Written answers
Thursday, 28 May 2026
Department of Enterprise, Trade and Employment
Job Losses
Donna McGettigan (Clare, Sinn Fein)
Link to this: Individually | In context
303. To ask the Minister for Enterprise, Trade and Employment following the announcement by a company (details supplied) that it plans to cut up to 350 jobs in Ireland, if his Department has examined the risk that data centres could play a role in job losses in the tech sector here; and if he will make a statement on the matter. [40936/26]
Peter Burke (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context
The recent launch of Government’s Digital and AI strategy, Digital Ireland – Connecting our People, Securing our Future, reflects our continued ambition to harness the full potential of digital and AI technologies to drive productivity, support economic growth, and deliver modern, efficient public services.
Data centres are central to this ambition, as they form part of the critical infrastructure required for our digital economy to thrive. Their presence strengthens Ireland’s position as a strategic international location for enterprise activity, particularly in the ICT, financial services, and advanced manufacturing sectors.
Research commissioned by my Department estimates that approximately 20,000 jobs were linked to the construction and operation of data centres in 2024 in Ireland. However, their wider economic importance is significantly greater, underpinning core activities across a broad range of sectors in Ireland.
On that basis, it is clear that data centres are key enablers of employment across our economy.
In relation to the matter raised by the Deputy, decisions taken by individual companies regarding employment levels are typically driven by a range of global commercial and strategic factors, including changes in business models, technological developments, and international market conditions. There is no evidence available to my Department to suggest that data centres are contributing to job losses in the technology sector.
The Government will continue to engage closely with enterprise to support employment, while ensuring that Ireland remains an attractive location for investment and innovation in a rapidly evolving global digital economy.
Donna McGettigan (Clare, Sinn Fein)
Link to this: Individually | In context
304. To ask the Minister for Enterprise, Trade and Employment the assessments carried out on job losses in other parts of the economy due to data centre growth, for example, through higher energy bills or pressure on electricity supply for small businesses; and if he will make a statement on the matter. [40937/26]
Peter Burke (Longford-Westmeath, Fine Gael)
Link to this: Individually | In context
Data centres play a critical role in supporting Ireland's digital economy, and Government is aware that this importance will only grow with the development of Artificial Intelligence.
Ireland’s Digital and AI strategy, Digital Ireland – Connecting our People, Securing our Future, reflects the Government’s determination to harness the full economic potential of digital and AI technologies to drive economic growth and deliver modern, efficient public services.
Analysis commissioned by my Department indicates that data centre construction and operations contribute positively to the Irish economy, accounting for approximately 20,000 jobs in 2024. This headline figure does not capture their wider economic significance. The research demonstrates that data centres in Ireland support core activities across multiple sectors, underpinning a significant proportion of Ireland’s GDP and hundreds of thousands of jobs across the broader economy.
Large energy users, including data centres, have made a disproportionately large contribution to the provision of new energy infrastructure needed to deliver a secure and increasingly renewables led energy system.
For instance, large-energy-users have contributed the vast majority of costs associated with Ireland’s ‘Temporary Emergency Generation’ security of supply programme, with the data centre industry likewise making a sizeable contribution to the development of renewables through Corporate Power Purchase Agreements (CPPAs).
An example of this was the energisation of a new 126 MW onshore windfarm in April 2026, facilitated through a long-term CPPA between AWS and Bord na Mona. These CPPAs are in addition to the required payment of the PSO Levy by data centres, which is used to support further renewables development in Ireland.
Accordingly, the Government will continue to ensure that data centre development is aligned with Ireland’s economic, energy and climate objectives, in a way that supports sustainable growth and protects the interests of businesses and consumers alike.
Donna McGettigan (Clare, Sinn Fein)
Link to this: Individually | In context
305. To ask the Minister for Enterprise, Trade and Employment the protections for workers who might lose their jobs if data centre expansion pushes out other types of employment; and if he will make a statement on the matter. [40938/26]
Alan Dillon (Mayo, Fine Gael)
Link to this: Individually | In context
Research commissioned by my Department estimates that approximately 20,000 jobs were linked to the construction and operation of data centres in 2024 in Ireland. However, their wider economic importance is significantly greater, underpinning core activities across a broad range of sectors in Ireland. On that basis, it is clear that data centres are key enablers of employment across our economy.
Decisions taken by individual companies regarding employment levels are typically driven by a range of global commercial and strategic factors, including changes in business models, technological developments, and international market conditions.
However, where redundancies are contemplated, Ireland has a robust suite of employment rights legislation in place to protect and support potentially impacted workers.
Under the Redundancy Payments Act 1967, as amended, an employee with more than 2 years’ service who is made redundant may be entitled to a redundancy payment. The statutory redundancy payment is 2 weeks' pay for every year of service plus 1 additional week's pay. This payment is capped at €600 per week.
The Protection of Employment Act 1977, as amended, places obligations on employers proposing collective redundancies, which arise when certain thresholds are met. Employers must carry out a 30-day consultation with employees’ representatives and notify the Minister for Enterprise, Tourism and Employment at least 30 days before the first redundancies take effect.
The Minimum Notice and Terms of Employment Act 1973, as amended, obliges employers to give a certain level of notice to employees prior to dismissal, with the length of such notice depending on the employee’s length of service,
The Unfair Dismissals Act 1977, as amended, protects employees with more than one year’s service from Unfair Dismissals.
Where redundancies occur which are outside the parameters of collective redundancies, employers are still legally obliged to conduct the redundancy process fairly and to use reasonable selection criteria in choosing to make people redundant. In accordance with the principles of fair procedures and natural justice, any such process should normally include a consultation with potentially affected employees.
If an employee believes their employment rights have been breached, they can make a complaint to the Workplace Relations Commission under the relevant legislation. In general, complaints to the WRC must be made within 6 months of the alleged breach.
Government also provides a range of supports to any employees facing job losses. The Intreo service of the Department of Social Protection can assist with income supports and relevant employment and training opportunities where needed.
No comments