Dáil Éireann Debate, Tuesday - 9 December 2025
139. Deputy Barry Ward asked the Minister for Climate, Energy and the Environment the position regarding any plans to connect data centres in Ireland to district heating systems to beneficially use the heat they create; and if he will make a statement on the matter. [70044/25]
View answerDistrict heating is a proven technology that can play a key role in improving energy efficiency and reducing emissions in the heat sector. Government policy recognises the contribution that district heating can make to Ireland’s climate goals. This is supported by the findings of the SEAI's 2022 National Heat Study which highlighted significant potential for heat in buildings to be supplied by district heating, particularly in cities and large towns, where demand is concentrated and heat sources are prevalent. The National Heat Study included analysis of excess heat being produced by data centres (https://www.seai.ie/data-and-insights/national-heat-study/district-heating-and-cool). The current Programme for Government specifically recognises the important role district heating can play, particularly in relation to the capture of excess heat from data centres.
The use of excess heat from data centres offers the potential to provide low carbon heat for district heating schemes, as evidenced by the Tallaght District Heating Scheme (TDHS) which was developed by South Dublin County Council and is the first large-scale district heating network of its kind in Ireland. The TDHS uses excess heat from a data centre to provide heat to public sector and residential customers. Funding was provided by my Department, through the Climate Action Fund, to support the development of the scheme.
My Department is currently transposing the Energy Efficiency Directive (EED) which includes a mandate on the supply of excess heat, where technically and economically feasible, to district heating companies by industrial facilities whose total rated energy output is above a specific threshold.
My Department is also preparing legislation, the [Heat (Networks and Miscellaneous Provisions) Bill 2024], to support the expansion of district heating networks. The Bill will include a requirement for all heat networks in planning or development to be based on the use of renewable energy and/or excess heat, in line with the EED definition of "Efficient District Heating".
There are a number of other district heating projects that my Department is aware of, the majority of which are in the early stages of their project lifecycles. From available information, a significant number of projects in this pipeline intend to avail of excess heat from data centres. My Department, along with the SEAI's District Heating Centre of Excellence, which was established on foot of a recommendation from the 2023 District Heating Steering Group Report, will continue to work with project sponsors to progress these initiatives.
