenges such as contractor insolvencies and budget overruns have tested confidence in the past, they also present valuable lessons for building a more resilient and efficient infrastructure sector. By focusing on strong project management, financial oversight, attracting sustainable investment and industry collaboration, Ireland can ensure that ambitious policy announcements lead to real, lasting improvements that strengthen public trust and drive sustainable growth.
A Critical Juncture: A Swift Shift to Assured Execution
Ireland's infrastructure challenge isn't primarily about funding. Strong economic growth, fuelled by multinational investment in recent years, has resulted in a projected €24 billion budget surplus in 2024. This financial strength, coupled with access to EU funds, presents a rare opportunity to make transformative investments in critical infrastructure. While the surplus and EU funding provide fiscal flexibility, translating these resources into tangible infrastructure projects requires navigating a complex landscape.
As Ireland embarks on this new phase of development, the focus must shift from securing budgets to streamlining project delivery. This includes enhancing regulatory efficiency to reduce planning and consenting bottlenecks, strengthening supply chains and improving project management capabilities to control costs and ensure timely completion. Unlocking the full potential of infrastructure investment will require strategic coordination across Government, industry and local communities, ensuring that projects are not only well-funded but also delivered on time and to the highest standards.
Success will depend on overcoming bottlenecks in planning, addressing labour and material shortages and embracing innovation in construction and procurement. Lessons from other nations show that robust governance, digital transformation and sustainable practices can accelerate progress while ensuring long-term value.
In the coming articles, we will delve deeper into key infrastructure sectors, exploring the progress made, ongoing challenges and the practical solutions needed to overcome them. From transport and energy to data centres and sustainability, we will examine what’s working, what’s stalling and what’s needed to deliver and future-proof Ireland’s infrastructure for generations to come, using case studies from our extensive experience in the infrastructure sector.
References
[1] https://www.gov.ie/en/publication/078a1-programme-for-government-2025-securing-irelands-future/
[2] Ibid
[3] Ibid
[4] https://www.competitiveness.ie/media/1l2jqbnm/ncpc-bulletin-24-4-imd-world-competitiveness-rankings-2024.pdf
[5] https://www.gov.ie/en/publication/078a1-programme-for-government-2025-securing-irelands-future/
[6] Ibid
