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Data Centres

Dáil Éireann Debate, Thursday - 30 July 2020

Thursday, 30 July 2020

Questions (115)

Denis Naughten

Question:

115. Deputy Denis Naughten asked the Tánaiste and Minister for Business, Enterprise and Innovation the discussions his officials have had with IDA Ireland with regard to the development of data centres in line with the policy of locating them in areas with grid capacity and only in cases in which there is an employment dividend associated with their development; if an evaluation has been conducted by his Department of the estimated impact of all 55 current data centres and the over 30 planned data centres on the cost of electricity to other commercial and industrial users; and if he will make a statement on the matter. [20284/20]

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Written answers

In June 2018, the ‘Government Statement on the Role of Data Centres in Ireland’s Enterprise Policy’ was published by my Department, following consultation across Government, including with the Department of Communications, Climate Action and the Environment. The Statement sets out clearly that the existing demand for data centre development poses opportunities and challenges for Ireland and that a planned approach to addressing these is required.

Since the publication of the Government Statement in 2018, IDA Ireland has increased its emphasis on promoting a range of regional options for data centre investment. They have identified specific sites in regions throughout Ireland that are potentially suitable for accommodating the sustainable development of large scale data centre projects in terms of proximity to necessary energy and other appropriate infrastructures, subject to the required planning and environmental oversight. IDA Ireland only facilitate investment in projects that are deemed likely to deliver real regional economic benefits  and do not provide any financial supports for data centres in the Dublin region. Officials in my Department engage regularly with IDA Ireland in relation to enterprise policy, and related matters, including on this topic.

Data centres present challenges given that they are very energy intensive and, in the Dublin region in particular, there are electricity grid infrastructure capacity constraints. While this is not research conducted within my Department, Eirgrid has undertaken extensive analysis with regard to future electricity grid requirements including the impacts of data centre development through for example the 'Tomorrow's Energy Scenarios' process. Eirgrid has previously made it clear that there may in future be a need to limit the connection of large new electricity demands in certain geographic areas. Investments in the electricity transmission and distribution systems are planned and implemented by Eirgrid and ESB Networks in line with national energy policy and under the supervision of the Commission for Regulation of Utilities. Under the 2019 Climate Action Plan and the Government Statement, the Sustainable Energy Authority of Ireland are leading a working group to encourage investment by large energy users, such as data centres, in renewable electricity generation using Corporate Power Purchase Agreements (CPPA); officials in my Department and IDA Ireland have been engaging with this work.

Data centres are important to ensuring that Ireland continues to be a leader in the digital economy. Ireland has one of Europe’s largest clusters of data centres as a stable energy grid, temperate climate and significant skills base makes Ireland an attractive country for this form of investment. Data centres are an increasingly important part of the digital and communications sectors and are core infrastructure in the remote working and digital services economy.

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