Eoin Ó Broin (Dublin Mid West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

61. To ask the Minister for Communications, Climate Action and Environment if his attention has been drawn to the situation whereby grid constraints from the excessive data centre demand are negatively impacting the connection of housing to the electricity network. [8350/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Issues regarding the development and operation of the national electricity grid rest with EirGrid, as Transmission System Operator, and ESB Networks, as Distribution System Operator, who are independent of me as Minister in the exercise of their respective functions. Both entities are overseen by the independent regulator, the Commission for Regulation of Utilities (CRU).

Planning, building, safely operating and maintaining the electricity system are functions which are assigned to the respective Distribution and Transmission System Operators and for which they are accountable to the CRU. The CRU is accountable to a Committee of the Oireachtas. The CRU was assigned responsibility for the regulation of the Irish electricity sector following the enactment of the Electricity Regulation Act, 1999 and subsequent legislation.

Nonetheless, my Department is aware of the challenges around facilitating data centre connections in constrained regions which can lead to grid constraints on the local distribution network impacting other customers’ connections, including households and other commercial customers. In response to concerns around network constraints, particularly in the Dublin region, in November 2021 the CRU issued a Direction to System Operators, setting assessment criteria for new data centre connections aimed at protecting security of electricity supply and mitigating negative effects to the local electricity network in constrained areas.

More recently, the CRU have published a Large Energy Users Connection Policy Proposed Decision Paper on Tuesday February 18th, commencing a six-week consultation period. The proposed decision will apply to data centres only and will direct the System Operators to continue assessing connection applications considering local constraints for each application. During the consultation period, the Government will review the CRU’s proposed decision in detail and will engage with stakeholders to understand the potential implications.

We face the significant challenge of finding a balanced approach to facilitating additional demand for energy by data centres while also ensuring the competitiveness, sustainability and security of supply of our energy system, as well as delivering on priority policy objective such as housing. The CRU’s Connection Policy alone cannot solve this challenge.

That is why Government has included a commitment in the Programme for Government to address this challenge by scaling up investment in critical infrastructure and in our electricity grid which will be advantageous for customers and enhance the data centre footprint to support continued FDI investment. The continued development and planned enhancements to electricity grid infrastructure is key to facilitating the delivery of future demand growth.

Eoin Ó Broin (Dublin Mid West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

62. To ask the Minister for Communications, Climate Action and Environment if he plans to bring forward legislation to ban connections of islanded data centres to the gas grid. [8352/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

As articulated in the July 2022 ‘Government Statement on the Role of Data Centre Policy in Ireland’s Enterprise Strategy’ ‘islanded’ 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. This Statement sets out principles for sustainable data centre development and expresses the Government’s preference for data centres that can demonstrate additionality of their renewable energy use in Ireland, and which are decarbonised by design.

In that regard, I note the publication of the Commission for Regulation of Utilities’ (CRU’s) Large Energy Users Connection Policy Proposed Decision Paper on Tuesday February 18th, commencing a six-week consultation period. This proposed decision relates to data centres only and is distinct from large energy users in the manufacturing sector. As stated in the decision paper, the CRU considers that, in their view, the provisions under the Climate Action Act and Gas Act 1976 “do not provide a sufficient legal basis to the CRU for measures in relation to islanded data centre gas connections and emissions provisions”. The proposed decision’s consultation period provides a further opportunity for stakeholders to advise the Commission on potential impacts and operational considerations before the regulatory direction is finalised. During this period, the Government will review the CRU’s proposed decision in detail and will engage with stakeholders to understand the potential implications.

More broadly, the Programme for Government recognises the challenges regarding the sustainability of data centres and their alignment with our climate goals and commits to enhancing data centres’ use of renewable energy sources, energy efficient technology and effective solutions, such as waste heat capture to reduce their carbon footprint. The Government also recognises that data centres are critical infrastructure for our modern economy as they provide the foundation for almost all online aspects of our lives. Without data centres, much of the digital world that we rely on day to day, from online banking and shopping, accessing health and public services online, to streaming movies, would not be possible.

That is why Government has included a commitment in the Programme for Government to develop a comprehensive plan to accelerate energy generation, connectivity, and planning processes. This plan will guide the development of data centres in Ireland and provide certainty to industry with regards to making short and medium-term investments.