Written answers

Thursday, 4 March 2021

Department of Enterprise, Trade and Employment

Data Centres

Photo of Gerald NashGerald Nash (Louth, Labour)
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1. To ask the Minister for Enterprise, Trade and Employment the number of data centres that are currently operational and the number that are under consideration including pre-planning stage by county; the average number of long-term jobs a data centre creates; the job numbers in data centres by county; and if he will make a statement on the matter. [12359/21]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Department of Enterprise, Trade and Employment does not collect or store the type of detailed information requested on data centre location, or their stage in the planning process.

There may be some scope for different definitions of what could be considered a data centre or multiple data 'halls' on particular sites might be counted. Nonetheless, it is clear that the vast majority of large 'hyperscale' or 'co-location'-type data centre developments are located in the greater Dublin area, with a small number operational or planned across Cork, Limerick, Meath and elsewhere.

While not all data centres are operated by multi-national firms, IDA Ireland has further advised me that it does not maintain a register of data centre locations. IDA Ireland point out that, when dealing with potential data centre investments, it promotes regional locations for those investments in line with the ‘Government Statement on the Role of Data Centres in Ireland’s Enterprise Strategy’. Recent examples of large data centre developments outside of Dublin include an Amazon project in Drogheda and Facebook’s project in Meath.

An analysis of the data centre sector in Ireland, including existing and planned data centres, is produced quarterly by industry groups BitPower and 'Host in Ireland'. The Deputy may find this a useful resource:

In terms of full-time permanent employment in the data centres themselves, it is estimated that data centres require between 30 and 50 well paid and secure direct jobs each in areas such as management, IT and systems engineers, mechanical and electrical maintenance and repair management. However around 20,000 direct jobs in the Irish economy are supported by those who operate large data centre infrastructure here. The wider technology sector in Ireland employs in excess of 150,000 people.

Data centres are an increasingly important part of the digital and communications sectors and are core infrastructure in the remote working and digital services economy. The transition to a digital economy is well underway. It is impacting all sectors of the economy, and Ireland is well positioned as a digital gateway to Europe. Data centres and the services they provide act as a 'hook' for further investment and job creation.

Photo of Gerald NashGerald Nash (Louth, Labour)
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2. To ask the Minister for Enterprise, Trade and Employment his views on whether the development of data centres would be better served by State involvement to ensure they align with economic, social and environmental goals and provide a return to the Exchequer other than development levels and commercial rates; and if he will make a statement on the matter. [12362/21]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Ireland has one of Europe’s largest clusters of data centres as a stable energy grid, temperate climate and significant skills base makes Ireland an attractive country for this form of investment. Data centres are an increasingly important part of the digital and communications sectors and are core infrastructure in the remote working and digital services economy. The 2018 Government Statement on Data Centres sets out the strategic importance of data centres to Ireland’s overarching enterprise policy and their role in attracting employment and investment to Ireland within the technology sector while it also sets out the challenges posed by the increased energy demand and steps to mitigate this.

The State's planning system, at local level or through An Bord Pleanala, is the mechanism used to ensure that all industrial developments are consistent with our national policy as set out in the National Planning Framework and other strategic policy documents. The planning process incorporates public consultation processes and, where appropriate, environmental impact assessment, to ensure that development is consistent with the relevant regulations and national policy more broadly. Data centres in particular require detail engagement with the electricity grid connection process, managed by Eirgrid, to ensure they are consistent with our energy systems capacity.

Data centres have an economic return in that they are an increasingly important part of the digital and communications sectors and are core infrastructure in the remote working and digital services economy. They also are significant capital intensive investments that act as a hook for further investment and job creation. Around 20,000 direct jobs in the Irish economy are supported by those who operate large data centre infrastructure here. The wider technology sector in Ireland employs in excess of 150,000 people.

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