Oireachtas Joint and Select Committees

Thursday, 7 December 2023

Joint Oireachtas Committee on Climate Action

Review of the Climate Action Plan 2023: Minister for Enterprise, Trade and Employment

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael) | Oireachtas source

Let me answer the question because it is important. To measure the benefit of data centres by the number of people who are employed in them completely misses the point. Although I understand the question, the value of data centres is much broader than that in terms of how Ireland remains and continues to be a world leader in a digital economy, and how we regulate and grow that economy.

That said, Ireland does not have an open door to new data centre development without any restrictions or limitations. Of course we do not. The energy use of data centres is a very serious issue that we need to overcome. That is why the Government statement on data centres is very clear that any new data centre development has to show sustainability in how it can be powered in future.

One of the reasons I think our offshore and onshore wind targets and commitments are so exciting is that not only are we decarbonising our electricity grid, but we are also producing significantly more energy through clean resources, that is, wind and solar. That can allow us to be able to develop a data-based economy with data centres that are powered by wind in the future. Our challenge for the next four to five years or so is how to decarbonise data centres and how to allow for the development of sustainable data centres in the right places where the grid is strong enough in a way that does not undermine energy security and also builds in a plan for the future for those data centres to be powered by renewable sources only. We spend much time thinking about that in the Department and I spend quite a bit of time speaking to the Minister, Deputy Ryan, about getting that balance right as well.

The Deputy is correct in that if we were to keep building data centres and powering them by electricity generated by carbon-based fuels, by gas power generation on site or diesel generators, that would not be a sustainable proposition. So-----

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