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Data Centres

Dáil Éireann Debate, Tuesday - 10 November 2020

Tuesday, 10 November 2020

Questions (42)

Denis Naughten

Question:

42. Deputy Denis Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment 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. [34991/20]

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Written answers

Data centres are an increasingly important part of the digital and communications sectors and a core infrastructure for remote working. 

Since the publication of the ‘Government Statement on the Role of Data Centres in Ireland’s Enterprise Policy’, in June 2018, IDA Ireland has been promoting regional options for data centre investments. It has identified sites throughout Ireland suitable for accommodating data centre projects. This site  assessment includes proximity to energy and other infrastructures, subject to the planning and environmental oversight required. IDA Ireland only facilitates investment in projects that are deemed likely to deliver real economic benefits. It does not provide financial supports for data centres in the Dublin region. Officials in my Department liaise regularly with IDA Ireland in relation to enterprise policy, including data centres.

Data centres are energy intensive and I am aware that in the Dublin region there are constraints on the electricity grid capacity. While no research of the nature described by the Deputy has been conducted by my Department, Eirgrid has done analysis on future electricity grid requirements and the impacts of data centres in its 'Tomorrow's Energy Scenarios' process.

Like all electricity customers, data centres are required to contribute toward the costs of developing and maintaining the electricity grid as part of their electricity bills. Data centres, and all electricity customers, also contribute towards the Public Service Obligation (PSO) levy which is used to subsidise the increased generation of renewable electricity, such as solar and wind. 

My Department has and will continue to engage with the Commission for Regulation of Utilities (CRU) to ensure that grid costs are recovered fairly from all electricity customers – including large energy users. The CRU is mandated to ensure that significant energy users are paying an equitable, cost-reflective and appropriate portion of the cost of required grid investments.

My officials have engaged with the Sustainable Energy Authority of Ireland in its research on policy options to promote Corporate Power Purchase Agreements which some  data centre operators have already purchased in the Irish market.  This ensures that they play their part in sustainably meeting the additional energy demand they bring to the system. I hope we can encourage more, in order to spread the cost of increasing our proportion of renewable electricity.

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