Data centres represent critical digital infrastructure that is central to Ireland's modern economy. They strengthen Ireland's position as a strategic, knowledge-intensive regional hub for the ICT sector and also support broader retention and expansion of existing investment that supports billions of euro in economic value for Ireland via high-wage employment, tax receipts and the supplier ecosystem.
The Government's policy is supportive of continued sustainable data centre developments that are consistent with our twin digital and green transitions. The Value of Data Centres to Ireland is an independent report commissioned by the Department of Enterprise, Tourism and Employment that clearly demonstrates the significant role data centres play in our economy and draws on extensive consultation with relevant experts. It reports that there are over 19,500 directly employed in the industry.
As detailed in the large energy user action plan, Ireland's technology sector, underpinned by digital infrastructure and data centres, accounted for employment of over 180,000 people in quarter 4 of 2024, equivalent to 7% of Ireland's total workforce. This highlights that beyond their direct contribution to construction and operations, data centres play a critical role in enabling access to a wide range of digital-intensive sectors, enhancing the competitiveness of the Irish economy.
While data centres are large energy users, Ireland's industrial electricity demand – unlike that in other European countries, which are heavily industrially based – is primarily concentrated on the digital economy. This is a core energy-intensive sector and, as such, it reinforces the effectiveness of a plan-led approach for future development of the most energy-intensive industries, including data centres, as set out in the Government's large energy user action plan.
The environmental NGO report referred to by the Deputy is consistent with the Government position by underlining the importance of accelerating the deployment of renewable energy to remove gas-related cost effects driving energy prices. The Government has introduced a number of initiatives, including unprecedented investment in PR6 and ongoing co-operation in the acceleration of the infrastructure task force to support increased roll-out of renewables.
