Oireachtas Joint and Select Committees

Tuesday, 28 September 2021

Joint Oireachtas Committee on Climate Action

Energy Charter Treaty, Energy Security, Liquefied Natural Gas and Data Centres: Discussion

Dr. Patrick Bresnihan:

I am echoing the concern that was raised by EirGrid on that point. I agree with the broader point the Deputy made that 11% is too much and 28% is too much.

The second point is about the benefits that data centres bring. This is the other part of it. It is not only about whether Ireland can meet the energy and electricity demands. There is another question about the benefits that data centres bring. I understand that Ireland is a digital hub. Our foreign direct investment has, since the 1980s, been based around the tech, manufacturing, digital and software sectors. However, in terms of long-term employment and regional development, it is not clear, beyond construction, what data centres bring. Intel recently made an announcement that there might be concerns over energy security with the expansion of its plant. There is a major anchor industry in the tech sector that provides many jobs. In the broader scheme of things, we should consider this from a cost-benefit point of view. There are questions about brownouts and blackouts, and the kind of damage they can do in terms of reputation and attracting industries to provide jobs and long-term investment. That is the point I am raising.

I also agree with the point about mitigation. The case in Singapore was about putting a pause on the development of data centres so that adequate, realistic mitigation strategies, including renewable energy, district heating and all sorts of other things, could be put in place to make sure that data centre development was more sustainable. That would be the line I would take. The idea is not to stop them forever but to have a moratorium to give enough space for there to be adequate research into the costs and benefits of data centres and into the kinds of technologies and infrastructures that could be developed with the tech industry. It is important that the tech industry takes more responsibility for these challenges.