Ossian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I thank Senator Byrne for raising this topic. Ireland has attracted the best data centre and tech companies in the world. It is a really important relationship, and the Government continues to work with the sector towards a secure and decarbonised energy future which will enable the twin transitions of digitisation and decarbonisation of our economy and our society. However, data centres, like all energy users, have to exist within the boundaries of our climate targets. Additionally, the electricity system is under pressure at present and particularly so in Dublin.Ireland is not alone in facing this challenge. Data centre energy demand is a global challenge for companies and governments but there are fantastic opportunities on the horizon. The July 2022 Government statement on the role of data centres in Ireland’s enterprise strategy outlines the principles for sustainable data centre development and provides clear guidance to decision makers in the planning process. The statement encourages the data centre sector to implement decarbonised energy solutions and increase efficiency. This statement expresses the Government's preference for data centres that can demonstrate additionality of their renewable energy use in Ireland and which are ultimately decarbonised by design, providing net zero data services. It should be noted that no other European country has facilitated data centre growth to 18% of total electricity consumption, as Ireland has. As a result of this unprecedented growth, there is currently limited scope for adding new connections over the short term. Current contracted and further connections are now dependent on successful grid development. Ensuring timely delivery of extensive grid enhancements is going to be critical to delivering the current contracted data centre demand, which is expected to reach about 30% of total electricity consumption by 2032. It would also support overall energy demand increases for growing in a prosperous economy, ensuring the delivery of priority infrastructure projects for the State, such as Metrolink, DART West, DART plus, Dublin Port, housing development and the electrification of transport and heat.

New commissions will also be dependent on the outcome of the Commission for the Regulation of Utilities' review of connection policy for large energy users. The aim of this review is to provide a new pathway for large energy users to connect to the electricity and gas systems and minimise the impact on national carbon emissions, while also taking account of the capacity of our energy and grid infrastructure. A decision paper is expected in the summer of 2024.

Recognising the opportunity to strengthen collaboration between relevant stakeholders through the energy security in Ireland to 2030 strategy, the Department of Environment, Climate and Communications and the Department of Enterprise, Trade and Employment have committed to working with the IDA and industry to identify and support new approaches to integrating large-scale demand sustainably into Ireland's energy systems that align with our climate ambitions to reduce fossil fuel demand and our energy security requirements. Ireland has set an ambitious target of up to 80% of electricity consumption to come from renewable sources by 2030. Until then, the scope for new connections is limited, however it is expected that Ireland in the future will have sufficient decarbonised energy to facilitate the economic growth ambitions of both indigenous and multinational businesses. There are current and real constraints while we are managing the transition pathway. Additional resources have been allocated in the Department of Environment, Climate and Communications to prioritise and manage this pathway.