Ireland has a proven track-record in attracting high-value, cutting edge industry to locate and invest across its regions, and contribute to national prosperity. This includes energy intensive industrial developments in strategically important sectors such as data centres.
The construction and operation of data centres have positively contributed to the Irish economy over the last decade through direct employment and the provision of critical digital infrastructure. Data centres form the infrastructure backbone of Ireland’s digital infrastructure and are a critical enabler of our modern economy. Their presence strengthens Ireland’s position as a strategic international location for enterprise activity, including within the ICT, finance and manufacturing sectors. Data Centres underpin the delivery of essential services that citizens and businesses depend on daily, ranging from online banking, e-commerce, and cloud-based applications to accessing health and public services, and streaming entertainment.
Beyond their technological role, data centres contribute significantly to Ireland’s economy. Their construction and operation contribute to Ireland’s GVA, creates high-quality jobs and support development of a high-skilled and sophisticated supply chain, that now also exports globally. Data Centres are not only infrastructure assets; they are catalysts for innovation, enabling businesses to adopt cutting-edge technologies and develop new products and services.
The ability to host data centres in Ireland has become an important part of our value proposition for attracting and retaining foreign direct investment from leading global technology firms and reinforcing Ireland’s position as a trusted hub for digital infrastructure and innovation. Looking ahead, as AI and cloud computing continue to reshape industries, the role of data centres will become even more critical to maintaining Ireland’s global competitiveness.
The ‘Harnessing Digital Strategy’ sets out Ireland’s ambition to continue as a European and global digital leader and our commitment to progressing the digital transformation of our economy and society. As global digital transformation accelerates, the strategic importance of data centres continues to grow. Artificial Intelligence (AI), machine learning, and big data analytics will require vast computing power and secure, scalable storage solutions. Data centres provide this foundation, ensuring Ireland remains competitive in a rapidly evolving digital landscape.
The operation and development of data centres must also align with Ireland’s legally binding climate objectives and the need to maintain robust energy security. Our data centre policy is underpinned by the 2022 Government Statement on the Role of Data Centres in Ireland’s Enterprise Strategy, which prioritises energy security and projects primarily powered by renewables.
I have also engaged with the CRU on their proposed revision of Connection Policy for Large Energy Users (LEUs), and expect that this will be progressed in near future. The Government has committed to establishing a plan that will guide the short- and medium-term development of data centre and energy intensive manufacturing industry infrastructure in alignment with Ireland’s decarbonisation objectives and growing the knowledge-based economy. The plan is due to be published by my Department in early 2026.
