Malcolm Byrne (Fianna Fail)
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I thank the Minister of State for taking this matter on behalf of the Minister for the Environment, Climate and Communications, Deputy Ryan. As has often been said before, data is the oil of the 21st century. For oil to be of any use, it has to be extracted, refined, stored and distributed and we need to do this with data as well. Like oil, we certainly need to regulate its use and have to be very aware of its environmental concerns but we do need a strategy around data storage in Ireland. The Minister of State will be aware that there are currently 82 data centres in Ireland and they store almost everything that we have on social media but right up to records of hospitals, schools, financial institutions, Government Departments and in fact, I am quite certain a lot of the data relevant to the operation of these Houses is stored in data centres.

It is fair to say that a modern society and modern economy cannot function without data centres and indeed, as we go forward, particularly if we develop systems based on artificial intelligence or other new technologies, we are going to need some form of data storage and we are going to need data centres. This is often misunderstood as to their purpose and there are a lot of false narratives around their operation. Yes, they do consume energy and there is no doubt about that. Yes, they are responsible for emissions so we do need to address that. I notice in The Irish Times this morning Google has stated its greenhouse gas emissions have increased by 48% in the last five years even though Google has a strategy to try to reduce the emissions.

I will bring to attention the story in the Business Post on Sunday by Donal MacNamee and Ellie Donnelly where Leo Clancy, the chief executive of Enterprise Ireland, raised concern about the narrative around data centres, the lack of a forward-thinking plan on their use and also the fact that there has been a note from officials to the Minister, Deputy Peter Burke, in the Department of enterprise expressing concern about a lack of policy in this area. It is now critical that the Government sets out very clearly our policy around this basic infrastructure for a modern society and a modern economy around data centres, when and where they can be constructed and about the requirements for energy consumption and emissions. In the same way as when we look at the need for renewable energies and how we need to have a strategy in that area, we need to understand this critical piece of infrastructure given the fuel that data is for modern societies and modern economies and we need a very clear and understandable Government policy in this area. It needs to allow for an increased number of data centres or larger data centres while at the same time managing our very serious concerns about energy consumption and emissions. The lack of a clear policy in this space at the moment is very concerning.

Ossian Smyth (Dún Laoghaire, Green Party)
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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.

Jerry Buttimer (Fine Gael)
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Tá nóiméad amháin ag an Seanadóir Malcolm Byrne.

Malcolm Byrne (Fianna Fail)
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I thank the Minister of State and I welcome that, but he will appreciate the concern for both multinational and indigenous companies is that if we do not have the necessary infrastructure in place, it will place serious constraints on growth. I obviously welcome the commitment the Minister of State has made that the review of the connection policy for large energy users by the Commission for the Regulation of Utilities will be published in summer 2024. Summer can obviously be interpreted in a very broad way; is the Minister of State indicating that by 31 August we will definitely see the publication of this paper? Will there be clarity and certainty around how we can proceed with data centres in the future, which are critical to our society and our economy?

Ossian Smyth (Dún Laoghaire, Green Party)
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Data centres are obviously critical to our economy, they bring in huge amounts of money and giant amounts of employment. Ireland is storing about one thrid of European data, it is clearly an engine of our economy. We had a policy on data centres in 2018 that came from the Department of trade and did not refer to security of supply, the risk of blackouts in our electricity system or climate change. We updated that in 2022 with the new Government statement. The Commission for the Regulation of Utilities is now carrying out a review. That commission is independent and reports to the Oireachtas environment committee. If I am being asked when exactly it is going to publish its review, I am being told it will be in the summer but the environment committee is the right forum to ask, as the commission is not actually answerable to the Minister or the Department.

Data centres have to find a way to contribute to the security of supply. That is possible. If they all have a backup power supply and we run out of electricity in the country, we can turn off the data centre supplies first and allow them to run on backup. They can contribute to security of supply. If we make data centres provide additional renewable energy every time they are built, which was not going to otherwise be provided - a new wind or a new solar farm - they will be contributing to our climate targets as well. We need to find a way that we can make the data centres work for the economy, but also work for our climate targets and our security of electricity supply. We can do that. I talk to these tech companies all the time and of course they have influence on the Government because they contribute so much in tax.

Eugene Murphy (Fianna Fail)
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Gabhaim buíochas leis an Aire agus le Seanadóir Byrne. Our next Commencement matter is in the name of Senator Pauline O'Reilly. The Minister of State, Deputy Smyth is staying with us agus tá ceithre nóiméad aige.