Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

I thank the Deputy for raising what is a very important issue. Without question, the expansion of data centres in Ireland has led, and will continue to lead, to a large increase in electricity demand, concentrated in the Dublin area, which raises challenges for the energy system. One needs to consider data centres more broadly, in terms of both the FDI situation and also in terms of the digital economy and the digital transformation that we are undertaking along with other member states across the European Union. The European Union next generation funding majors on two key themes: the green economy and digital transformation.

Data centres are part of the core infrastructure of the digital economy. They have become increasingly important for remote working as we have seen during the pandemic. They also support high-quality jobs and some of the companies involved are offsetting the impact through investment in either wind farms and other renewable energy or forestry carbon sinks.

That said however, the issue needs to be planned and we need a strategic approach. In order to manage data centres in a planned manner specific energy-related actions are required, including for EirGrid and ESB Networks to work closely and innovatively with data centre developers to maximise the capability of the network to support timely connection and operation of data centres. In 2020 data centres represented approximately 11% of the total electricity used in Ireland. EirGrid’s generation capacity statement of 2020 to 2029 projects that demand from data centres could account for 27% of all demand in Ireland by 2029. In that context, EirGrid has launched Shaping Our Electricity Future which is a comprehensive public consultation and I invite the Deputy to contribute to that. Its aim is to make the grid stronger and more flexible so that it can carry significantly more renewable generation and manage increasing demand from high-volume energy users such as data centres. One of the approaches in EirGrid's Shaping Our Electricity Future consultation focuses on a more plan-led approach to data centre development limiting further development in Dublin while other options revolve around major grid reinforcement projects and power generation technologies. The consultation on this strategy will open on 14 June 2021. EirGrid is the key agency involved here with data centres connections and related energy costs.

I take the Deputy’s point on fuel poverty. We have measures in place in the context of allocation of some carbon tax fund revenues towards alleviating fuel poverty more generally and to support people in difficult situations. This is an issue that is topical and is one that requires ongoing strategic engagement.

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