Robert O'Donoghue (Dublin Fingal West, Labour)
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61. To ask the Minister for Enterprise, Trade and Employment his views on whether the current approach to data centre development is delivering sufficient benefits to justify the costs given the significant environmental impact of data centres, their relatively low contribution to local and national employment compared to other forms of investment, and their role in reinforcing Ireland’s reliance on foreign multinational enterprises for tax revenue; and if he will make a statement on the matter. [9926/25]

Peter Burke (Longford-Westmeath, Fine Gael)
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Data centres are critical infrastructure for our modern economy. They are a key part of our value proposition for foreign direct investment and central to Ireland’s economic and digital future. In addition to their direct value, data centres anchor other very valuable investment in Ireland. Furthermore, the supply chain expertise that has been developed by indigenous enterprise around the data centres has given that Irish subsector a significant global advantage, which has strongly contributed to associated indigenous employment and exports. Without data centre capabilities, our digital and related employment ambitions cannot be met.

Data centres underpin the provision of services that we often take for granted, from online banking and shopping to accessing health and public services online, to streaming movies. In addition to these services, data centres also enable remote working, facilitate improved work life balance for employees, and help to balance regional development.

While data centres are a key part of our value proposition for foreign direct investment and central to Ireland’s economic and digital future, it is clear that future data centre development must align with our climate targets.

This is why the 2022 Government Statement on the Role of Data Centres in Ireland’s Enterprise Strategy was developed to take account of energy capacity constraints and the need to ensure that the twin transition of decarbonisation and digitalisation of Ireland’s economy and society are complementary and in harmony with environmental policy.

The Statement adopts a series of principles to inform decisions on future data centre development in Ireland and signals that the data centre infrastructure that can be accommodated in Ireland should contribute positively to our climate and digital ambitions.

In mid-February this year, the Commission for Regulation of Utilities (CRU) published a proposed regulatory decision regarding connection of new data centres to the national electricity grid, in which the Commission noted that the Government Statement on Data Centres had informed their approach. Government will review this proposed decision and will engage with stakeholders, including industry, to understand the potential implications.

The CRU’s proposed Connection Policy alone cannot solve the issues we face in delivering grid capacity and infrastructure to facilitate data centre development. That is why Government committed in the Programme for Government 2025, 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 future investments.

Furthermore, in the coming months my Department will be undertaking detailed research and analysis in relation to the economic and societal impact of data centre developments in Ireland. This evidence base will also provide insights for guiding policy on future data centre development in Ireland.