Barry Ward (Dún Laoghaire, Fine Gael)
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159. To ask the Minister for Environment, Community and Local Government the position regarding any data centre that requires frequent use of back up generators due to unreliable energy supply; and if he will make a statement on the matter. [57706/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
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Neither my Department nor the System Operator, EirGrid, are aware or have been informed of any Data Centre that is connected to the electricity system in Ireland that requires frequent use of a generator due to an unreliable energy supply.

In practice backup generators are run by Data Centre operators for a variety of reasons including testing, participation as part of a demand side unit (DSU) which is registered in the Single Electricity Market Operator (SEMO) providing flexible demand, voluntary demand reduction (when in System Alert with high risk of going into Emergency State) and Mandatory Demand Curtailment.

These actions are all in line with the contractual requirement of Data Centre's to both the SEM and in relation to their connection agreements. The Transmission System Operator, EirGrid, has relied on voluntary demand reduction infrequently and only when the system has been tight, which is as expected of those data centres that have signed a connection agreement with this flexible demand criterion included.

Barry Ward (Dún Laoghaire, Fine Gael)
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160. To ask the Minister for Environment, Community and Local Government the position regarding the annual usage of electricity by data centres in Ireland; if this is recorded by his Department; and if he will make a statement on the matter. [57709/25]

Barry Ward (Dún Laoghaire, Fine Gael)
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161. To ask the Minister for Environment, Community and Local Government the position regarding the total annual use of electricity by data centres in Ireland; the total percentage of national energy use they take up; and if he will make a statement on the matter. [57710/25]

Darragh O'Brien (Dublin Fingal East, Fianna Fail)
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I propose to take Questions Nos. 160 and 161 together.

Data on data centres metered electricity consumption is published by the Central Statistics Office (CSO). According to the CSO, metered electricity consumption by data centres increased from 6,335 Gigawatt hours (GWh) in 2023 to 6,969 GWh in 2024. The percentage share of metered electricity consumption used by data centres rose from 5% in 2015 to 22% in 2024.

Ireland has attracted the best data centre and tech companies in the world. This is a really important relationship, and the Government continues to work with the sector towards a secure and decarbonised energy future. Data centres are central to Ireland’s economic and digital future as they are a key part of our value proposition for foreign direct investment and the associated employment.

As the rapid pace of data centre growth over the previous decade presents challenges in terms of our energy infrastructure, the Programme for Government commits to scale up investment in critical infrastructure and our electricity grid which will be advantageous for all customers and enhance the data centre and digital economy footprint to support continued FDI investment. In addition to this, the new Private Wires policy is designed to unlock private investment in electricity infrastructure by allowing generators to connect directly with users. This means quicker connections, more clean power on the ground.

The Programme for Government also addresses concerns regarding the sustainability of data centres by committing to allow data centres that contribute both to economic growth and efficient grid usage, by enhancing the use of renewable energy sources, energy efficient technology and energy effective solutions.

Additionally, the 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.

Barry Ward (Dún Laoghaire, Fine Gael)
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162. To ask the Minister for Environment, Community and Local Government the position regarding any data centre in Ireland that is associated with a district heating supply to use the excess heat created by their operations; and if he will make a statement on the matter. [57712/25]

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 goals. This is supported 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. The National Heat Study included analysis of excess heat being produced by data centres (www.seai.ie/data-and-insights/national-heat-study/district-heating-and-cool). The current Programme for Government specifically recognises the important role district heating can play, particularly in relation to the capture of excess heat from data centres.

The use of excess heat from data centres offers the potential to provide low carbon heat for district heating schemes, as evidenced by the Tallaght District Heating Scheme (TDHS) which was developed by South Dublin County Council and is the first large-scale district heating network of its kind in Ireland. The TDHS uses excess heat from a data centre to provide heat to public sector and residential customers. Funding was provided by my Department, through the Climate Action Fund, to support the development of the scheme.

My Department is currently transposing the Energy Efficiency Directive (EED) which includes a mandate on the supply of excess heat, where technically and economically feasible, to district heating companies by industrial facilities whose total rated energy output is above a specific threshold.

My Department is also preparing legislation - see www.gov.ie/en/department-of-climate-energy-and-the-environment/publications/heat-networks-and-miscellaneous-provisions-bill-2024/ - to support the expansion of district heating networks. The Bill will include a requirement for all heat networks in planning or development to be based on the use of renewable energy and/or excess heat, in line with the EED definition of "Efficient District Heating".

There are a number of other district heating projects that my Department is aware of, the majority of which are in the early stages of their project lifecycles. From available information, a significant number of projects in this pipeline intend to avail of excess heat from data centres. My Department, along with the SEAI's District Heating Centre of Excellence, which was established on foot of a recommendation from: www.gov.ie/en/department-of-climate-energy-and-the-environment/publications/district-heating-steering-group/

will continue to work with project sponsors to progress these initiatives.