Richard Bruton (Dublin Bay North, Fine Gael)
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115.To ask the Minister for Communications, Climate Action and Environment the current policy in relation to connections for new data centres, and their obligations in relation to standby non-renewable capacity, and the use of waste heat; the extent to which data centres for which permission has been sought can meet such criteria; and his views on the existence of an effective moratorium in the sector; and if he will make a statement on the matter. [33365/24]

Eamon Ryan (Dublin Bay South, Green Party)
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Data centres are central to Ireland’s economic and digital future and the Government is supportive of sustainable data centre developments as set out in the July 2022 Government Statement on the Role of Data Centres in Ireland’s Enterprise Strategy. The Strategy also states that data centres that are not connected to the electricity grid and are powered mainly by on-site fossil fuel generation would not be in line with national policy.

In addition, in response to constraints on electricity supply, the Commission for the Regulation of Utilities (CRU) as independent regulator responsible for electricity and gas connections introduced new assessment criteria on the connection of data centres to the electricty system in November 2021. These criteria include a requirement for data centres to have back-up dispatchable generation facilities on-site, and consideration of the location of the application. The direction issued by CRU did not constitute a moratorium on new data centre connections, but rather introduced new assessment criteria for the System Operators to consider and apply in the processing of applications. Moreover, the CRU is currently reviewing its Large Energy Users connection policy. The aim of this review is to provide a new pathway for Large Energy Users to connect to the electricity and gas systems, minimising the impact on national carbon emissions and security of supply. Options being considered include transition to real time zero emissions, non-firm grid connection, on-site back-up and/or storage, green gas coupled with CPPA (i.ie. biomethane), location (including green parks), energy efficiency, as well as district heating opportunities.

In relation to waste heat usage, the policy context in which district heating operates is constantly evolving and further policy consideration is ongoing. The recently amended Energy Efficiency Directive (EED) was adopted in October 2023 following publication of the 2023 District Heating Steering Group Report and the Government decision of July 2023. The EED contains articles that impact on district heating which require further consideration in relation to transposition. Nonetheless, the Tallaght District Heating Scheme, already in operation, is an excellent example of an innovative project that takes waste heat from a nearby data centre providing low-carbon heat to public buildings in the area, contributing to sustainability goals and reducing carbon emissions.

As Ireland decarbonises the electricity system, the potential to utilise green, clean power for all sectors of the economy will increase. Through the accelerated development of offshore wind energy, it is expected that Ireland will in the future have sufficient decarbonised energy to facilitate the economic growth ambitions of both indigenous businesses and MNCs, but there are current and real constraints while we are managing the transition pathway.