Written answers

Wednesday, 5 March 2025

Department of Communications, Climate Action and Environment

Data Centres

Photo of Robert O'DonoghueRobert O'Donoghue (Dublin Fingal West, Labour)
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5. To ask the Minister for Communications, Climate Action and Environment if he will engage with colleagues and the Commission for Regulation of Utilities to review and potentially revise the existing policy framework to ensure that any future data centre developments provide clear and proportional benefits to the country. [9927/25]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal East, Fianna Fail)
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The Commission for Regulation of Utilities (CRU) is an independent regulator responsible for electricity and gas network connection policy and accountable to a Committee of the Oireachtas.

The CRU published a Large Energy Users Connection Policy Proposed Decision Paper on 18 February, 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. 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.

It is recognised 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.

However, there is a 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. 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.

Government policy on data centres is also articulated clearly in the July 2022 ‘Government Statement on the Role of Data Centres in Ireland’s Enterprise Strategy’, and the CRU refer explicitly to this policy as informing their approach. The statement makes clear the Government’s preference for data centre developments that provide opportunities for community engagement and assist SMEs, both at the construction phase and throughout the data centre lifecycle, as well as data centre developments associated with strong economic activity and employment.

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