Plan approval doesn't show Ireland 'rolling out the red carpet' for data centres, say ministers

The Commission for Regulation of Utilities last month specified that 80% of the energy data centres use will have to come from new renewable sources. File photo

Ministers have denied that Ireland is “rolling out the red carpet” for data centres, but said its new policy for large energy users provides “certainty for the sector”.

Minister for enterprise Peter Burke and minister for the environment Darragh O’Brien spoke to reporters after Cabinet approved the new Large Energy User Action Plan which, they said, will allow Ireland to attract investment into the future.

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It follows a decision by the Commission for Regulation of Utilities last month that effectively opened the door once more for data centre connections, but which specified that 80% of the energy they use will have to come from new renewable sources.

Ireland’s move to embrace data centres has come in for criticism from the opposition and environmental groups, given the ever-growing share of the country’s electricity that is being used by them and the demands it places on the grid and water infrastructure.

“We are a European leader and a world leader in relation to data centres,” Mr O’Brien said. “These are very significant foreign direct investments here that underpin about 185,000 jobs in the tech sector, and we want to grow that further.” 

Mr Burke, when it was put to him that this appeared to be Ireland saying it is “rolling out the red carpet” for data centres, said: “Absolutely it’s not rolling out the red carpet. It is trying to provide, in a sustainable way, the requirements of a modern digital economy.” 

The ministers said grid investment would be substantial in the years to come to make Ireland’s energy grid able to meet future demand, while the requirement on new data centres to have 80% come from new renewable sources would also boost that sector.

Energy bills

However, the Labour Party said the Government cannot continue to green light data centre expansion while households face some of the highest bills in Europe.

“Ireland’s grid is being stretched to breaking point and one industry is overwhelmingly responsible,” its climate spokesperson Ciaran Ahern said.

“We have long called for a moratorium on new data centres until we can be certain they will not overwhelm the grid, inflate household bills or undermine our climate targets.

“We recognise the role of the tech sector in Ireland. Data centres support jobs, tax revenue and services many people rely on every day. 

"This is not about shutting down technology or turning our backs on investment [but] whether we can manage growth responsibly, sustainably and in the interests of the public as a whole.”

CLIMATE & SUSTAINABILITY HUB