Eamon Ryan: 'Significant reduction in new data centres, but not off agenda'
Minister Eamon Ryan old the Oireachtas Climate Committee that the Government has modified its approach to data centres since the summer. Picture: Julien Behal Photography
There will be a "significant reduction or no huge advance" on data centre construction in the coming years, but they will not be off the agenda indefinitely.
That is according to Environment Minister Eamon Ryan, who told TDs and Senators that the Government acknowledges the issues surrounding data centres while the country is experiencing an energy squeeze.
According to Central Statistics Office data, electricity consumption by data centres rose by 32% between 2020 and 2021, and the increase between January-March 2015 and October-December 2021 was a staggering 265%.
The electricity consumption is equivalent to an additional 200,000 homes being powered, according to experts, while running one of Ireland's 70 data centres is water-intensive because of the cooling needed.
However, both Micheál Martin and Leo Varadkar have hit back at critics of data centres recently, with the Taoiseach saying they are "not the new villain" and the Tánaiste claiming "a lot of the facts are not coming across, unfortunately" when it comes to the power and emissions associated with them.
Mr Ryan told the Oireachtas Climate Committee that the Government has modified its approach to data centres since the summer.
"We recognised that we had a problem in terms of having to make sure that any new data centres fit in with our energy security and climate targets. Government strategy set out this summer is very clear in terms of any new data centre that will be contracted does have to provide some of the flexibility and use their back-up power supply to help us stabilise and secure the grid.
"We recognise that was an issue, we have acted in terms of changing the whole rules and the approach that the State takes to contract new data centres."
However, the current approach will likely change in the future once the energy landscape changes, he said.
"It’s not saying no. There will be significant reduction, or no real huge advance in data centre new connections in the coming years, because we are in such a tight situation.
State electric power transmission operator Eirgrid said this month that a key driver for electricity demand in Ireland for the next number of years is the connection of data centres and new large energy users.
There is very strong growth in this sector out to 2024, with continued growth towards the end of the decade, according to Eirgrid.
"Demand from data centres and new large energy users is expected to continue to rise as these customers build out towards their contracted load. Almost all of this is in the Dublin region," it said in its capacity outlook statement.
By 2031, 28% of all electricity demand is expected to come from data centres and other new large energy users, it added. According to pro-data centre organisation Host In Ireland, Dublin and its immediate surrounding is Europe's largest data centre market.
Around 70 data centres are operating in Ireland, with 65 located in the Dublin area, servicing the likes of Facebook parent Meta, Amazon, and Google. A recent decision to grant planning for a data centre in Ennis has met stiff opposition from local community groups.
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