Dáil Éireann Debate, Thursday - 10 April 2025
5. Deputy Ruth Coppinger asked the Minister for the Environment, Climate and Communications if he will report on the impact of the expansion of data centres on the State’s climate change targets; and if he will make a statement on the matter. [17991/25]
View answerI want the Minister to report on the impact of data centres on us reaching our climate change targets. As he knows, 21% of all metered electricity use is now coming from data centres, whereas all residential dwellings create 28%. It has increased five times in eight years. It is the dominant driver of increased electricity demand in Ireland according to the SEAI. How can we reach our targets with this amount of data centres?
I thank the Deputy for her question. Ireland has attracted the best data centres 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. However, data centres, like all large energy users, have to exist within the boundaries of our climate legislation and targets. The programme for Government addresses the challenges regarding the sustainability of data centres by committing to allowing data centres that contribute to both economic growth and effective grid use by enhancing the use of renewable energy sources, energy efficiency technology and energy-effective solutions.
Ireland, similarly, has ambitious climate goals and the Climate Action and Low Carbon Development Act has set us on a legally binding path to net zero emissions no later than 2050 and to a 51% reduction in emissions by the end of this decade. Ireland also has very ambitious goals in relation to economic growth, digitalisation and data centre development. Emissions from data centres are captured under the electricity and buildings sectoral emissions ceilings, corresponding to their primary and secondary energy supply respectively. According to the EPA’s Provisional Greenhouse Gas Emissions 1990-2023 report, annual emission reductions of 10.3% are required for 2024-2025 in the electricity sector to achieve compliance with the sectoral emission ceiling for the carbon budget 1 period, and 2.9% for the buildings sector. In its greenhouse gas emissions projections report, published in May 2024, the buildings sector was projected to overachieve on its target of a 45% reduction in emissions between 2018 and 2030 by 15% in a with additional measures scenario. However, the EPA projected the electricity sectoral emissions ceiling could underachieve a target of 75% emissions reduction from 2018 to 2030 by 9% in a with additional measures scenario.
That is all very interesting, but if we have such a love-in with data centres we are not going to reach our emissions targets. We are already set to have a 57% shortfall for emission reduction for transport, buildings, waste and agriculture and a shortfall of 12% for renewable energy production. We face €26 billion in fines. How are we to pay that? How is the State to deal with that because of the policy of attracting data centres? The Taoiseach has been quoted as saying we are "demonising data centres" in Ireland with our commentary, but there is a lot to demonise them for. Just one Meta data centre in Clonee uses 2.5 million gallons of water per day. That is the same as Athlone, which is a town of 21,000 people.
How will we make up that shortfall in water and electricity?
There has been a commonality in People Before Profit to demonise data centres. I just saw the Deputy using her phone. Phones are central to everything data centres present around AI and online storage. They are critical to the infrastructure of a modern economy in Ireland. We will continue to deliver a balanced approach to facilitate additional demand for energy by data centres. The Government has outlined clear principles for sustainable data centre development. In July 2022, we published the Government Statement on the Role of Data Centres in Ireland’s Enterprise Strategy. It provided clear guidance to decision-makers in the planning process and encouragement for the data centre sector to implement decarbonised energy solutions and increase efficiency. It is the Government's preference for data centres to demonstrate decarbonisation in their design and additionality around renewable energy usage. That has been discussed with the sector and the IDA to provide a balance in continuing economic growth, ensuring that the future of tech companies, which provide thousands of jobs to this country, can be secured.
The Taoiseach made that comment when speaking at a data centre-linked company called Hanley Energy. There are two issues. Most of AI is utterly useless in terms of the impact for humanity, in comparison with actually dealing with climate change issues. There is no question most AI is not necessary. There is no effort by any of the companies to get people to reduce their online storage, which could be done easily. Most of us could do that. The Taoiseach has said emissions will be offset by renewable energy. It seems the LNG terminal is the Government's solution. That seems to be what is proposed. The Minister of State did not answer how this State will face into paying billions in EU fines when we also face into economic turbulence in the times ahead.
To address the Deputy's first point, AI is the technology of the future. To say it has no relevance to us trying to reach our climate targets-----
In comparison with reaching climate change targets.
It presents a real opportunity to unlock, produce and consume electricity more efficiently. I have no doubt there is significant opportunity in Ireland, with a lot of tech companies using AI and with their data centres, for us to enhance our competitiveness. We can also reduce our emissions. It is the technology of the future. We have set out the principles within Government that new data centre grid connections will be considered by system operators on a case-by-case basis. The Commission for Regulation of Utilities, CRU, is in place to conduct a review of connections of large energy users. We are using every lever at our disposal to ensure we do this in a sustainable manner that does not impact on our climate ambition but ensures tech companies, which as I said create thousands of jobs, are supported and secured.
