Data centre development 'pivotal to a modern economy', enterprise minister says

A Meta data center in Co Meath. Enterprise minister Peter Burke said investment from data centre development is required. File picture: Niall Carson/PA

A plan for the rollout of sustainable data centre development between now and the end of the decade will be discussed by Cabinet ministers on Tuesday.

Ministers will meet in Government Buildings for the first Cabinet meeting of the year, with the Large Energy User Action Plan (Leap) high on the agenda.

The plan consists of a 17-point strategy detailing a growth path for sustainable data centres and energy-intensive industrial development over the next five years.

It will be brought to Cabinet by enterprise minister Peter Burke, who will publish the plan alongside energy minister Darragh O’Brien.

The document is expected to highlight that limited development of data centres should be undertaken in regional locations where there is energy generation capacity.

It will propose spatial planning for large-scale energy demand, including the development of green energy parks co-located with renewable generation and supporting infrastructure.

The publication of the Leap follows a decision from the Commission for Regulation of Utilities (CRU) in December that said new data centres connected to the electricity system must meet at least 80% of their annual demand from renewable electricity generated in Ireland.

New data centres must also provide generation or storage capacity to help supply electricity back to the wholesale market.

Mr Burke said investment from data centre development is required. “It is not about keeping tech on side,” he said.

This is absolutely pivotal to a modern economy. We have about 175,000 jobs that are really dependent on the IT sector.

“So much of the innovation, through generative AI, even some of the large industries, like our semiconductor sector, are critical to the success of a modern economy.

“We need to be able to provide an opportunity for data centres to really capture the opportunity and growth in those key sectors.

“The last thing we want to have is for companies that have been in Ireland for 60,70, 80 years, for us to fall off the investment schedule because we haven’t capacity in our grid.”

Mr Burke will also ask ministers to approve legislation which transposes the EU AI Act. 

The Act grades AI use by risk and includes penalties for violations. This will include fines of up to €35 million, or 7% of global annual turnover, depending on the violation.

Elsewhere, communications minister Patrick O’Donovan will seek approval for renewed Post Office Network funding, at an enhanced amount of €15m per annum over the next five years.

This comes following confirmation from An Post that it is increasing the price of a national stamp by 20c from €1.65 to €1.85.

Justice and migration minister Jim O’Callaghan, meanwhile, will ask the Government to approve amendments to the International Protection Bill.

Under the plan, adult beneficiaries of international protection will not be able to reunite with their family in Ireland for three years.

Housing minister James Browne is expected to seek Government approval for a €200m plan for an upgraded Wastewater Treatment Plant in Limerick in the coming weeks.

The existing Wastewater Treatment Plant (WWTP) at Bunlicky has been serving Limerick since the early 2000s.

Uisce Éireann has identified the plant as a priority need for upgrade to facilitate the increasing population of the city and its environs.

• Louise Burne is a Political Correspondent.