John Lahart (Dublin South West, Fianna Fail)
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64. To ask the Minister for Communications, Climate Action and Environment if he will provide an update on any district heating projects connected with data centres having either being rolled out or being rolled out nationwide; and if he will make a statement on the matter. [17838/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
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District heating is a proven technology that can play a key role in improving energy efficiency and reducing emissions in the heat sector. Government policy recognises the contribution that district heating can make to Ireland’s climate and goals goals. This is underpinned by the findings of the SEAI's 2022 National Heat Study, which highlighted significant potential for heat in buildings to be supplied by district heating, particularly in cities and large towns, where demand is concentrated, and heat sources are prevalent. Additionally, the City of Dublin Energy Management Agency has estimated that waste heat generated by industry could heat up to one million buildings in Ireland.

The establishment of the District Heating Steering Group, which we committed to through the Climate Action Plan process, was a critical step on our journey towards developing district heating in Ireland. The District Heating Steering Group Report set out recommendations to develop the district heating sector, including the need to develop underpinning legislation and to support the development and expansion of district heating networks.

In a district heating network, heat is generated at one or more centralised locations, each of which is referred to as an energy centre, and is then distributed via a network of insulated pipes to individual properties connected to the network. Different technologies and energy types can be used as heat sources within energy centres. Today, common heat sources include combined heat and power plants, and waste heat from industrial processes. The Programme for Government recognises the important role district heating can play, particularly in relation to the capture of waste heat from data centres. By reducing reliance on fossil fuels and integrating sustainable energy, district heating contributes to lowering greenhouse gas emissions, and supporting broader energy efficiency and climate objectives.

The Government has financially supported the development of district heating networks In Ireland through the Climate Action Fund. To date, there is a single relatively large-scale district heating scheme operational in Ireland, which was developed by South Dublin County Council in Tallaght, supported by the Climate Action Fund. It uses waste heat from a data centre and supplies low-carbon heat to customers, including the County Council and the Technological University Dublin. Phase 2 of this scheme is now under consideration.

My Department is aware of a pipeline of further district heating projects, including potential projects outside Dublin. The majority of projects in the pipeline are in the early stages of their project lifecycles. While some of the projects in the pipeline have already defined the proposed heating technology, others are still considering which heat source best meets requirements. From the available information, almost a third of projects in the pipeline intend to avail of heat from data centres, including the Blanchardstown District Heating Scheme being developed by Fingal County Council. The Department, along with the SEAI's District Heating Centre of Excellence, are working with project sponsors to progress these initiatives.